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7 Financial Habits That Make You Smarter With Your Money

7 Financial Habits That Make You Smarter With Your Money

Being informed financially is an essential factor for building wealth. Most of the time the wealthy maintain solid financial and money habits that help them sustain their wealth. While there are sites like Creditloan that could offer solid financial advice and resources to be smarter with your money, this article will look at some money habits that can help you build your wealth.

Here are 7 financial habits that will make you smarter with your money.

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1. Be clear and specific

If you want to be smarter with your money, you have to know what you want to accomplish with it. Your financial goals should be written down and well articulated. Know what your annual income and net worth are. You can use this knowledge to set big goals in your business and personal life.

2. Invest

You will have spare change that could either be spent or invested. You can only build wealth by investing and you should make this a habit. You don’t need a lot of money to get started. Simply be willing to research and learn about the advantages of smart investments and how to begin. Take advantage of the money compounding opportunities available and invest that extra cash.

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3. Learn to save

Learn to save whatever dollars you can. You don’t have to save big at first. But saving is a habit that can be nurtured. When you are making a lot of money, your lifestyle could dull your senses about the need to save. However, if you can start seeing every extra penny you earn as a tool to paying off your students loans, personal loans, having an emergency fund, or investment account you’ll understand how effective saving can be for you in the long run. It’s better than the short term gains of spending your money now.

4. Automate your finances

Having your finances run on autopilot is a smart money move. Your money should automatically go to savings accounts, investment accounts, and to your creditors. This way you can effortlessly have financial security. Moreover, you are not consumed with paying your dues when you are meant to be working or spending time with people you care about.

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Payment processing tools like MoonClerk and Due will make sure your money is on autopilot. This way you won’t forget a payment and you’ll have a good solution for automating your extra cash flow.

5. Read finance books

Perhaps this is the one thing the wealthy have over the have-nots. They read. Nobody could have more financial wisdom than you, that’s if you put your heart and mind into growing your stash.

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It goes beyond whatever formal education you may have. You have to learn to teach and invest in yourself. In this way, you educate yourself about how to become wealthier.

6. Surround yourself with the right people

You can’t negate the power of surrounding yourself with people who can support you with financial advice and knowledge. Successful people who are high earners have the capacity to expand your thinking and boost your income. Most of the time we become like the people we surround ourselves with. You certainly would improve your financial habits when you’re surrounded by people who are smart with their money.

7. Know how much you spend

You can’t be smart with your money when you do not know how much you are spending or giving away. If you want to be sure about how much you can potentially put away, you have to track your daily expenses. There are apps like Mint and Level Money that can help you understand how much you are giving out and how much is coming in.

Featured photo credit: https://morguefile.com via morguefile.com

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Casey Imafidon

Specialized in motivation and personal growth, providing advice to make readers fulfilled and spurred on to achieve all that they desire in life.

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Last Updated on April 3, 2019

How to Nix Your Credit Card Debt in Less Than 3 Years

How to Nix Your Credit Card Debt in Less Than 3 Years

Debt is never a fun thing to be in. But, there are many actions that you can take that will help you rid yourself of the burden of debt once and for all.

By coming up with a set plan, eliminating your debt can feel much easier than constantly thinking about it.

This post will provide some tips on how you can do this to help you nix your credit card debt in less than 3 years.

Hint: there are ways that are easier than you think.

1. Consider Consolidating Multiple Credit Cards If Possible

This may not be applicable to you, but if you have multiple cards – it is something to consider. Keeping up with multiple bills is time consuming.

It will depend on the balance you have on each. Consolidate ones you can but do not do it to the point that you get too close to the maximum limit. Also, it is ideal to pick the card with the lower interest rate.

Consider if there are any fees or alternatively, rewards, with transferring a balance to another card. Watch out for fees. Note that some cards offer rewards for transferring a balance to them. This is extra cash that can help go towards paying off your debt.

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Having one or two cards can make nixing your debt much simpler than keeping up with the balance of a bunch of cards. Keeping track of paying the minimum towards a bunch of cards is time consuming. Spend the time to consolidate instead to make the overall process simpler going forward.

