These are my 3 best financial habits
To help you manage your finances, consider adopting these habits.
Your habits can help shape your personal finances. Developing good habits can encourage you to do smart things with your money. It can help you achieve financial success.
Of course, there is a flip side to this: bad habits can lead to financial disaster.
Like most people, I have good habits and bad habits. But when it comes to managing my money, I have adopted three behaviors that go a long way in helping me achieve my financial goals over time.
Here is what they are.
Start your journey to financial success in style
Get free access to selected products that we use to help us achieve our financial goals. These fully verified choices could be the solution to help you increase your credit score, invest more profitably, build an emergency fund and much more.
By submitting your email address, you consent to us sending you tips and products and services that we believe may be of interest to you. You can unsubscribe anytime. Please read our privacy statement and terms and conditions.
1. I check my credit rating
When you sign up for utilities, get a cell phone contract, apply for a job, or get auto insurance, the company you’re trying to do business with is probably going to get the most out of you. This is why your credit score is important.
I regularly check my score because I don’t want a low score to affect my financial life or limit my options. Auditing helps me stay in control of my finances. It also helps me understand how certain things affect my score, like paying off my mortgage or charging a lot on my credit cards.
Checking my score also helps me protect against identity theft and make sure there are no errors in my report. If there were any errors, I would be able to correct them immediately before they affected my ability to obtain credit card approval or complete other financial transactions.
2. I fully reimburse my credit cards every month
I love credit cards because of the rewards and the benefits they offer. But I also know that interest on credit cards can be extremely expensive.
I don’t want to waste money on making credit card companies rich. And I especially don’t want to get stuck in a cycle where every paycheck I get is already committed to pay for past purchases. As a result, I still pay my credit card bill in full every month. In fact, I have implemented automated payments to make sure this happens without any action on my part.
3. I live on a low budget
Living on a budget is my third big financial habit, and it’s the one that makes many of my other decisions possible. My budget sets out what I can and cannot spend on different types of purchases, as well as what I will save.
Because I’ve budgeted – and I’m sticking to it – I know I’ll have the money to pay off my credit card balance without having to pay interest. I am able to achieve a good credit score by making all my payments on time and not maxing out my cards. And I can use my money in a way that helps me achieve my life goals.
Sticking to a budget was a harder habit to get into than checking my credit regularly or paying off my cards in full. It forces me to plan my spending in advance and track where my money is going.
However, checking my credit only takes a few minutes and paying my cards doesn’t require any effort since my payments are automated. But the perks, including being able to spend guilt-free, have made these habits worth sticking to.