AND PITFALLS TO AVOID
by Contributor
(Sep. 17, 2018) — Developing good financial habits that lead to monetary success and stability can take years to do, but the benefits make it all worth it. With your finances under control you can stay out of debt, maintain strong credit scores and get the financing that you may need when it comes to making large purchases such as buying a home or a car. It only takes a few bad decisions with your money to create ongoing financial issues. This is why it is extremely important that you create good financial habits to protect your future. Carry on reading to find out more about what these habits are that you should be following!
Don’t Overspend with Credit
When used responsibly, credit cards are the best way in which you can build credit and they can help you out in an emergency situation. However, if you find that you are using your credit card too often and that it is beginning to overwhelm your monthly income, then this is a huge sign of financial trouble and a habit you need to break quickly. A good financial habit is to instead create an account with a bank where you can save money and then have this cash ready for any bigger purchases that may arise unexpectedly such as a new fridge or television, rather than heading straight for the credit card. Ensure you are with a bank where you can get rewards when you spend, for example bbt.com, which has a credit card where you can get 10% bonus cash when you redeem rewards into your account.
Follow a Monthly Budget
You will find that most people who have good financial habits do so because they create, and more importantly follow, a monthly budget. Many people quickly find themselves overspending on a month-to-month basis as they underestimate how much they really need to pay bills and other expenses. There are lots of great budget apps that you can now use which will help you get into following one and creating good financial habits.
Don’t Impulse Buy
Impulse buying is something that most of us will admit to being guilty of but this really is a terrible financial habit to get yourself into. When you impulse buy, you tend to end up buying items that you maybe want in that moment but that you do not actually need. Impulse buying can quickly lead to your spending hundreds per month and not having anything of substance to show for it. A good financial habit to get into is to plan your shopping trips and stick only to what you need to buy.
Plan Long Term
Finally, we all want to look forward to a nice retirement, but this is something that you will need to plan for long-term. You need to ask yourself whether realistically you will be able to retire comfortably with your current retirement plan. Most people tend to think of their retirement as an afterthought, but this is a mistake. As a good financial habit, you should be looking at speaking with a certified professional who can help you make long-term plans for your financial future.