Happy New Year, everyone! As we usher in 2024, it’s the perfect time to reflect on our financial habits.
Now, I’m not suggesting with this list that you overhaul your entire financial life overnight—that’s a recipe for a headache!
Instead, consider slowly incorporating these 12 personal finance habits into your routine over the next year. Maybe start with just 1-2 and add more as you get comfortable with the idea. (Bookmark this post to make that easier.)
They’ll not only help strengthen your financial health but also bring a sense of control and accomplishment.
1. Embrace Budgeting
Start the year by making budgeting a regular habit. Whether it’s a fancy app or a good old spreadsheet, find a method that works for you and stick to it.
2. Save First From Your Paycheck
3. Track Your Spending
Keep an eye on where your money is going. Tracking your spending can help identify areas where you can cut back and save more.
4. Regular Retirement Contributions
If you haven’t already, start contributing to your retirement fund. Even a small, regular contribution is better than none.
5. Establish an Emergency Fund
Life is full of surprises, and not all of them are pleasant. Aim to build an emergency fund that can cover at least three to six months of living expenses. This habit doesn’t need to change your lifestyle too much.
6. 1-Week Shopping Ban Every Month
Try a one-week shopping ban each month for non-essential items. It’s a great way to curb impulsive spending and reassess what you truly need.
7. Unsubscribe from Retail Newsletters
Limit temptation by unsubscribing from retail email newsletters. Out of sight, out of mind – and less clutter in your inbox!
8. Set Monthly Financial Goals
Break down your financial aspirations into smaller, monthly goals. This makes them more manageable and helps keep you motivated.
9. Invest in Financial Education
Spend some time each month educating yourself about personal finance. Understanding the basics of investing, taxes, and money management can go a long way.
10. Review and Adjust Investments
Regularly check your investments and adjust as needed. This habit ensures your investment strategy stays aligned with your financial goals.
11. Try Using Cash for Certain Budget Categories
Using cash for certain areas, like groceries or entertainment, can help you stick to your budget and avoid overspending.
12. Plan for Big Purchases
Instead of impulsively buying big-ticket items, plan and save for them. It reduces financial strain and adds value to the purchase. At the very least, if you see a major purchase you desire, set a time limit or savings amount before you make the purchase.
Remember, incorporating all these habits at once might be overwhelming. Pick a few to start with and gradually build from there.
The goal is to make these habits a natural part of your financial routine, leading to a more secure and prosperous year. Here’s to a financially healthy 2024!
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