The year 2020 has been predicted by financial experts to test many people financially and with the economy not looking to make a significant upward movement, below are 5 money habits you need in 2020. There are more of course, but these money habits will definitely give you a head start as you uncover other really beneficial habits in the coming year.
Create A Monthly Budget
Many people think a budget puts a restriction on their lives and spending but for you, you’ve got to see it as a powerful tool — a plan for your money. If you opt for a monthly budget, you only have to create one 12 times per year. That’s probably the easiest route to go, and it’s definitely the least time-consuming.
After sitting down to create your monthly budget, it’s imperative you revise it to ensure you’re putting a balance between your income and your expenses. Also, marking your budgeting date and a deadline on your calendar close to the end of a month, or at the beginning of the next one, is an important money habit.
Pay Your Bills on Time
This is an excellent habit to form for a few reasons. First, it’ll ease the load on your neck because bills accumulate faster than dust gathers and you really don’t want to be looking at a mountain of bills to climb. Secondly, it might save you from any possible late fee attached to some bills.
Prompt bill payments should help increase your personal financial habit in the year 2020. Prepare to cover your bills towards the end of the month and ensure you utilize the last week of the month to tick off and cover as much as you can.
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Spend Only Half of Your Income
This a financial intelligence golden rule. This also one of the best ways to get ahead in your finances. Spending really less than you earn has been dubbed by various financial scholars, as the number one rule of personal finance. Spending just about half of what you earn, allows you to save easily and forming this habit wouldn’t only help you live within your means but will help you stick to the actionable plans you have for your savings.
List Your Expenses and Stick to It
You should know what you can truly afford, and what is above your budget in the meantime — and have the wherewithal to create a life that fits within those bounds. If you have friends who are constantly, then you also need to activate your peer pressure resistance button. Listing your expenses at the beginning of the month, helps you stick strictly to a list of things that’s within your budget for that month, and postpone others to the next month.
Creating an expense list is a good financial habit and one that’ll you should look to imbibe in 2020.
Save Before Spending
This cannot be overemphasized. Spending before saving is a sign of a financial level that needs to be worked on. If you save before spending, you realize that your spending is better trimmed to fit what you have left to spend. If you try the other way round, you’d realize you may not save a dime at the end of the day.
It is super important you save money and then spend the rest after your savings is secured.
There you go; guys – 5 Money habits we think you need to imbibe in 2020 that’ll make it a year of financial greenness for you. You should also note that there are several apps that can help you make better financial moves if you make good research; you’ll several of them all over. We hope you found this article helpful. Let’s know.