How do you manage your finances? Surely many things go through your mind when answering this question, but if you are looking for more precise answers, keep reading, because we will give you some advice. Apply these financial habits in your life to improve and save yourself some headaches.
Finances should be considered from a young age. These financial habits will help you manage part of your life in a better way, because they play a determining role.
So in this article we will give you some tips to acquire good financial habits that perhaps you were never taught, but are still important to improve and achieve financial success in your life.
The first thing you need to do is identify where you stand financially, after which you can begin to take control of your finances and take the first step.
Financial habits that you should apply in your life
1. Define financial goals
Setting financial goals is the next step towards achieving good financial habits , because without goals, it is not important to track your progress and evaluate the goals you have achieved.
What matters is that your goals are specific, measurable, achievable and relevant and you must set a time frame. Here are some examples of what you can consider as financial goals:
Pay $6,000 of debts in a period of 6 months
Save 10% of net salary by the end of the year
This type of goal will allow you to have greater control and you will be able to continuously monitor it, specifying numbers and dates. It is preferable to setting a goal such as “pay off debt” or “save this year.”
2. Acquire financial knowledge
Spend time and effort learning about financial topics, from basic concepts, language, financial products and useful strategies. This will allow you to develop your skills and make better decisions.
By learning about these topics you will be able to evaluate financial risks, identify investment opportunities, manage your assets and spend expenses.
3. Have a budget
You've probably heard the same thing more than once, but having a budget will make a difference in your life because it acts as a protector against the idea of spending your money.
Having a financial budget will help you know when money comes in, when you spend it, and how much you can save. If you don't have this information clear, you're probably spending more than you earn, uncovering debts and other short- and long-term financial implications.
The most important thing is to make a budget that is realistic, that is, one that fits your lifestyle and your income, because otherwise you will continue to feel frustrated with your financial performance. The ideal is to set short-term goals and modify them as you gain more control over your money.
financial habits financial habits financial habits financial habits
20% EXTRA DISCOUNT
Get started today and get fully certified with our Personal Finance Planning course
- 100% online at your own pace
- Practical exercises
- Lifetime Access
- Certified endorsed
Apply the coupon [DARE] and get an extra 20% discount for only 100 students. Click the button and join!
4. Use tools for your expenses
If you need help, there are a number of tools that can help you control your cats. Ideally, you'll want to choose one that suits what you're looking for:
🔴 Apps: There are a lot of apps out there that you can use to record your expenses and keep your accounts in order.
Excel: This is still one of the most useful tools for budgeting, but you must have knowledge of spreadsheets and formula management.
🔴 By hand: Paper and pencil never fail, for the more traditional it is a good option, but you must be more organized than with the other two options to manage your finances well.
Whichever method you prefer, you must get into the habit of organizing your finances on a monthly basis in order to be successful in achieving the goals set out above.
5. I pay taxes and bills
Although in Latin American countries the issue of taxes can be subjective, and where unfortunately some people do not understand the importance of complying with tax obligations and in the end they end up paying the consequences.
Paying bills is just as important as paying water, electricity, gas and internet bills. All of these must be included in your monthly report, because late payments will generate debts that we must avoid at all costs.
You must be organized and responsible with these issues to comply with declarations and invoice payments.
6. Save as much as you can
The first sign of good financial health is the ability to save. If you consider this in your financial plan, and learn to pay yourself before others, you will be able to have greater control over your personal finances.
Some saving techniques to get you started:
Use the 90/80 rule, meaning you should use 80% or 90% of the money you earn and save 10% or 20% so you can maintain your lifestyle and also have a cushion for emergencies, vacations, buying things you need, etc.
FREE DOWNLOAD
We know that managing personal finances is no easy task, which is why we offer you this completely FREE resource so you can learn how to plan your personal finances.
7. Avoid debts
Just as saving means good financial habits , debt is definitely the opposite. Yes, you can have debts to get something you want, and you can't pay it at the time. This is also part of a financial strategy, but you should change this habit if you are spending more than you earn, and you are not really reaching your goals.
What you need to do is eliminate debt with a strategy that balances your basic needs and determines your ability to pay. As with any strategy, you must define a time frame and respect what is established.
The main reason for getting into debt is not knowing when to stop and not knowing the payment limit. You must plan ahead to know your needs and determine what you need to spend on, so you can avoid falling into the vicious circle of debt.
8. Invest
Investing is undoubtedly one of the most difficult financial habits . What you need to achieve is to generate more money.
You must analyze where and what to invest in. You need knowledge to identify opportunities and invest your money intelligently to generate profits.
The investment options came from you, they can range from starting an online business, investing in a stock market, buying cryptocurrencies, etc.
Everything arose from your interests, creativity and the initiative you have for business. It is important to highlight that any form of investment you choose will involve risks and you can make mistakes, but you must learn from them. Once you find the form that suits you, you will be able to have an extra income that you should also take advantage of in the best way possible.
9. Plan a future
Planning for the future in all aspects, both financial, life projects, work, etc. Everything must be carried out under a solid and well thought out strategy. Because the lack of planning can lead to failure of any attempt. You must plan savings for emergencies, retirement, your children's education, etc.
Remember that all great ideas come from thinking about the future, that is why it is so important to have this vision in order to be successful, which implies changing your financial habits and this process can take years. Start now and apply these financial habits in your life.
Courses that may interest you
Do you want to acquire more skills to manage your personal finances? We remind you to also check out our courses Entrepreneurship: Create your Business Plan, Create your First Store in Shopify and Planning and Budgeting.
