These Simple Financial Habits Can Make A Huge Difference In Your Life
/In the modern world, there are so many wonderful ways of being able to save money and keep track of your bank balance. Practicing healthy financial habits is essential to your overall well-being, and even more so since the economic fallout due to Covid-19. Whether it is brainstorming ways to make more money or being more mindful with your spending, be sure to schedule a weekly money date in your calendar to reflect on ways you can elevate your financial well-being. Here are some ideas to help you get started.
Practice Mindful Spending
In 2019, the Federal Reserve of St. Louis released a report detailing why most people do not have a spending problem - they have an earning problem. The report showed that between 2002-2019, the cost of food increased by 38% and inflation increased by 2%. This is in contrast to wages increasing only 0.3% during the same time period. While other money blogs insinuate that your spending habits are the problem, at Money & Mimosas we know that this is mathematically untrue.
With that said, we also recognize that overspending can occur. Therefore, we recommend practicing mindful spending and being a conscious consumer. This means taking five deep breaths before you make a purchase. It also means spending money according to your values. For example, supporting black women-owned businesses, LGBTQ+ owned businesses, companies that practice safe environmental practices, and so on.
You have to be honest with yourself about whether or not your personal spending is out of control and damaging your financial health. If you recognize that you need to cut back, check out this article for ways to help you curb your spending habits.
If your spending is just fine, then we recommend brainstorming ways to increase your earnings. Here are some ideas to help you get started.
Get into the Habit of Saving
At Money & Mimosas, we recommend that during your weekly money date, you pay yourself first. This means transferring a percentage of your income into a savings or investing account. We know that some weeks this may not be feasible, but strive to make this a habit that you commit to and soon you will reap immense rewards. Similar to a fitness habit, it is more about the discipline and creating a lifestyle change.
There is no shame in the amount you are saving. In the beginning, you may be transferring 1% of your earnings to your savings account. As your earnings increase, you can gradually bump up the percentage. For more guidance on savings, check out our article on savings habits.
Look for Special Offers
It can be helpful to keep an eye out for special offers and to come up with ideas that will help you reduce costs. One of the best ways to do this is to look for local offers and check online for promo codes before making a purchase.
And there it is - simple financial habits that can make a huge difference in your life. Do you have a tip that could help others? Please share it by leaving a comment below.
