When it comes to planning and getting ahead, it’s a good idea to learn from those who’ve met their goals and have learned and practiced savvy skills – and for most, the biggest challenge to be faced is finding financial security.
Whether it’s controlling your spending or setting savings goals, there are many things you can practise to sharpen your financial skills – and with that in mind, here’s a roundup of five great habits that financially secure people share!
They avoid spending impulsively
For most, it can be difficult to avoid splurging when we see something we like or when we’re enjoying a fun activity or social occasion. However, one of the keys to financial success is the idea of moderation – that we enjoy fun within our limits!
To achieve financial security, remember that having peace of mind means following a budget, and maintaining a limit on your spending. By doing this, you can ensure that you don’t overspend, or run out of money before the end of the month.
If you struggle to avoid splurging, consider creating a set fund, allowance, or even a different bank account for fun – if you budget for this each month, you’ll have a set amount of cash that you can dedicate to buying whatever you like, and you can rest easy in the knowledge that you can spend this amount of money as you wish.
They save money regularly
While saving money can be a difficult task, the most financially secure among us are usually really good at just that!
Financial security doesn’t necessarily mean having lots of money in the bank, however – what it really means is that we have enough money to satisfy both our regular expenses as well as an unfortunate emergency expense.
Setting a savings goal for yourself can help you set aside cash for when you really need it – and if you need help to get started, why not try our 52-week savings challenge?
They pay themselves first
Paying yourself first means taking care of your financial priorities – and if you have a credit card, an open loan, or another form of credit, you’ll want to prioritise paying that off first.
By paying off your debts on-time or even earlier than expected, you can avoid paying interest on fees that may grow over time if you fall into arrears. By doing so, you can also improve your credit score – meaning that you can demonstrate your ability to repay a larger or longer-term loan should you ever need one in the future.
Financial security means certainty – and that means having a solid idea of what your income and expenses are, and how much you can set aside to maintain or improve your standard of living.
By keeping a budget, you can develop a great knowledge and sense of what your financial habits are, and you can plan to meet your short-term and long-term goals.
They make use of a financial planner
While a budget can help you meet your financial priorities and goals each month, it’s also important to have an understanding of what your long-term or yearly goals look like. The most financially secure people understand not only what their money habits are each month, but also how they can plan ahead to make their dreams come true.
Using a financial planner can help you map out your priorities in advance, and can also help you set aside cash for when you need it most.
If you’re ready to get started, why not download our handy financial planner?
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