BUDGETING

Positive Money Habits: A Proactive Approach

Building money habits early can help lead to long-term financial success. It’s important to identify what positive choices you should continue or start versus decisions that could negatively impact your financial wellness. Let’s review a few good habits that can be maintained throughout your financial journey.

Make building your credit early a priority.

Some people choose not to start building their credit until they need it. This could put them at a disadvantage when it comes to getting approved for a loan or line of credit if the financial institution prefers to lend to those with an established, positive credit history. It’s ideal to start building credit the moment you get the opportunity to do so and understand how the process works. Be sure to reach out to your credit union or bank to see what options, education and benefits they have.

Create a budget and track your expenses.

No matter what your current income situation is, everyone needs to have a method to manage their funds. Figure out what works for you whether it’s utilizing apps, tracking in spreadsheets or keeping a budgeting notebook. Monitoring the flow of funds through your account will help you stay on track.

Limit unnecessary spending.

It’s OK to treat yourself from time to time but be sure to be aware of your needs and wants when making purchases. This will help you stay on budget and keep you headed on the path toward your goals. Try to set aside a specific amount each month for spending so you can hold yourself accountable, prevent overspending, and maintain a healthy balance between spending and saving.

Pay yourself first.

The hardest part about establishing savings is often getting started. Review your budget and consider how much you can allocate to a savings account. Set up an automatic payment to your savings account on payday or make a habit of paying your savings account first when paying your bills. Remember, the harder you work to save what you can now, the more resources you’ll have to support yourself in the future if unexpected costs arise.

Take advantage of student, employer and loyalty discounts and buying used.

While you're in school, your student ID could give you access to a variety of discounts at retail stores, restaurants and websites. Always ask if a merchant offers student discounts. You never know what a company is willing to offer those pursuing postsecondary education. Also, don’t feel pressured to buy brand new books. When possible, buy used books at lower prices. Just remember to verify the edition of used books to ensure they match course requirements.

These are just a few habits you can start and maintain to help prepare yourself financially. Be proactive and consider reaching out to your financial institution to see what financial education opportunities they offer so you can continue growing your knowledge about financial topics. If your financial institution doesn’t offer financial education, explore free resources online or in your community to learn more. The more you educate yourself now, the more grateful your future self will be. The road to financial wellness is paved with the tools you choose to use, and it’s up to you to discover them.

Sources:

https://www.citizensbank.com/learning/10-healthy-financial-habits-college-students.aspx