How to Turn Bad Financial Habits into Good Ones

Do you regularly go over-budget? Are you accruing more credit card debt than you can pay off each month? While you may feel you should curb your spending, figuring out HOW may be a struggle.

Here are five ways you can break the bad financial habits keeping you from your financial goals!

• Reflect: Can you identify your bad habits? Write your answers on a sheet of paper.
• Replace Rather Than Break: We keep our bad habits because they benefit us in some way, whether it’s with a mood-boost, or a calming belief that we are bettering our lives with our purchases. Rather than think of a bad habit as something to eliminate completely, replace the reward of a bad habit with another rewarding, less expensive, and positive habit.
• Cut out Triggers: If you tend to do most of your spending at the mall, don’t go there. If you read a certain magazine that urges you to buy the latest and greatest beauty or health items, read different content for a while.
• It’s Who You Know: Surround yourself with people who live the way you want to live! Flock to your frugal friends. You can even team up with one of them to keep each of you on-track.
• Make It Automatic: Your bank can help! Automate transfers to your savings account or credit card. This will reduce your temptation and help you streamline your worries.

Good habits are a daily choice. Make small goals and visualize the outcomes you’re working toward.

If, after these steps, you find your issue is that you just don’t have the income to meet your basic needs, reflect again: you might want to consider downsizing your life and determine ways to boost your income.