Everyone has some bad financial habits, whether it is unconscious acts, laziness or a result of wanting convenience. These financial habits cost the average American thousands of dollars each year. Iowa State Bank want to help you rescue your finances by sharing some tips that can help you break those bad habits.
Take a minute to sit back and look at the money that flows in and out of your checking and savings accounts. Are there things you could eliminate, change or do without to help your finances? Try these bad habit breaking tips to put some money back in your wallet.
Form New Habits. Instead of trying to eliminate bad financial habits, try creating new, financially sound habits to replace them. By replacing the old ones, it will prevent you from falling back into your old habits for lack of having something to do. Studies show that it takes 21 days to break a habit. Just remember three weeks to a better you and a healthier wallet!
Commit To The Change. As you’ve probably heard, it’s easier said than done. Yes, that is correct, but nothing will ever change about your finances unless you are committed to making the change. Create a plan of how you will spend your money and post it in prominent places for a constant reminder of the new habits you are trying to implement into your life.
Distinguish Between Actual Wealth and Credit. Avoid making short-term credit card purchases that are unreasonable to your monthly salary. By doing this, it ensures that you can pay the balance each month and avoid accrual of long-term debt and interest.
Take Only The Cash You Need. Going to dinner or shopping? Only take out the cash you need and leave your credit and debit cards at home. This will force you to think before spending and will enable you to make more sound decisions and get the most bang for your buck!
Now that you have some tips to get your bad financial habits under wraps, it’s time to utilize them. Make a change and eliminate your bad habits this April for Financial Literacy Month and live a happier, less stressful life.
We hope to hear your financial success story soon. Good luck from Iowa State Bank!