9 good financial habits

Holidays are the time when we should recharge our internal batteries, but it is also a time when we have more time to reflect or change. Maybe this is the time for you to take a fresh look at your finances and financial habits. Perhaps you would also like to change something in this matter and you will now find more space for it. Today, a text about habits, because managing your own finances depends a lot on them.

What is a "habit"?

A habit is usually a behavior that we do after a stimulus occurs. Our mind needs them very much, because otherwise it would be constantly repeating the learning process, and I don't know if we would have such amounts of energy all the time. Habitual activities account for about 95% of our various daily activities. We can say that it is an automatic activity that is acquired through exercise, mainly by repetition. Today I would like to focus on good financial habits that are worth developing and consolidating. As Nathaniel Emmons said. finances, because unfortunately habits can also be negative. For now, let's stop at the fact that we are what we constantly do. So let's find positive habits that can help us be more efficient home financiers! Control your expenses and income. If you know what your costs were and how much you earn, it will be easy for you not to spend more than you earn. Once a month, always summarize all expenses in a given category (I wrote about how to make a home budget in this post). Once a year, review all documents, contracts, insurance and consider whether it is possible to change the company or operator to pay less. Plan your home budget. This point is closely related to the above. Knowing your costs and income will make it easier for you to plan your budget. If you have your own budget, you are planning it, it will be less and less frequent that you do not know how your money dispersed. Reduce costs if you see an opportunity. If you control costs, you should know when you can change something. React immediately if you see that any cost can be reduced. Set aside a fixed time for your finances when you can write down your bills, view your income, etc. For some people it is best to take 10 minutes every day, and for someone else an hour once a week. It is important that this is a constant time and that you stick to it. Start thinking, talking and learning about finances. Don't dismiss the statement that finances are important. Yes, they are not the most important, but it is a large part of our life and it is worth paying attention to it and developing also in this area. You don't need to know everything, of course, but it is worth reading from time to time about financial trends, what I can invest in, find out why to invest at all, or how to save. Save. Regular saving should become a habit. And that's not putting off what's left, I mean. Save first, spend later! This way you can be sure that you will have regular savings, even if it is small at first. Avoid loans, especially consumer loans. And by saving, as above, it will be easier for you not to. If you have to take out a loan, such as a mortgage, you should always be SURE that you will be able to pay it back without a huge burden on your budget. Remember that it is not the bank that is obliged to analyze your financial situation and your possibilities - you should also be able to do it. Invest regularly, even small amounts. However, don't let someone else do it for you and a product you don't understand. You should have your finger on the pulse, that is, always inform yourself thoroughly, read all contracts, and it is best to get as much knowledge as possible on the subject in advance (here my book "A woman invests. Your path to financial independence" can help you). Never invest in a product that you don't understand! Should you develop all these habits? It would be great, but no, I won't be that drastic because it would put me off. I believe that the method of small steps is the best, so maybe set the bar quite low at the beginning. Regularity and regularity are very important in the finances and organization of your own budget. It would be nice to change your habits and the entire organization at an express pace, but it rarely works. I think at the beginning it is worth considering which missing habit costs me the most, or which can to bring me the most benefits and to start with. Take small steps and find benefits and motivation first, because otherwise you will quickly demotivate and abandon them, and you want to achieve success ... also financially!