Whether conscious or not, and whether you like it or not, your habits make up 40 percent of your daily activities. Don’t take my word for it though – It’s been scientifically researched.
What does this tell us? Much of your financial success comes down to your financial habits. So what should you do? Get some bloody good financial habits. Lucky you – you’ve come to the right place.
Sandy Hutchison, Founder and CEO of Career Money Life, shares her money habits for financial success.
- Take the time to understand the terms and details of your credit card. Know the interest rate you will be charged, and if you can’t pay your bill off in full every month, think about how long it will take you to pay it off, and add the cost of the interest to the purchase price of the item you want to buy.
- By doing this you will realise the “bargain item that’s on sale for half price” may not actually be such a bargain at all once you pay all the interest fees. Use your credit cards to manage your cash flow and keep your money earning interest for longer in your bank, not as an ongoing loan plan. It can make a massive difference to your spending.
- As soon as you can afford it, start putting money into superannuation, most people don’t have enough and won’t have enough when they retire.
- On top of that, we are all living longer, but finding it hard to stay in roles post age 50 -55, so maximise your super during your big earning years.
- Have a savings buffer “Rainy Day” account, ideally enough to last for 3-4 months. If you get made redundant, you need to still pay your rent/mortgage, pay your bills, and living expenses until you find a new job.
- This can take anywhere from 1 to 12 months or more, if you are in a senior role. If you don’t have any sort of savings to carry you, it can cause severe financial stress, which can also impact your health both physical and mental.
- Finally, research shows people who have experiences are happier than those who buy material things.
- Think about ways to enjoy yourself without spending money, such as going on a bike ride, a trip to the beach, cooking, spending time with friends, playing sports etc
This article is originally published on the CashMaster website. Click the link to read more money habits as shared by Australia’s wisest.