This article will introduce to you 5 simple financial habits that can lead you to impressive results. Take your first steps towards financial literacy.
Don't accumulate debts
Try to always pay your bills on time. Research shows that debt has a direct impact on the level of stress you experience. Those who have at least $1,000 owed face sleep problems as well as lost optimism and self-confidence. Besides the stress, debt also redoubles your financial problems. Plan your budget and prioritize the spending.
Create a financial cushion
Set aside some money for financial emergencies. It is considered that the optimal amount of your monthly savings should be between 5% to 10% of your income. This amount may be adjusted depending on your current financial situation and recent needs. At the same time, building an emergency fund should become your monthly routine regardless of the amount you save.
Cut your expenses
Review your monthly expenses and determine which ones are unnecessary. You may cancel some subscriptions that you barely use or take control of your home shopping network syndrome. To do shopping just because you're bored is one of the first financial habits you should drop. Reduce the number of impulsive purchases and try to become a conscious consumer. This will be great not only for your budget but also for the environment.
Live below your means
One of the most valuable skills to start your journey to financial literacy. It may seem challenging at first, but you'll be surprised at how much could be changed by even some small spending adjustments. Give up the idea of buying everything on credit. First of all, ask yourself the question: “Do I really need this, or have I fallen under the influence of marketing tactics?”.
Be a savvy shopper
Buying clothes and accessories in second-hand stores, you save natural resources, as well as your own money. This habit can help you to save thousands of dollars every year. At the same time, the used clothes that you buy are usually unique and have their charming history. You can find a lot of interesting things there and save about 40% compared to the cost of the apparel in the mass market.