Lifestyle
As the new year approaches, it’s natural to start thinking about fresh starts and setting goals. One area where we could all use a little improvement is our finances. After all, how we manage our money has a huge impact on our peace of mind, daily life, and ability to achieve our dreams.
Let’s be real — no one’s perfect when it comes to money. We’ve all made mistakes or picked up bad habits along the way. But the good news is, it’s never too late to change. In this article, we’ll tackle 5 common financial habits that might be holding you back, and share practical tips to help you start the new year with a clean slate and a clear financial plan.
1. Overspending
Overspending happens to the best of us. Maybe it’s a splurge on the latest tech gadget, eating out too often, or not keeping tabs on where your money is going. But when spending outpaces saving, it can feel like you’re always playing catch-up.
To take control, start by setting a realistic budget. Knowing where your money is going is half the battle. Look for spending leaks, like unused subscriptions or unnecessary expenses, and cut back where possible. Pause before you buy by waiting a few days. This will give you time to decide whether a big purchase is truly necessary.
2. Not saving enough
We’ve all been there — thinking, “I’ll save more later when I have more to save.” But life doesn’t wait, and building a safety net is crucial for emergencies and long-term goals.
Start by setting a clear savings goal, whether it’s for an emergency fund, a vacation, or a downpayment for a car. Treat savings like a bill you can’t skip by setting up automatic transfers to a savings account. To boost your efforts, look for ways to increase your income, such as taking on a side hustle. Finally, track your progress and celebrate small wins to stay motivated.
3. Ignoring debt
Debt can feel overwhelming, and it’s tempting to just ignore it. But turning a blind eye only makes things worse. Addressing debt head-on can be empowering. Begin by prioritising high-interest debt, as it costs the most over time. Simplify your payments by exploring debt consolidation or refinancing options to lower your interest rates. Create a plan to make consistent payments, no matter how small, and stick to it.
4. Impulse buying
Impulse purchases might feel good in the moment, but they can throw your budget off track. To manage this habit, we're going to recommend you wait before you make a purchase once again and give yourself time to cool off before making big purchases. Unsubscribe from promotional emails and avoid browsing sales if you don’t truly need something. Consider using a debit card or carrying cash for planned purchases to help you stick to your budget. Before you buy, ask yourself, “Do I really need this?” If the answer is no, it’s best to pass.
5. Not tracking expenses
Ever check your bank account and wonder where all your money went? This often happens when spending isn’t tracked. Why not use the spend analysis feature on our app? It helps you identify spending patterns, compare expenses across months, and more. The feature also organises your spending by category or merchant, making it easier to see where adjustments might be needed. Finally, don’t forget to regularly check your statements for errors or unauthorised charges.
Breaking bad financial habits starts with recognising them and making small, actionable changes. With the new year ahead, now is the perfect time to build better habits and set yourself up for a secure financial future.
Here’s to a new year and a new you!
