Money Minutes | General Electric Credit Union Blog | Financial Resources

 

5 Smart Money Habits To Practice

May 14, 2018 | 2 minute read

 

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Conquering your financial goals isn’t a simple task, but creating, and sticking to, smarter spending habits will help both your money go further and you get closer to financial freedom.

  1. Make a BudgetMaking a budget is one of the most crucial things you can do to reach your goals. Gather the pertinent financial information, compare your sources of income and expenses, and create your monthly allowance based on your goals. Live within your means and don’t overspend.

    Use online tools to view your financial picture, manage accounts, expenses, bills, loans, etc, to make your budgeting process easier and more efficient.

  2. Automate Savings – Automating your finances allows you to grow your financial portfolio, while also alleviating the stress of bill payments and over drafting your accounts. Contributing to a 401(k) or setting up automatic transfers to different accounts frees up time, guarantees your financial success, and can maximize your savings.

  3. Avoid Impulse Buys – While little purchases do add up over time, the one-time large price tag purchases put a fast dent in your accounts. Wait before you buy! Set a spending limit, and if the item isn’t a necessity, wait at least 24 hours before purchasing.

  4. Pay Bills Right Away – If you aren’t going to set up automated payments, be sure to stay on top of your due dates and pay your bills immediately after receiving. Late payments are one of the biggest mistakes you can make to damage your credit score – not to mention the best way to rack up additional fees. Choose an online bill payment service to take your bill payments to the next level; these services are often free and allow you to see and manage your bill payments in one online account.

  5. Review Bills for Errors – As you are making smarter decisions with your money, it’s also important to monitor your expenses for mistakes. Double check your bills to make sure accurate charges are being reflected, to help reduce your chance of overpaying and keeping more money in your wallet!

 

With anything, discipline and establishing good habits will lead you to positive results. By putting into practice these clever money habits, you can be on your way to the financial freedom everyone seeks!

Ready for more? Read more on easy ways to save money this year.