Are you looking after your financial health wellbeing? We are downloading finance apps more than ever, but are these apps helping us develop financial habits to complete our goals and add value when young?
How you manage your money early on in your life can and will lay the foundation for a strong financial future. Adopting good saving habits early on in your life is key. Let’s run you through our 5 key financial habits you should adopt when young.
Financial habit 1: Create and stick to a budget
To practice budgeting as a skill is one of the most importantly financial habits you can adopt. Budgeting is extremely important as it helps you control your spending, save, as well as track all expenses. By doing all of these, you’re on the road to make better financial decisions.
Financial habit 2: Set short- and long-term goals
It can be extremely hard to set a budget when the temptation to spend money on things that are not of value are displayed in front of you every day. That’s why it’s important to set goals – whether they are short or long term goals.
Goals allow you to form a more realistic plan. They enable you to track your progress, force you to prioritise, as well as create accountability for yourself — all things needed to be financially stable and secure.
Financial habit 3: Stay away from debts
It’s no question that borrowing money can be a lifeline for someone in desperate need. However, the issue with these is regular borrowers allot the money on less important expenses, which then leads to a more serious problem.
If you become reliant on this habit of borrowing funds even for everyday purchases, it’s when the never-ending repayments begins. Before you know it you’re up to your eyeballs in debt and the vicious cycle seems to never end.
Financial habit 4: Make savings where you can
It can be done simply by tracking your expenses, deciding what’s a priority and what’s not, and making auto savings, etc.
Making direct debt payments for all essential expenses is also effective. By doing this, it forces you to pay your bills first. Whatever’s left is for the next most important. This way you’re never behind on any major expenses.
Financial habit 5: Create an emergency fund
Putting away money for an emergency is always a great idea. Set aside an emergency fund for unexpected costs, such as medical bills, car repairs, or home renovation.
Do not hesitate to allocate money on anything that will eventually add up. This will then prevent you from needing to lend money from family members, payday lending companies, or even the bank.
Adopting all these tips will not only help you save money but also put you in a greater financial position in when you’re older. Test them out for yourself, for you and your family!
If you liked our ‘’5 Financial Habits You Should Adopt When Young’’ and took away some valuable information, check our blog space regularly for more updates on apps for finances and the best budgeting apps in Australia.