5 Easy Money Habits to Start Right Now

Money Habits

You want to get your personal finances in good shape, but you’re not sure how you can do that. Here are easy habits that can help you reach this goal:

1. Follow a Budget

A budget is an essential financial tool. If you’ve been living without it, you should download one of the best budgeting apps and get your budget started. It will help you track your expenses, catch bad spending habits and find opportunities to save money on a monthly basis.

2. Save for Emergencies

Saving for emergencies is an easy habit that can be incredibly rewarding. All you have to do is look at your budget, see how much you can set aside every month, and put the funds into a savings account. You can even automate your savings so that the same amount gets pulled out of your checking account on a regular basis. Over time, you’ll build yourself a safety net. 

You should look into other backup plans while your emergency savings are low. For instance, you can learn about direct deposit loans. If you’re approved for this type of loan, you could have funds deposited directly into your bank account when you need to resolve an emergency expense. 

How do you get one? You can click here to learn about how to apply for a direct deposit loan online and learn more about them. If you apply for one and get approved, you’ll have another safety net that you can rely on.

3. Automate Your Bills

Making late bill payments — or missing them entirely — is a bad habit that you don’t want to keep. It can lead to late fees, service cut-offs, and other penalties. 

Get in the habit of automating your bill payments through your online banking. On the bill’s due date, the money will get pulled from your account and sent to the creditor. As long as you have enough in your account, the payment should go through. You won’t have to miss a bill payment again. 

4. Keep the Change

Every time you have loose change in your pockets, add it into a jar. As the weeks go by, you’ll watch the jar fill up with savings that you might’ve ignored. 

You can also do this with your digital “change.” Download one of the top round-up apps to move the leftover change into your savings account any time you make a transaction with your debit card. 

5. Pay with Cash

Whenever it’s possible, pay for your purchases with paper bills instead of pulling out your debit card or credit card. This is ideal for small, everyday purchases like coffees, lunches, or weekly groceries. 

Why should you take on this habit? Paying with cash feels different than paying with plastic. With cash, you can watch it disappear. When you swipe a card, you can’t see how much it removes from your account, which is why you might not notice when you’re spending beyond your limits. 

Also, when you pay with cash, you’re paying the exact price at the register. When you pay with a credit card, you’re paying with interest. So, you’re setting yourself up to spend more money on the same thing.  

Getting your finances in good shape doesn’t have to be hard. As you can see, it can be surprisingly easy.