5 New Money Habits to Create in 2024
Minute Read
If you are up to your eyeballs in holiday debt or just looking to save more money, the new year is a great time to start creating new financial habits. Set yourself up for financial success in 2024 by implementing the habits below!
Like most things we do, the way we spend our money usually comes from habit. Think about everything you do on a daily basis, from brushing your teeth to exercising; consistent practice helps us stay on track. The same is true for your finances. To have better control over your money, you need to create and practice healthy financial habits.
1. Set realistic financial goals.
If you have $30,000 in debt and make $40,000 a year, having a goal to pay off your debt in one year is not realistic. But you can establish a goal to consolidate your debt. Using one of our low-interest credit cards to avoid paying additional interest on your debt or taking advantage of a Members 1st Visa Credit Card Balance Transfer are great ways to get started.
It’s a good idea to review your budget on a regular basis to see how much money you can put towards debt. Be honest with yourself and think about what you can realistically afford. If you have trouble coming up with that number, read through our budgeting tips or learn how to set financial goals.
2. Create an honest budget and make positive changes to it.
What do we mean by an “honest budget?” An honest budget is a list of your expenses separated into wants and needs. Your “wants” are luxuries that you can almost always cut out altogether or drastically reduce. This can help you pay down debt faster or even save a little money if you don’t have a lot of debt. Your “needs” are just that, things you need to survive such as housing, transportation, utilities and food. Finding ways to reduce these expenses can also help you allocate more money toward paying down debt.
How can you cut your spending while still meeting your needs?
You may be able to refinance your mortgage to have a lower monthly payment.
What about your utilities?
Shop around for your electricity, internet or phone provider.
And your groceries?
Save money by buying canned goods in bulk or shopping at discount stores.
3. Review your spending every month.
Most of us know what we can cut from our “wants” list easily and quickly. Making a budget helps us with that and so does reviewing our monthly spending. It’s nice to go out for coffee or grab takeout every now and then but setting a goal of only buying those things a few times per month could make a big difference. Reviewing your monthly spending helps ensure you are staying on track. If your monthly budget doesn’t shake out the way you want it, add up the dollars you overspent, and work on reducing your spending for the next month. It may take you a few months to get used to your new budget, which is okay. Creating new money habits is a marathon, not a sprint!
4. Wait 48 hours before making a purchase.
A lot of us are impulse buyers and like to feel instant gratification when we see something we like while shopping. (i.e., we don’t need it, but we want it, so it goes in the shopping cart anyway).
If you go to the store for a specific item, only purchase that particular item without adding anything extra to your cart. Put any unnecessary items back on the shelf. Give yourself two days to think about the items you want. Nine times out of ten, you will realize they weren’t necessities. Figure out what you would have spent on them and use that money to help pay down debt or increase your savings account instead.
5. Get rewarded for buying the items you do need.
From 1.5% back on all purchases to 2% back on groceries, we have Visa cards that reward you when you spend. There are purchases you have to make, so why not save money when you do!
Creating new money habits can be overwhelming, but you are not alone. You can always contact one of our associates or come in and visit them in-person at any of our almost 60 branch locations. Our associates would be happy to help you take control of your finances this year and beyond!
