Money-saving habits are best practiced as early as possible so that later on in life, they become automatic and effortless things to do for you. Here are some habits to be mindful beginning now:
Save for yourself first whenever you receive your paycheck.
Almost everyone think of savings as something that’s left of their money after they spend for the stuff they need and want. Despite a common habit, you shouldn’t follow the bandwagon. A good personal finance habit is to make sure to save at least 10% whenever you receive your income. In doing so, you can be sure of having consistent savings each time.
Keep your monthly expenses way below your monthly income.
While this advice is a cliché, most people still don’t practice it especially these days when credit cards and personal loans are just within reach. As early as possible, don’t buy anything that your income and your savings can’t afford. Better yet, make sure to save for those things today so that you can buy them once your savings are enough.
Buy big ticket items only if they will provide income.
Financial experts often advice that anything you buy should be able to give you returns on your investment especially when they’re major assets such as a computer set or a car. Thinking about buying that new smartphone model? It’s best to have it when you’re planning to use it to communicate efficiently with your current and potential clients to further boost your business.
Resist the urge to increase your expenses whenever your income increases.
Make sure to stick to your budget and resist the urge to buy unnecessary stuff especially during months when you receive cash bonuses, rewards and incentives. In cases when your monthly income increases due to a promotion or a new job, make sure to analyze your budget first before spending much more than you used to.
Ditch the piggy bank.
It may be a surprise to many people, but piggy banks and related containers are not practical savings tools for more than a month or a quarter. The fact is that putting your money in the vaults of real, established banks is more practical because of the interests that you can earn each month or quarter, depending on the financial institution. Although the interest income is just in trivial amounts, it is still better than keeping your money in a personal piggy bank wherein the value doesn’t grow even just a bit.
Start these money-saving habits today before it’s too late to change your view on money and savings.