Updated: Jul 11, 2021
Money is defined as anything that is generally accepted as payment for goods and services. Money is very essential in our day to day activities and as such cannot be ignored. "Money answereth all things". The older you get, you begin to seek for money, manage your money and even seek to be financially independent. Whatever your goal maybe, financial literacy is necessary.
Here are 5 good money habits to start with.
1. Separate accounts
Have separate accounts for saving and for daily expenses. If you don't distinguish properly between savings and spending account, you risk spending out of your savings.
2. Budget weekly
Budget is one thing a lot of people don't take seriously which is bad. Budgeting helps you curb wasteful spending and indiscipline. Budgeting is one key way to stop impulse buying. It helps you to plan your week properly, let's say get groceries and all you'll be needing for the week before the week starts. This helps you control eating out too as it would help you make meal arrangements before the week starts.
3. Record keeping of savings and expenses weekly
Record keeping of your savings progress and expenses helps you account for each penny and analyze your finances properly. Record keeping helps to call you to order when you are over doing it and makes you accountable to yourself. Tracking your expenses and savings helps you gain control.
4. Prudent spending
Be prudent in your spending. Minimize impulse buying, also do not buy anything you can not afford several times. If you have to clean out your account to get something, then you can't afford it. Try coping mechanisms, such as getting rubber wristbands to pull when tempted to buy something impulsively.
Invest wisely, AVOID PONZI SCHEMES OR INVESTMENTS WITH UNUSUAL ROIs. The point of saving is to invest, not just for rainy days. So don't keep money in the bank accumulating bank charges, rather invest in things like real estate, transportation, food, treasury bills and stock.