Financial management is fundamental in paying off debt.
Ensuring that you’re practicing proper personal financial management is a never-ending task. Whether you need to stay on track with your debt management program, save for a major purchase, or need to grow your retirement fund, there are small adjustments you can make to speed up the process. Changing your spending habits, even slightly, can contribute to drastically improved financial management.
Tips to Improve Financial Management Habits
Build Spending Barriers to Save More
Discipline is the biggest challenge in building the habit of saving. Setting up certain boundaries can, therefore, help you build the discipline in how you manage your finances. Impose simple rules to control your spending splurges. Eat out every other Friday instead of every Friday. If you are unable to choose between two pairs of shoes, try not to buy any. If an unexpected expense occurs, postpone a non-priority expense for later. These are some ways you can approach such boundaries.
Make Your Work Lunches
Although it is more convenient to go to the deli by your office and pick up a sandwich for lunch, it adds up to be a considerably large bill at the end of the month. The more you spend on lunches, the less you have for getting rid of debt.
Cooking at home not only saves you that money but it’s also healthier for you. So, start planning your meals for the week, take the time to do your grocery shopping and put those pots and pans in your kitchen to good use.
Take Advantage of Every Saving Option Available
Start contributing to your 401(k) as early as you can. Most employers have plans that match your contribution, and this is like doubling your money for free. Even though you may still be working on eliminating credit card debt, don’t miss any opportunity to build wealth for your retirement.
Create Your Payment Schedules to Stay on Track
With internet banking, mobile banking and many other technologies available, it is easy for you to get reminders or track all of your transactions. Using features such as automatic bill payments, investment contributions, and savings plans, most of your finances can be taken care of like clockwork. Implementing a debt reduction plan becomes easier using the tools at your disposal. This not only ensures the ability to plan your finances better but also establishes good money practices that may result in better credit.
Stick With the Basic Good Money Habits
Building any good money habit starts with the basics. Create a budget, save every month, pay off your credit cards in full, buy only what you need, try to stay on track and just simply stick to the basics. Work to not allow consumer debt to get out of hand. Progressively work on the these habits to make your financial management better.
If you’re struggling to pay off debt, ACCC can help. Schedule a free credit counseling session with us today.
