20 Personal Finance Habits You Should Follow Right Now

20 Personal Finance Habits You Should Follow Right Now

If you ask my wife, I have a lot of bad habits.  I forget to turn the lights off when I leave the room, I forget to close the garage door, I eat too much.  She doesn’t remember many of my good habits, but I’m sure that I have some.  No, really, I’m positive.

Good and bad habits apply everywhere in life.  The ones you choose to focus on are very important when it comes to your personal finances.  Some of them can make or break you financially.  Now, I have to admit that I am not always on the good side of all of these habits, but I am dedicated to straightening up and doing the best I can.  At least that’s what I tell my wife.

Let’s see how many of the following personal finance habits you are on the good side of.

1. Tracking your income and expenses as well as keeping a budget.

2. Spending less than you earn every month.

3. Not buying items impulsively.

4. Keeping as little money as possible in your wallet.

5. Opening your bills as soon as you get them.

6. Paying your bills online if possible.

7. Take advantage of automatic paycheck deductions.  Pay yourself first.

8. Plan your meals in advance to resist the urge to eat out and to save money at the grocery store.

9. Contribute to your company’s 401k retirement plan (at least 10% of your income).

10. Increase your 401k contributions each time you get a raise.

11. Use your credit card only if you can afford to pay the entire balance at the end of each month.

12. Take advantage of coupons and online promotional codes.

13. Never use payday loans to cover temporary shortfalls.  They are pure evil.

14. Set, then regularly review your savings goals.

15. Do not try to keep up with the Joneses.  You never will.

16. Buy used vehicles.  If you do buy a new vehicle, try to keep it for at least ten years.

17. Maintain an emergency fund of between 3-6 months of living expenses.

18. Treat your household like a business.  Manage your finances and maximize your income.

19. Pay your bills on time to avoid high late fees.

20. Reward yourself occasionally by splurging on something.

Which side of the line did you fall on?  What can you do better?

What Tracking Your Spending Really Does
  • Tim Kiser says:

    Great post. I especially like #18 – treating household like a business.
    We can complete spending budgets but less common is a revenue budget. It helps to plan.

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