Top 5 Financial Habits to get you started

Teach Me Money

I’m the first to admit that I haven’t always been the best with money. Like many, I’m continually learning, and yes, sometimes I spend money on things I shouldn’t. Discipline isn’t always my best friend, but I strive to be consistent, adhering to something akin to the 80/20 rule: 80% of the time, I stick to good financial habits, and for the remaining 20%, I simply aim to learn and adjust.

So how do you set yourself up for a better financial future, I have five tips to share that will help you get started.

Tip #1: Pay Yourself First

The first habit I want to share is to save 10% of everything you earn. This is especially crucial for young adults and teenagers. If you’re just starting your financial journey, stash away 10% of your earnings in a place you can’t easily reach. For adults, consider directing this into a home loan or an account set for emergencies. Prioritise saving as the very first thing you do on payday, automating it if you can. Your financial health should be non-negotiable. Start small if you must, but start somewhere.

Tip #2: Embrace Budgeting

While the idea of budgeting can make some people’s eyes glaze over, I believe it’s absolutely essential. Set a family budget and review it regularly. This means knowing where every penny is going, from school fees to groceries and savings. When unexpected expenses do arise, a well-crafted budget will help cushion the blow. The peace of mind that comes from knowing your financial footing far outweighs the initial boredom budgeting might bring. It’s a plan that prepares you for both planned expenses and surprise costs.

Tip #3: Preparing for a Growing Family

For those considering starting a family, my advice is to practice living off one income well before the baby comes. This method helps you adjust to a lower income, enabling you to identify any areas where you might need to cut back. Save the other income entirely for big expenses or future needs. It’s about readjusting your lifestyle before necessity forces the change.

Tip #4: Mindful Shopping

A stylist once gave me great advice: when tempted by a sale, ask yourself if you’d purchase the item at full price. This question can prevent impulsive buys that ultimately sit unused in your closet. Carefully considering purchases, especially during sales, can help you avoid filling your life with items you don’t truly value.

Tip #5: Unsubscribe from Marketing Temptations

Unsubscribe from marketing emails. It’s a simple yet powerful tip, especially during high promotion periods like Christmas or Black Friday. Without the constant lure of sales, it’s much easier to stick to your financial goals.

Tip #6: Plan Your Meals

Meal planning not only saves time but also significantly trims your grocery bills. By shopping once a week with a clear plan, you’re less likely to be drawn into impulse buys that add up over time. It’s one of those small steps that lead to big savings.

None of these tips are groundbreaking by themselves, but combined, they can transform your financial landscape. It’s the small, consistent steps that drive big changes over time.

Links

Website: https://goldentrianglefinancegroup.com.au/