My tip: Have one main credit card. Have a second one that you use for necessities – such as groceries or gas – that offers rewards for those purchases (a lot of cards do) and set the second one on auto-pay. You should be able to pay off a smaller amount on auto-pay if it is a necessity. If you think you cannot, then you may need to cut down a lot on expenses.

Why do I suggest doing this? Having one thing set to auto-pay is one less thing to think about. One less thing to waste time on. Same idea with consolidating to one main card. Tracking down too many is a hassle.

2. Try to Pay the Full Balance You Spent Each Month at the Very Least

You need to pay off the amount you are spending each month when that bill comes in. This is the amount you spent THAT month.

Do not let the debt keep accruing while you work on paying any unpaid debt that has accrued. It will become a never-ending battle. Try as best as you can to be current on paying for each month’s expenses when that month’s bill comes out.

If this is a strain, consider why. You may need to cut expenses. Or you may need to consider other cards. Or look at where this money is going.

3. Pay Extra When You Can – Every Small Amount Counts

This cannot be emphasized enough. If you are looking at a lot of credit card debt, it can look daunting, but each extra amount that you can put towards the debt will really add up – no matter how small it is.

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It does not just reduce the principal amount that you have left to pay off, but it reduces the amount that is collecting interest. You will always save money with that reduced interest.

4. Create a Plan on How to Pay Extra

Back to the main point, having this plan is giving you one less thing to think about.

This plan should be a plan that works for you. If it does not work for you, your spending habits, and your views on debt, then it will not be an effective plan.

For instance, if a set plan of an extra $50 (or another amount that you know you can afford) works for you, then do that. Set that aside every month and pay that extra amount. Treat it like a bill. Choose an amount that works for you and pay it like clockwork as though it was a bill you had to pay each month.

Little amounts will not nix it entirely, but they will help tackle it and having a set plan can make it less of a chore. Creating a new plan of how much to put towards it each month is an unnecessary added stress.

5. Cut out Costs for Services You Do Not Use

If you are signed up for subscriptions that you do not use because of some free trial or for some other reason, cut it out. Your overall financial position will look better.

In turn, that will make cutting your credit card debt easier. Look at your statements to find these expenses. If you do not use them, you may forget you are paying some unnecessary amount each month. Cutting it out can really add up in savings that you can put towards other needed expenses.

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6. Get Aggressive About It

Consider these points:

Depending on the interest and the level of debt, you may need to give up a few indulgences. For example, instead of ordering delivery or going out to eat, cook at home. Everything adds up.

Other things may be more of a sacrifice. It may be a trip you wanted to go on, or a daily latte habit you’ve picked up. In these instances, consider how important it is to you and if it’s worth the sacrifice. And if it is a costly expense, think whether you can wait to indulge.

Cutting an extravagant expense can really help make a dent in your overall debt. Try not to add to debt when you are trying to pay it off. It will be a never-ending battle. Make it less of a battle with these tips and it will feel easier.

Bottom line: Do what you can to make this process easier for you. Implement steps that do this. It takes time now, but will help overall. Also, keep track of your spending and paying down of your debts. Which is the next point.

7. Reevaluate Your Progress at Set Intervals

Doing a regular check-in can help you see your efforts pay off or maybe indicate that you need to give this a bit more effort. If you check every 3-6 months, it will not feel so much like a chore or feel so daunting.

By doing this, you will be able to better understand your progress and perhaps readjust your plan. Bonus: if you see it pay off, it will feel great to do this check-in. You will get there.

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Finally (and most importantly)…

8. Keep Trying

Do not get discouraged. Pushing it off will make it worse. Just keep trying.

Once your debt becomes lower, each monthly payment will reduce the balance more. Why? You are paying less towards interest. It will be a snowball effect eventually and it will become much easier to manage. Just get to that point. And know once you do, it will feel easier and motivating.

Start Knocking out Your Debt Today

The best way to eliminate debt is to get started right away. Begin by implementing the above steps and watch your debt just melt away. Try out some of the above strategies and see what works best for you. Soon you’ll be on your way to a debt free life.

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