So the holidays are over now & the New Year has begun! This is the time you must recheck your financial goals & resolutions. Everyone knows that we should spend less and save more, but to do that you need to have a detailed goal and specific plan to fulfil them.
First of all identify your saving needs & by when you want to accomplish your financial goals. Then, analyze your current spending and saving behaviors to adopt necessary money habits.
Here we have listed such 5 best money habits that will help you to reach your financial goals in a structured and easy manner.
Top Healthy Money Habits To Consider in 2016
- Identify your income and expenditures
You need to recheck your income versus spending habits. It is important to know your expenditure – how much is coming in versus going out. Also categorize your total spending into groups like food, education, entertainment and other miscellaneous costs. This way it will give you a realistic picture.
- Create financial goals with realistic plans
Decide on achievable financial goals & create a realistic plan of action to fulfil them. Prioritize needs over wants. Design a budget and categorize your weekly/ monthly amount that you are allowed to spend. You need to save more to achieve the goals you have established for yourself.
- Invest a percentage of your savings
Saving is definitely a very good money habit. But your money is not going to grow in the savings account. This is the time you must realize the importance of investment. So choose some smart investment instruments that will give you higher returns and comes with lower risk.
- Automate your Accounts
Automating your finances will help you to spend less time in managing your Finances. Set up automatic payments like automatic bill payment, investment contributions and use the time and energy to focus on your other money plans.
- Pay Debts on priority
Make it a habit to put all your extra money e.g. bonuses, any matured policy/ investment, cash gifts etc. towards your debt. This way you can speed up your debt reduction than if you could just made through the standard payments.
Also make sure that you pay off your credit cards bill in full every month. These are some of the healthy money habits that you must consider and start acting upon this new year.