Establishing Good Financial Habits

Thursday, January 24 at 10:10 AM
Category: Personal Finance

We all tend to develop habits that provide a rhythm or structure to our daily lives. Once these habits are developed, they can be hard to break. Building good financial habits can provide a rhythm, or sense of control, for your financial life. Here are some good financial habits that can help you build a sound financial foundation and help you reach your financial goals.

  1. Make sure your financial information and records are organized. Knowing where important financial information is located and having a system for paying your monthly bills will save time and reduce aggravation.
  2. Use automated savings plans to save for near-term purchases and long-term financial goals. This involves having your financial institution or your employer transfer a set amount each month into your savings account to be available for a vacation or a major purchase. It also includes participating in your employer's retirement plan to save for retirement.
  3. Prepare a household spending worksheet. The process of preparing your first one will help you identify potential areas for reducing expenses. Analyzing your spending on a regular basis will help you monitor your spending and develop savings habits.
  4. Review all your bills and statements as soon as you receive them. Even if you are not going to pay the bills immediately when you receive them, by reviewing your bills and statements you can identify and correct any errors.
  5. Reconcile your checking account monthly. This avoids bouncing checks and fees that may be charged if your balance is too low. It is much easier to do this every month than to skip a month or two and then have to deal with multiple statements.
  6. Make credit card payments promptly and pay more than the minimum. Avoid late payment fees and reduce the amount of interest you may owe on unpaid balances by making sure your payments arrive before the due date. Paying only the minimum will cost you more interest, and it will take much longer to pay off the balance.
  7. Be sensitive to fees. Some fees cannot be avoided, but Arvest customers choosing to walk an extra block to use an Arvest ATM that does not charge fees to its customers instead of using an ATM from another bank can be worth the effort. Also, be sure to understand any fees that may be charged on your checking or savings accounts based on minimum balances or excess transactions.
  8. Learn more about handling your finances. The more you know the easier handling your finances will seem. Try to read the personal finance columns in newspapers or perhaps even subscribe to a personal finance magazine.

Your habit of a morning cup of coffee may be a good start to your day. A few good financial habits can be the start of a good financial life.

The views of this article are for general information use only. Please contact and speak with a subject expert when specific advice is needed.

Tags: Financial Education
There are no comments associated with this entry.

Post a Comment

  •  
  •  
  • Website Address:
  •  

Choose one or more categories to subscribe to:




Cancel