Friday, January 12, 2018

8 Habits Considered to Be Financially Smart

8 Habits Considered to Be Financially Smart

In New Year, everyone wants to be financially successful and have fulfilled life but not everybody ready to pay the prize to be financially solid. There is no one who wants to be financially down rather to have money and more abundantly for immediate satisfactions, to pay bills, have a save in bank account every month and buying expensive apartment to live a comfortable.

Have you ever discovered and check your bank account at the end of the month, and be shocked because you don’t know how you’ve spent all your money, or where all your money went. This could be the question bordering your mind whenever you don’t know how you manage your finance.

The way we plan our finance in the previous years should be different the way you will be financially smart and viable this New Year. From paying bills or debits, or buying what are not on your budget; spending your money wisely you should be a good habits to develop and planning that keeps you in financial shape, if you want to break bad habit of money spending and get on more solid financial balance.

In this post, we will analysis some steps to help us manage our finance and to breakthrough toward our spending habits. We could all stand to improve our finances, and the way to do so is to be more conscious about your spending habits,
learning from the past to enable you learn a smart money habits, and have more profit in whatever business or profession you’re doing.

Have a Written Budget

Many do fail in planning their finance. If you don’t have any written budget you will not able to spend wisely. Having a written budget helps you know who and who you have to pay every each month and how much to pay.

When you have a written budget, you will able to know where exactly your money is going and know what you have left to able to do other things.

Best of all is that your budget is your road map to financial success, it helps you to have direct control over your money and where you want it to go. You can decide or make decision with your budget whether to save, how much to spend on each expenses everyday or weekly or every month.

Since you know your monthly or daily income and how your money comes, then you have to make everything in written included in your budget every single spending on your way to office, transport each day, weekly or monthly and other expenses. Doing this you will able to know exactly where your money is going and you have good smart spending habit.  

Avoiding Immediate Needs

It could be tempting when you went to a shopping mall and saw everything in stores flashing, and you know such is not in your budget, then you pick on item you knew you didn’t need of them for now just to satisfy your immediate wants. Would buying those items make you happy? Why do you think you want to buy them? Asking these questions within yourself will make you avoid emotional purchases, which will often lead to buyer’s remorse.

Buying an item to satisfying your immediate need will something leads to regrets and you need to make a rethink before conclude to buy such good even if is not in your budget.

If at all you want to make purchase, the best financial habits to use is 24-hours rule, which mean you will go home, think about the item and check your budget. And, if after 24 hours later you will still really want it and can afford it, then go ahead and spend the cash to purchase.

Paying Your Bill On Time

Paying bill on time make you responsible, and let you avoid of debts. Late bill payments can seriously affect your budget. For instance, if you choose to be paying bills each payday, or you’re consistently paid on the first or every each month you were pay, will make it easier for you to remember to make your payment on time.

You can make a list of your recurring bills and their due dates, or setup a calendar on the wall to note due date of some bill or debt you need to pay on time so as not to affect your budget.

Don’t Use Debit/Credit Card for Payment 

Having been a victim for some time, then discovered that using debit or credit cards for payment will eventually make someone to spend more than you budgeted. 

The best ways is using a cash to pay bills. Making payments with cash ensure that you are money-wise. If at all still want to use credit card to make payment for groceries or bills every month, you still discover that you are overspending.

It is just too easy for someone to spend more than you anticipated when you carry debit or credit cards about to make payment. This is reason rich people don’t want to be using debit or credit card and not only that, also for security purpose too.
Sticking to cash for payment will ensure you never spend more than you budgeted and it is possible to do. If you must use credit card, be SMART!

Save Money Every Month

This is a good smart habit to be financially successful but some people overlook it. In your dealing, your budgeting should include how to have a save for every penny you earn. You should have habit to save for emergencies, holidays, retirement and for future.

There are some people that they do have money deducted from their salary for saving every month ending when they know it is for their saving, and there is no excuses for such money. 

Another best trick that can be use to save is company you work with deducted money paying into your salary account automatically every each month, you can never make excuses about not having such money or getting the money and this also is automated saving.

Therefore, to be financially stable this year, you need to have saving habit and you don’t have any excuses for not doing so.

Stay Within Your Means

It is dangerous for someone not to live within his/her resources. You know your limits and comparing yourself with others, you will find out that you'll spend all the money in your hand and go against what you have budgeted.

Though many of us wish we could live in a bigger house, drive a nice car and have a good mansion but that doesn’t mean we have all the money to make change of all these kind of lifestyle happen.

If one person has enough money and can afford to have expensive car and mansion, while another can afford to have a land for apartment at least for now. Having different income necessitates different lifestyles, and living outside your means is a bad habit that can jeopardy your entire budget.

Whatever your incomes, salary, or your earning, the key to financial success is to stay within your means and not to spend more than you can afford.

Keep the Communication Open

The issue of financially stable is a person things but situation whereby you are in partnership with someone in the business, or a joint account with your spouse, this means you need to keep the communication open and both have to plan your budget.

You and your partners should have a regularly check up on your budget, if you didn’t spend more than you budgeted, or whether you are in-line in your budget. It helps you to both know your financial position.

Communication is essential in all area of relationship, so it is in finances. If you both have joint account, you must open up to each other how the spending is going, but hiding money is a habits that usually causes misunderstanding and fighting.

Keep the line open and have regular meetings on your budget. The best is to make at least monthly meeting on your spending budget if necessary, and add event that both will agree and you won’t forget in your calendar.

Do Your Account Balance Regularly

This is very necessary to do every month. Checking up your account regularly make you know actually amount you have left to spend. If you are into online banking, you can be checking on your account balance daily, weekly or monthly. 

Don’t always rely on the balance your banks usually send to you whenever you make payment because sometime they give wrong figures of balance. There might be transaction that have not yet been posted, online payments or bill you made that are not reflected, and some checks you have written that is yet to be verify.  

Doing this will make you keep intact with your budget and spend smartly, which will make you a financial success.

Hopefully, you have gain one or two thing that you can master today to learn how to spend smartly in the New Year. You don’t need to know all the steps at a go, but taking them slowly after the other before you know it, you will be on the path to financially healthy.

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