Having good financial health is everyone’s will, however, it’s not that simple for everyone. Unforeseen events happen, the country’s economic and political situation influences or you may just not know where to start to improve your situation. But don’t worry, with good planning your finances will improve.
Having financial health is nothing more than having good control of finances, balancing the amount received and the amount of expenses. Also, having good habits so that unforeseen events don’t destabilize you. Check out some habits to adhere to and improve your finances below.
6 habits to adhere to and have more financial health
1. Organize your finances
Do you know exactly how much you receive per month and what your expenses are? That’s the first step for you to start having more financial health. Write down your monthly earnings and your expenses, so it’s easier to get organized and end the month in the blue. To organize your finances you can use traditional methods such as having a notebook or using spreadsheets.
2. Cut the superfluous
Once you realize the real value you receive and where you’re spending it, it’s time to cut unnecessary spending. Realize where that money is going and try to avoid the triggers that lead to superfluous spending. For example, if you can’t go near a store x that buys something, change your route. Cancel marketing emails from promotions that lead you to spend on what you don’t need. Anyway, observe and cut those expenses.
Of course, everyone spends superfluously at one time or another, the important thing here is not to make these expenses a habit. Your self-knowledge will be very important to recognize where you are spending and know how to cut.
3. Pay attention to supermarket expenses
Taking advantage of the hook about cutting unnecessary expenses, the supermarket is often a place where we waste money. To do this, you can change some shopping habits:
- Prefer weekly purchases: if you make a monthly purchase it is very common for food to be wasted and no one wants to spend on what is not used, right?
- Make shopping lists: don’t even think about going to the market without first checking what you really need. It’s very easy to forget or even spend way beyond the programmed amount when there is no shopping list.
- Don’t go to the market hungry: it’s very difficult to hold back the consumer impulse when you go to the supermarket hungry. And with that, we buy unnecessary items that can be wasted and go over budget. So, have a good meal before you go shopping.
- Compare prices: try to observe and write down the prices of the same items in different supermarkets, you will certainly find the best place to do your shopping and save.
- Buy from small producers: there is definitely a fair near your house. Have you ever thought that vegetables and fruits can be much more affordable in them? You can take advantage of the xepa (end of the fair) to guarantee even better prices. In addition, there you find out what foods are in season and save even more. Not counting the long-term savings with your health!
4. Set goals to save
After evaluating the previous items, it’s time to set real savings goals. You can use a fixed x value or define that it will gradually increase the value. You can, for example, start by saving 5% of what you earn and increase as the months go by. The important thing is to set a value to start with and not save less than that. Make this habit a rule!
5. Create an emergency fund
Alright, we never expect that a financial unforeseen will happen to us, but they do. Layoffs, health problems, car overhaul or home repair are very common situations. Don’t let them catch you off guard. When something like this happens, the emergency fund will help you face these unforeseen events and it will be easier to maintain your financial health. Therefore, use part of the monthly savings target and allocate it to the emergency fund.
6. Avoid installments
Payment in installments can be a holy help at times, but at others, it can be a disaster for your budget. So avoid whenever possible. Leave it to buy in installments only when it is very necessary. Also, check interest rates and compare prices and payment terms from different stores. If your purchase is not urgent, how about adding the money monthly and paying in cash? So you don’t get into debt and still get discounts.