September 28, 2022
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Money Matters: Financial Habits to Give Up in 2022 | News, Sports, Jobs

By on January 9, 2022 0


Are you making a New Year’s financial resolution this year? In a survey of Fidelity Investments, investigators found that 43% of Americans who make a financial resolution want to save more money, 41% want to pay off debt, and 31% want to spend less money. If you want to do better financially in any of these areas or more this year, consider changing just one habit! It could be making impulse purchases, having only one source of income, using credit cards only for points, spending for convenience, or not staying on a budget. A big part of financial health depends on our habits, so a little adjustment every day can make a huge difference.

Make impulse purchases

An impulse buy is any purchase that is not planned. Impulse buying is usually related to your emotions, such as fear of missing something, urgency, boredom, or even fatigue. Traders take advantage of this, and that’s why you’ll see goodies in the checkout aisle, for example. A buyer will feel the emotion, see the opportunity, and buy the product or service, whether they need it or can afford it.

“To curb impulse spending, start by recognizing when you’re doing the action,” said Paula Pant, budgeting expert at http://thebalance.com. “If you catch that magazine or that candy at the cash register or the clearance item, force yourself to wait. Before you pull the trigger on a purchase, determine if you have extra money to spend on that item and if you need the product. This will give you time to think about your decision, and there’s a good chance you’ll find that you don’t need it after all.

Add a category to your budget specifically for impulse buys. That way if you see something you want and it stays within your budget, you can buy it! Just make sure you stop before the predetermined amount.

Have only one source of income

It is important to develop a stable income stream. So, do your best at your job or work hard in your startup, but don’t stop there.

“You never want to depend on just one stream of income, or your full-time employer, or even just one market because the only constant in life is change and things change so quickly,” said Grant Sabatier, self-taught millionaire and author of “Financial freedom. “The best way to protect yourself against this change is to have multiple sources of income.”

To diversify your income, you can start a side business, invest in real estate or stocks, or even start a web business with online advertising. But be careful.

“A question to ask yourself before investing in anything is: what is the main reason I invest in this? ” noted Roger merrill, Managing Director of Merrill Financial Associates Investment Strategies, a Provo-based financial advisory firm. “Our investment decisions shouldn’t be based on FOMO or the get-rich-quick scheme. Investing on the basis of principles can lead to success; However, creating wealth takes time, discipline and patience.

Use credit cards for points

Using your credit card for certain purchases seems obvious. Cash back and rewards are a great incentive to pull out that little card! But whether you’re using your credit card to pay off your mortgage or just a pair of shoes, be careful.

“Before paying a bill, whether it’s utilities, rent, mortgage, or medical bills, always make sure there are no charges for using a card. credit, ”said Megan DeMatteo, writer and editor of Money. CNBC Select. “More often than not, a 2-3% processing fee can void any rewards you might earn. In this case, it is better to use another payment method, such as a check or debit card.

Convenience expenses

Sometimes an unscheduled drive-thru dinner stop is just what you need on a stressful day. This is an example of a practical purchase, but those expenses can really add up when you rely too much on them.

To avoid convenience shopping, plan ahead. Instead of ordering delivery when you have an unexpectedly busy day, take a weekend to make several dishes in the freezer that you can put in the oven for dinner. Instead of stopping for an expensive latte on the way to work, make yourself a nice cup at home. Planning ahead may take more time and money up front, but what you save in the long run will be worth it.

Not following a budget

If you’re not budgeting, now is the time to start! There is a lot of different budgeting methods you can track, including incremental, activity-based, and zero-based value proposition. Whichever method you choose to follow, there are several advantages to keeping a budget:

  • This keeps you focused on your long term financial goals.
  • It helps you avoid unnecessary debt.
  • It allows you to save for your retirement.
  • He prepares you for emergencies.
  • It helps you identify bad financial habits.
  • It gives you peace of mind.

If you want to do better financially this year, start by changing a habit! Shop deliberately, add a source of income, use credit cards wisely, plan ahead, and follow a budget. Start making 2022 a year to be proud of now!

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