There are money habits and then there are good money habits. The difference? You get to live life uninterrupted if you practice good money management habits. The pros are endless and the cons are almost none. Why a habit though? Because dealing with money doesn’t have to be boring. Make it fun with our list of good money habits to getting what you want most in life. Some peace and happiness perhaps?
Money that goes to interest is money wasted
Borrowing money to buy the stuff you can’t afford is not the best, better, or a good idea. Financing a purchase costs more than buying it with full payment because of interest rates. Instead of signing up for monthly payments with interest, you can save the money and purchase with the full amount. The extra cash that goes to interest is wasted.
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If you don’t want to get into debt, you will have to wait until you save the money. You can’t save money without a savings plan. You must set a goal and figure out how much you can save consistently.
Some banks have automated savings plans with rewards that are profitable. The CIT Savings Builder account is a good option for savings when you’re starting out. It holds the top interest rate for customers who make a monthly deposit of at least $100. It pays a high-interest rate if you make regular deposits.
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Stick to the list
Make a grocery list with the essential items and stick to it. It may be tempting to add more items to your cart as you walk around the store or even to buy candies placed near the cashier while checking out. These few dollars can go a long way in your savings. It is like sacrificing a few sweets or snacks to buy what you really want in the future.
Look for coupons
If you have a favorite dish at your restaurant, you can save a lot of money if you learn to cook it at home. You can visit the restaurant on special occasions and save cash during other times. Some people visit a restaurant only if they get a discount or promotion. You can also have a meal plan to plan your time and avoid ordering too many items.
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Apart from using coupons, cashback offers and not missing out on festive deals like Black Friday or Christmas specials, you can download apps like Dosh that give you cashbacks or apply coupons automatically. The Ibotta app will provide you with discounts if you send your grocery bill.
Decrease expenses and increase income
Now that we have seen some ways to save, we can increase the savings by simply increasing the income. Though it may be tiring to work part-time, overtime or on weekends, the few more hours and sweat will take you closer to your dreams and desires. You can also ask for a raise or look for a better-paying job.
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We live in a culture that normalizes debt. If you want to stay away from debt, you must not compare your lifestyle with others who use credit — there will be a big difference, obviously. However, you don’t have to give up or try to keep up with your friends on Instagram. You will get your rewards in the long run if you follow these good money habits.