INSIDE: Getting into a Financially Fit Habit
Getting into a Financially Fit Habit
By Brigette Nelson, VP of Finance
Many would probably agree that their spending habits are not ideal. Some say it takes between 21 – 23 days to break a bad habit. Here are three common habits and a suggestion to consider incorporating into your daily routine to help you strengthen your financial literacy skills!
Habit 1: You SPEND MORE than what you MAKE
- This problem is common among many teenagers. We earn money and spend it on things that we want in a given moment, rather than considering if the purchase is a wise decision.
- Consider assessing every item before you buy it. When it comes to anything you spend, ask yourself this question, “It this something I need or something I want.” If you don’t need it, then consider not buying it and focusing on saving for some long-term needs.
Habit 2: You DON’T TRACK your SPENDING
- Spending money on small expenses really add up! For example, you could be spending $5 on coffee every day and end up spending over $150 in one month and $1,800 in one year! By not keeping track of spending habits, it becomes a lot harder to see where your money is going.
- The Solution: One of my favorite ways to keep track of my spending is by writing it down in a mini journal. This allows me to continually be aware of how much I’m spending.
Habit 3: You DON’T CREATE a BUDGET
- Are you creating a budget to help aid in your spending habits? Making a budget is important because you can plan on how much you want to spend and save.
- The Solution: One of my favorite ways to budget is by creating a spreadsheet with my planned expenses (even the fun ones) and savings and then keep track to stay within my goals.
I hope this is helpful as you consider ways to improve your financial habits!
Brigette Nelson, VP of Finance