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5 simple financial habits to start right now

Creating financial wealth means taking the necessary time it takes to build positive financial habits and sticking to these changes for as long as needed. Maintaining this general drive for financial growth requires consistent willpower that, unfortunately, is not something that everyone has the patience for. If you’re one of the rare few who is willing to put in the work, here are five financial habits to start right now.

This is a guest post in collaboration with Alycia Coloma.

1. Monitor your habits

The daily coffees to-go, car fuel, and quick lunches all add up. We feel that we are entitled to these conveniences, but these purchases only strip us of money.

You can limit how many beverages you purchase by bringing coffee from home. These simple changes make a big difference as time goes on. You can end up saving hundreds by cutting out these purchases.

Paying your taxes is another important habit to monitor in order to avoid unnecessary charges like a failure to file penalty. Even if your current income is not what you’d like it to be, you can still provide yourself with more financial power to own and accumulate wealth by paying your taxes on time.

2. Pay your bills

Paying your bills on time is critical to financial wellness. Depending on what you owe, late and missed payments can be reported to credit companies, which can negatively impact your credit score. With poor credit, you’re less likely to get approved for loans and to have the means to pay for necessary expenses, creating more financial problems.

3. Keeping a budget is key to good financial habits

Perhaps you’ve kept a baby budget or a holiday budget, but if you aren’t monitoring your income all of the time, it will be difficult for you to clearly understand the amount of money you’re making, spending, and saving. By tracking these financial areas, you’ll have an accurate idea of your earnings and know where your money is going.

Better yet, you can use this awareness to start organizing your money. Potentially saving more and making room for financial growth. You can easily create a budget using a spreadsheet, but there are many software applications and digital aids that can help you track your money as well.

Cash and a calculator for tips on good financial habits

4. Get financial advice

Managing money is a skill. There is no shame in getting financial advice from a trusted expert who manages money for a living. Sitting down with a financial adviser may help you develop strategies to better your financial situation, pay back debt, and accumulate wealth over time.

There may be areas for you to make financial improvements that you haven’t even considered, like getting a reverse mortgage. A financial advisor can point out more possibilities to you. Consider setting up a consultation to see how getting expert financial advice might help you.

5. Be patient with the process

It is going to take time before you notice financial improvement. Paying off debt has many secondary steps involved, like negotiating with companies to reduce your payments. You might even need to take up a second job to make ends meet.

The point is that bettering your financial situation is a process. Be patient with it, so you don’t lose motivation to push on for better days ahead.

The Bottom Line on starting good financial habits

Creating new financial habits and sticking to them requires patience and willingness. You won’t see changes to your finances overnight. But in just a few months, you can see significant improvements in areas like your credit, your savings, and your future opportunities. Follow the guidelines in this article to pick up the healthy financial habits you need to keep your finances thriving.

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