5 Financial habits to adopt in 2019
Keen to improve your financial health this year? Here are five practical habits to help you save money and get you on the road to achieving your financial goals.
1. Keep tabs on your spending
A quick takeaway here or a new gadget there all add up eventually, and if you don’t keep tabs on what you’re paying for, you could end up blowing your budget without even realising it. So, start tracking your spending. It’ll give you a clear idea of where your money is going each month and help you to avoid overspending. Plus, you’ll be able to identify any unnecessary expenses and cut back accordingly.
2. Avoid unnecessary debt
Not all debt is bad. A home loan, for example, can be considered an investment. But it is a good idea to avoid putting yourself into debt unnecessarily. Before you pay for an expensive item on credit, it’s worth asking yourself whether it’s something you really need or simply something that you want. There’s nothing wrong with treating yourself now and then but try to stick to items you can afford, or save up for the ones that are a bit more pricey.
3. Pay your bills on time
Your credit score is a good indication of your financial health and it affects your ability to access finance, such as a home loan. To keep yours looking healthy, always pay your bills on time each month. Being late with payments – or worse, not paying at all – is one of the quickest ways to hurt your score.
4. Save, save and save some more
If you’re not already saving, now’s the time to start. Whether you’d like to build an emergency fund or put a bit extra into your retirement fund, don’t be discouraged if you can’t afford to put away a sizeable amount each month. Start by saving whatever you can and build up over time. As we mentioned earlier, it’s a good idea to see if you can cut back on any unnecessary expenses in your budget – and if you can, stash that money in your savings too.
5. Keep your policies up to date
Review your insurance policies annually to ensure that your cover still meets your needs, particularly if your circumstances have changed e.g. you’ve gotten married, had a baby or are now supporting elderly parents. And if you have life cover, remember to check that your list of beneficiaries is up to date.