The new year is just around the corner, which means it’s time to put together our vision boards and write down our goals list for the coming year. Yet, an important aspect that we often overlook in our New Year resolutions is one’s financial wellness. The latter is an integral part of a successful life. It’s as important as physical wellness.
Hence, we compiled a list of 4 healthy financial habits to set you up for success in 2024.
Habit #1: Budget, budget, and budget!
The first step to becoming financially healthy is having a budget. Managing your finances can sound a little intimidating, but if you know how to budget, then you’re good to go.
A budget will help you understand how much money you have available to spend, which will allow you to make informed decisions about how to spend your money.
How? Our budgeting tool can help you track your spending with ease.
Habit #2: Pay yourself first
Paying yourself first should be at the top of your 2024 to-do list. The method means setting aside an amount of money for savings and investments before paying bills or spending on non-essential expenses. It’s money that you invest in your dreams and goals. It’s a powerful way to prioritize your financial well-being and build a solid foundation for financial security.
Easier said than done? Well, you can start by building a solutions fund to be financially prepared for unexpected emergencies and setbacks. So, in the coming year, aim to set aside 10% of your income each month solely for trying times.
Pro tip: An effective way to make sure that you pay yourself first is to have two separate bank accounts: one for your actual spending and one for saving. You can thank us later.
Habit #3: Cross out your debts
Make it a habit to get rid of your debts as soon as you can to avoid paying high-interest rates, since they can be a financial drain. Prioritize paying them off.
How? There are different ways to effectively pay off your debts, check out this piece to know more.
Habit #4: Join the investment game
As inflation rates are constantly rising, it would be smart to grow your money. An effective way to do so is to invest regularly and for the long term. Consider setting aside 10 to 20 % of your income for investments, such as stocks and mutual funds. This strategy will help you build wealth over time and provide financial security in the future.
The wrap-up
According to research, adopting a new habit takes around 18 to 254 days, and an average of 66 days for this new habit to become an automatic behavior. So, it takes time and that’s okay. Start with one habit at a time. And, don’t forget to Start paying yourself first and watch your wealth grow over time. Small amounts of money eventually add up. Happy new year, folks!
