The Money Saving Habits We All Need To Adhere To
/Similar to fitness, our habits determine our results. If you wish to run a marathon, you will need to adopt a habit of exercising on a consistent basis. If you wish to start and grow a thriving business, you will need to develop and maintain specific financial habits. Here are a few habits to help you get started.
#1: Pay yourself regularly
If you don't have a high-yield savings account, go ahead and set one up. Then make it a habit to pay yourself monthly or weekly. You can set up a direct debit to pay money into your savings account from your regular income or manually transfer it each week or month. It doesn't have to be a lot, but those regular deposits will add up over time, no matter how small they might be.
Additional resource: Watch this one-minute video to learn about high-yield savings accounts.
#2: Regularly put money into your freedom fund
Your freedom fund is an account dedicated to living your dream life. This might be a portion of what you might otherwise have put into your regular savings, as discussed above. These funds can be used for fun trips, shopping sprees, or for times when cash is running tight. As a freelancer, there will be periods when your cash flow slows down. Your freedom fund will give you the financial cushion you need to remain comfortable - and free.
#3: Compare prices
Don't assume you have to pay the premium on your monthly bills. When your renewal dates roll around for your insurance, compare prices with other companies before committing yourself to another twelve months. Regularly compare utility prices, as it might be that you can find cheaper companies elsewhere. And if you're ever looking to switch mortgage or other loan providers, compare lenders. For example, Altrua Financial is known for offering the lowest kitchener mortgage rate. If you are in the Ontario, Canada area check them out and let us know about your experience.
Please note, we are not affiliated with Altura Financial. We always recommend doing your own due diligence.
#4: Store your spare change
If your pockets are weighing you down because of all the loose change in there, do something with those coins. Sure, some of them might not be worth very much, but if you add them to a savings jar, your funds will add up. When your jar is full, take it to your bank, and add your loose change to your savings fund. Nick and I did this and we ended up with $85 which we used for a fun date night.
#5: Track your finances regularly during your money date
As we always recommend, have a weekly money date! Make it a habit to check your bank statement, and if you realize you are overspending in certain areas, find ways to cut back. And check your savings account too, and compare it to your savings goal for the year to track your progress.
Learn more: What is a money date? Watch this short video to learn more.
Freebie: Click here to download your free weekly money date guide
#6: Practice mindful spending
Mindful spending is the art of making conscious financial decisions. If you find that you are an emotional spender or overspend in areas, then it is time to be more intentional and purposeful. Learn about your money love language to better understand why you make these financial decisions and then create a plan to shift them. Even if you don’t believe you overspend, we all have room for improvement when it comes to elevating our consciousness with money and being more intentional.
Learn more: Discover your money love language and what is says about your spending habits
About Money & Mimosas: Money & Mimosas was started as a passion project by Danetha. A former NFL cheerleader turned entrepreneur, she started blogging as a way to combine all of her passions into a career. Money & Mimosas is now enjoyed by readers in over fifty countries with the same dream of achieving financial freedom without living frugally.
