Just like exercise, healthy eating, and meditation, all good habits multiply their benefits when done daily, and financial management is no exception.
So, here are 5 steps to incorporate into your financial routine. Studies suggest that it takes an average of 66 days for an individual to turn any behavior into a habit, but this can vary from person to person. So, if you choose what suits you and meets your needs from the list, you can start a very effective financial routine in a very short time.
Instead of seeing savings as an effort and sacrifice, why not consider it an opportunity to escape financial constraints? The amount saved could be what allows you to reward yourself financially when you want to buy something or embark on an experience that wasn’t in your initial budget.
In an attempt to adopt this new concept, save at least 20% of your salary at the beginning of the month, and then save daily, even if it’s just a small amount. This will not only reinforce your savings culture but also give you extra spending money at the end of the month.
2. Review your financial goals
To apply this tip effectively, don’t just think about short-term goals but also plan for your long-term life, whether individually, as a family, or professionally. Having a future vision serves as a great motivator for perseverance in proper financial management and encourages you to seek the best ways to achieve it.
If you want to travel, buy new clothes, start your own business, or go on a special trip with your children, remind yourself of these goals daily. They will give meaning to your efforts and make your spending habits less impulsive.
3. Track expenses
Make a list of your daily expenses, whether it’s for coffee, groceries, filling up your car with fuel, etc. This will make it easier to calculate your expenses at the end of the month and help you review your spending patterns, giving you a clearer understanding of your spending habits.
To do this, you can keep a notebook to record expenses at the end of the day, jot down the numbers on your mobile phone, or, even easier, use free financial management apps that automatically record your expenses. This could also be an additional reason to use electronic payments, but be cautious not to increase your expenses.
4. Check mobile apps
Take a quick look at your email, messages, and other apps where you frequently shop to stay informed about your financial matters. You may choose to unsubscribe from services you no longer need or receive reminders about upcoming credit card payments.
It’s not necessary to take immediate action based on this step, but the goal is to stay aware and in control of your financial matters. Don’t forget to log in to your banking app from time to time to check your account balances, especially if you have set up automated payments for bills like electricity and phone bills.
5. Take a step towards financial literacy
The road to financial literacy requires a series of steps and many years for individuals to reach advanced levels that enable them to manage their money professionally. Persisting in this goal will bring you benefits beyond the financial aspect, such as improving your analytical, planning skills, and broadening your perspective to make better decisions.
To make this part of your routine, take a step towards financial literacy every day, like reading an article, consulting an expert’s opinion, or identifying your financial mistakes and fears and creating a plan to address them.
There is a lot to accomplish in this regard. But the question remains: which of these steps and habits is the easiest and closest to your lifestyle and thinking? Share it with us and embark on a constructive routine and a balanced financial life.