Healthy Financial Habits
- April 3, 2023
- Financial Partners Credit Union | Time to Read: 3 minutes
5 Daily Changes That Build Long-Term Wealth
- Making a budget and sticking to it is one of the best ways to stay on track of your finances.
- Invest in yourself. Learn about stock options, different savings softwares, and expand your financial literacy.
- Automate your finances, and save more than you spend to avoid financial stress.
If you're like most people, you probably want to save money and build wealth for the future. But it can be hard to know where to start. Luckily, there are some small changes you can make in your daily routine to help you reach your financial goals. Keep reading to learn more about healthy financial habits and how they can benefit you in the long run.
Tip #1: Make a budget and stick to it - knowing where your money is going is key to saving money
An essential part of building healthy financial habits for the long term is to make a budget and stick to it. Keeping track of how much money you're spending and where it's going can be intimidating at first, but it can pay off in the end. Knowing where your money is going is key to saving money, and sticking with a budget is one of the best ways to ensure that you're on top of your finances.
Start small; create a budgeting system specific to your income that allows you to be aware of your expenses each month. Make sure when tracking expenses, that you review them regularly to make sure you're sticking with what was allocated in the budget. Don’t forget to write down how you spend money in your pocket or purse. It is easy to overspend if you aren't keeping track of all of your money. Keeping up with the plan is essential for managing money responsibly.
Tip #2: Invest in yourself - whether it's taking a class or investing in stocks, growing your wealth starts with you
When it comes to establishing healthy financial habits, investing in yourself is one of the best things you can do. Whether you’re deepening your knowledge and skills with one of our online financial modules or familiarizing yourself with stocks and investing, expanding your financial literacy is a great step in developing a foundation of sustained wealth and success. Taking the time to find out what works best for you can lead to an increased sense of security when it comes to your financial future. So start exploring what methods fit best into your lifestyle, take small steps forward, and dive into ways that help you develop long-term wealth.
Tip #3: Live below your means - save more than you spend and don't use credit cards unless you can pay them off in the short-term
Incorporating financial habits that will help build long-term wealth and security begins with living below your means. That means making sure to save more than you spend each month, and avoiding the temptation of using credit cards unless you can pay them off fairly quickly. Taking time each day to focus on budgeting, tracking spending, and creating a realistic plan for saving money on a consistent basis will help you get ahead financially and build crucial economic stability in the long run.
Tip #4: Automate your finances - set up automatic payments for bills and savings so you're never late or miss a payment
Automating your finances is one of the best ways to ensure you never miss a payment, and can be an incredibly effective tool for building healthy financial habits. Set up automatic payments through our Digital or Mobile banking - for both your bills and savings so that money is always set aside for the important things like paying off debt or increasing your savings goals.
Not only does this ensure there is money available for the essentials, it also makes it much easier to stick to those goals. Automation takes away the extra step of having to manually transfer funds each month and takes out any temptation or distractions that could derail you from your long-term wealth goals.
Tip #5: Have multiple streams of income - consider side hustles or freelance work to supplement your primary source of income
Having multiple streams of income is a great way to supplement your primary source of income. Side hustles such as freelance work and other part time gigs can help you save more money while building healthy financial habits. Having multiple sources of income will give you the chance to create long-lasting wealth and achieve financial freedom. Plus, if done right, it can even give you insight into what kind of job you’d be most passionate and successful in over the long haul. Sites like Upwork and Fiverr, can help you find side hustle opportunities for everything from freelance writing to website design and programming. So turn a hobby or passion into an extra income stream. It's worth taking some time to think about diversifying your income streams to reach your financial goals faster and easier.
Incorporating healthy financial habits into your life can help you achieve short-term and long-term financial goals alike. Whether that takes the form of making a budget and sticking to it, investing in yourself, living below your means, automating your finances, or having multiple streams of income there are many ways to establish a strong sense of financial stability. With planning and dedication, anyone can develop a set of habits that works with their lifestyle while allowing them to save money and reach their desired level of wealth. A good place to start is by setting up an appointment with one of our financial advisors who can help provide personalized advice for creating healthy financial habits.
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