Five healthy money habits to get in financial shape

Just like every healthy habit in life, getting your personal finances to a good place takes work and dedication. Building a strong foundation for your finances will set you up for success in your future.

We have put together five habits to get your financial life in shape. You do not have to take on every single habit listed here to get started on your journey. Just picking on one habit and working on it will improve your financial standing. Remember – perfection is the enemy of progress. Just get started with one or a few habits and work from there.

Our healthy money habits

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  1. Track your spending. Whether you use a spreadsheet, an app, or simply pen and paper, track every single cent you spend. Yes, all banking apps track your spending for you, but taking the time to track it yourself has two benefits. First, you hold yourself accountable for your purchases and can find areas where you’re overspending. Second, you can compare your records to your bank statement each month. If there is a mistake in your statement, you can catch it and report it before it is too late.

  2. Visit your budget weekly. A weekly check-in can help you reign in any runaway spending. Sitting down with your budget lets you know exactly how much you have left to spend on shopping or entertainment this month. Staying within your budget is a key skill to learn; it will save you a lot of hassle, headaches, and credit card debit in the years to come. Speaking of credit cards…

  3. Pay off your credit card in full each month. On average, Louisianians carry over $6,000 in credit card debt. With interest, this debt can really bog down your financial health. Only charge what you have and pay it off in full each month. Your pockets and credit report will thank you.

  4. Save money every paycheck. Whether you’re able to save $200 or $20, you should try to put money away every paycheck. This money can go towards an emergency fund, retirement savings, or a financial goal like taking a vacation or buying an expensive item. Getting in the habit of saving will serve you your whole life. As you continue on with this habit, you can increase your saving amount as you see fit.

  5. Avoid impulse purchases. If your anything like me, a trip to TJ Maxx means leaving $100 lighter with a bunch of junk disguised as home décor. These impulse purchases add up fast. They can be detrimental to your financial health and can feed into things like credit card debt. Everyone makes an impulse purchase every once in a while, but if you find yourself regularly walking away with items you didn’t plan on buying, it is time to find the root cause and end the habit. When do you make impulse purchases? It is at a certain store? Or maybe you tend to make more purchases when you’re stressed, or when you just got paid. Find the cause and take steps to curb the spending. Maybe you need to log off Amazon for a while, or make a shopping list and refuse to deviate from it. Stopping the impulse buys will help you a lot in your financial journey.

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