­Financial Habits Tha­­­t You Should Adopt Before the End Of 2018

You might have made a New Year’s resolution right at the start of the year, like most people. But just because you vowed to stick by it, it rarely actually happens. Look, we get it. Giving up those mince pies so suddenly is a hard feat, which is why so many of us never actually make it happen. 

We often make resolutions, but rarely follow through. However, it is important to adopt certain habits before this year comes to an end. Discussed below are some of them:

One key financial goal:
You may have a specific budget pattern, but apart from that you need a specific financial goal for the entire year as well. You can seek assistance from any financial planner to set the right goal for you based on your income and expense. This will help you create financial stability.

If you do not want to spend additional money on financial planning services, then you can always conduct an analysis on your financial habits and future plans. This will help you determine your goal for the year.

Weekly credit payment:
In order to save yourself from paying heavy amounts in the end of the year for your credit card, it is wise to make weekly payments. This way, you will save good amount for the holiday shopping season. Also, by the end of the year, you will not sink yourself in debt.

You cannot minimise your credit card expenses overnight as you are habituated to it, but you can definitely do so gradually. Plus, this keeps you restricted to a specific budget and you do not over-spend.

Next, it is important to keep all your credit card documents sorted so that you are updated about the changes. For example, if a company is charging you extra pounds you can easily figure that out. As a UK resident, you might be aware about the PPI scandal. Even today, people are opting for a free PPI check to ensure that they are not a victim of this event.

Daily journal:
In order to change a particular habit, you ought to increase your awareness about that subject. For instance, if you are finding a solution for your financial imbalance you need to figure out your bad monetary habits that break you.

You can track this by keeping a record of your daily spending. You can sit at the end of the day with a book and list down all the expenses you have incurred from morning till night. This way, you will get to know where actually your money is going and then determine where you can cut them down.

It has been observed that people who follow the above method for a month get habituated to it and have better control over their finances. You can start with it on a weekly basis so that you get proper update on your finances by the weekend. This can eventually turn into a month-long process and you can easily analyse your major and minor expenditures.

Based on this analysis, you can prepare a schedule which helps you to eliminate all your loop-ends.

Save some for future:
You have a steady monthly income today, but once you start aging, that is post fifties, working all day long can be a tricky task for you. This is one key reason why you should start saving for your future as soon as possible.

Not much but you can always save 10 percent of your income in form of your retirement funds. There are certain employers who contribute to it, so you can always ask if your workplace has this provision and accordingly start saving.

If possible, you should also create an emergency fund so that you are not broke in case of crisis. It is a wise move to save money rather than spend it on an unnecessary desire.

During festivals or when you perform well at work you obtain bonus and after getting it, it is a matured move to save that sum rather than spend it at an expensive pub partying with friends. At times, you may also get paid for working over-time, so save this perk as it can be useful in purchasing something really important to you.

Be organised:
It is not only important to keep your home organised, but also your finances. It becomes difficult to manage finances if you are cluttered and do not keep them sorted. Spend 15-20 minutes on a weekly basis (daily if possible) and think of ideas in which you can pay-off your bills, update your bank account and the net worth that belongs to you.

One way in which you can keep your finances sorted is to check all your mails and bills as and when you receive them. Once you enter your home, sit and sort all financial documents, file them once paid and if payment is pending then stick them on your board so that you are reminded to pay it.

No-spend month:
Every third month set a rule to make no additional spending except the basic travelling and grocery that you ought to spend. In this month, do not go out for parties, on a shopping spree or any weekend trips.

It is essential to get your finances straight and keep track of them. Although some of us are not that good at maths, it does not justify cutting your living expenses where possible as it can land you in trouble in the long run.

Adopting these financial habits can secure both your present and future, so it’s worth adopting these lifestyle changes now!