We all try to manage our money well. It’s much easier said than done. I think it’s something that will always be a work in progress as we go through different chapters of life. However, there are certain financial habits that I think are key in managing finances well throughout our lives.
Save
First and foremost I think a savings account is a must. You never know what’s going to come up – a car repair, home repair, unexpected bill can show up without notice. It’s always nice to have a cushion to fall back on when something goes wrong.
For example, we had a leak coming in through a pipe on our roof. It wasn’t covered under the home warranty so we had to pay the entire cost out of pocket. Thankfully, we had some extra cash set aside for an occasion such as this.
Invest
As long as debts are paid (besides the house) I think contributing to a retirement account is something that’s often overlooked. It’s hard to think that far into the future, but being prepared will make things easier when that time does come.
I’ve invested in a 401(k) since the option was available through my employer. Not a lot comes out of each paycheck, but it grows quickly, especially with the employer match. There are many investment options and I’d recommend you discuss them with a trusted financial adviser.
Know the Difference Between Wants and Needs
This is a tough one for many (including me!), but it’s super important for anyone wanting to get their budget on track. Make a little room in the budget for a couple wants – a cup of coffee a couple days a week, a new app for your phone, etc.
A good way to try this out is to have a “spending freeze” for a specific amount of time where you only busy things that are absolutely necessary. While I haven’t personally tried this out yet, I think it’s a great idea.
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Make a Budget
This is something I had been putting off forever.. we had a general one, but nothing written out. I FINALLY found I system I am super happy with. It’s digital and really easy to use. Both my husband and I use our debit card for everything… we’re not quite ready to switch to a cash system! Plus, we get bank rewards for using our cards. That’s why a digital system was a must for me.
This system links with our bank account so we can categorize and keep track of our spending. We use Mint by Intuit. It synced flawlessly with our bank account and I really like how it works!
Give
“Do not withhold good from those to whom it is due, when it is in your power to do it.” – Proverbs 3:27
It doesn’t have to be big, or fancy, or even cost you money. It can be the giving of your time to help someone. But giving back to others almost always blesses the giver as much as the recipient.
These 5 habits are ones that I believe are some of the most important for diligently managing your finances. Saving, Investing, Budgeting, Giving, and knowing Wants vs. Needs are habits that will serve us well our entire lives.
More Money-Saving Tips:
Starting your financial habits early are the key. But, for me…it’s not touching the savings! Grandchildren are my down fall. 🙂
I can relate.. our budget stalls out when our niece and nephew come visit 🙂
Such great tips. I love Mint.com and have used it for years.
These are great ideas… It is so important to set aside a little bit for saving, spending and giving when mapping financial goals.
Great tips. My husband and I been married for nearly 4 years now, and I’m blessed we’ve never been in debt. I’m blessed my husband is really disciplined with money, we save and budget…we always also discuss what we “want” and what we “need”…we’re now looking into investments opportunities. But one thing I think we can improve is the giving part! thanks for sharing!!
Learning the difference between “want” and “need” is the hardest for me. These are some great tips.
What awesome tips. We had a really hard time distinguishing wants and needs for a long time. Now we are trying to teach the kids the same thing. Thanks for the post, I found it on Thrifty Thursday Link up.
Great tips, Laura! Being financially fit really is all about establishing good habits, and you’ve definitely covered them all. Thanks for sharing! Pinning! 🙂
Thanks for stopping by and pinning, Leesha! 🙂
Good advice… such important things to do regularly.
Giving is the hardest for us, because we’re still in debt! We really, really want to give, so we’re learning to give of our time as generously as possible, in lieu of finances
I think time can be just as valuable as monetary giving. Thanks so much for stopping by, Gretchen!
Just found you on Thrifty Thursday. I’m curious where you bank–mine doesn’t offer rewards with a debit card. Thanks!
We bank at a local credit union. Thanks for stopping by!
Great article, Super good ideas. Thanks for sharing
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wow! you have summed up quite important tips in this article. Thankyou for such a good tips.