Building Better Money Habits
If finances are a source of worry in your life, you’re not alone. Poor money habits can create struggles in keeping up with expenses and make it difficult to reach your financial goals. Pinpointing your unhealthy financial habit can be a great first step towards building better money habits. Making tweaks to your everyday ways, such as cutting back on spontaneous spending, can allow you to better save for a vacation, replenish your emergency fund or help pay off any existing debt you may have. All of which can be more beneficial to you and your finances now versus the spontaneity of a sale item or something that you don't need in this very moment. Check out these helpful tips to start building better money habits today.
Build a budget and track your expenses.
While building and tracking are important, it’s just as important to regularly review these items. With rising costs, you may not realize how much more you’re paying for your monthly expenses that you were a year or two ago. Making the necessary adjustments is crucial to keeping your budget intact. A great way to take a look at your expenses is to use the free Spending Analyzer tool inside Digital Banking. This tool can help break down your monthly expenses to give you a holistic view of exactly where your money is going each month.
Create a plan to attack your debts.
While not all debt can be wiped out with a simple snap of your fingers, putting a plan together to help tackle that debt can make a world of difference. No matter the plan of attack you chose to take, a plan to pay off your debt can help you better manage your finances and help continue building better money habits in the long run.
Cut down on the impulse shopping and purchases.
While a sale price might be enticing, do you really need it at this very moment? Or could those dollars be better suited for something like paying down debt or putting that money off to the side for a future fun night out or your savings account?
Grow your savings.
Both your regular savings, but also your emergency savings. Consider the mantra “pay yourself first” when receiving your paychecks. To make this process easier, automate your savings by dedicating a certain percentage or dollar amount of each paycheck to go into your savings account. Do this ahead of paying bills or shopping to help establish a good habit. You can also use the free Savings Goal tool in Digital Banking to help you keep a close eye on your savings.
Keep a close eye on your credit.
As a part of your ongoing budgeting and tracking of monthly expenses, keeping a close eye on your credit score and report can also help improve your finances and strengthen your new money habits. Thanks to SavvyMoney in our Digital Banking platform, you have free access to credit score monitoring, reporting and even personalized offers to help you improve your credit score and overall financial wellness. Familiarizing yourself with your credit score is vital for future purchases that might require a loan or line of credit.
Approaching your money management and financial planning in a smart and efficient manner can help set you up for a bright and successful future. Just keep in mind, that this process often requires patience, discipline and some self-realization about your money habits along the way. It will take some time, and it will come with challenges, but rest assured, it will all be worth it in the end.