Many financial decisions we make most times are largely influenced by habits, trends and peer pressure but a smart person would consciously discipline himself/herself to invest in only things that will be beneficial even if it means postponing that trip, going for less expensive brands etc. All these constitute good financial habits

All those seemingly insignificant financial adjustments you make determine your financial health. Those small decisions alter turns into bad choices add up to debt, regret, and major issues in the long run.

It is never to late to become conscious about your financial health and prioritize necessities over wants.

1. Learn to Set a Budget

First take out your fixed expenses [e.g rent, phone bills, taxes etc] as soon as your income arrives. This will help you know the directions of your expenditure.

When you have done all these and there is money left, allocate at least 20% of the general sum to savings and investment and adequately plan the days and weeks with whatever is left.

2. Always GIVE ROOM for Second Thought.

When you find yourself about to make an unbudgeted spending or overshoot on the price of the commodity, take a second to reconsider . At the very least, it is essential to build up a restraining habit to avoid impulsive spending.

3. Use AUTOMATED Saving Platforms

Set out a certain percentage from the point salary enters. Platforms such as Piggy Bank or V Bank

You can activate automatic saving at a certain time in the month, or opt for longterm money lock savings plans. Ideally, you will need to consider having a pension plan for retirement money.

4. Always Make Use of Scale of Preference

Nearly everyone has the urge to make an impulse purchase. That could be a little as a portion of emergency food. Consider whether each regular purchase you make makes gives you happiness. If it doesn’t, and you’re just buying out of impulse, consider overlooking the purchase and spending the money for something else.

5. Develop the Habit of Saying No with Ease

It’s OK to say No or enquire about the availability of an alternative. Sometimes spending money simply because we don’t to look inferior to our friends, family, and colleagues is a bad step to tow.

Dont feel obligated to always do what your colleagues are doing even if its in gathering. That family vacation could be postponed as well if you see it will cause a strain to your pockets. Spending money to keep up appearance is a very bad habit that should be curbed.

Author: Iwuala Chimezie Bellarmine.