5 Habits to Make & 5 Habits to Break
Did you know…The 'saying' that it takes 21 days to make or break a habit is a myth!
While there isn't a one-size-fits-all timeline, research shows on average it takes around 3 months to form a habit and even longer to break a habit. Don't let these timeframes scare you. If you want to reach your financial goals, it’s important to break your bad habits and make new ones.
5 Money Habits to Make
- Create a Budget / Set Goals / Set a Designated Check-In (Set a Reminder)
- Automate Savings
- Educate Yourself
- Build an Emergency Fund
- Invest for the Future – Short-term or Long-term
Creating a Budget: Take time to establish a detailed budget that outlines your income and expenses, and your plan. Set short-term and long-term goals that are achievable. Then, set a reminder and designated space for you to check in with your finances, monthly, quarterly, or bi-annually. This will help ensure that you're sticking to your budget. If it’s been difficult for you to put pen to paper, try out our Create a Budget Coach which will help you step by step.
Automating Savings: Setting up automatic transfers to savings accounts takes the thinking out of it and creates a habit that you don’t have to constantly worry about. This ensures that you consistently save back a portion of your income, making it easier to reach your financial goals.
Educating Yourself: Creating a habit to continue learning about personal finance. Stay informed about budgeting techniques and tools, strategies for improving your financial literacy, and more. Start learning with our quick and easy articles, calculators, coaches, and more throughout Banzai Wellness Center.
Building an Emergency Fund: Staying true to the habit of saving is what can prepare you for the unexpected items. Aim to have three to six months' worth of living expenses set aside to provide a financial cushion. Learn how to build your emergency fund, here.
Investing for the Future: Instead of solely relying on your typical savings account, it’s time to diversify your investments to mitigate risk and increase the potential for returns over time. Check out articles about investing in our Banzai Investing Collection.
5 Money Habits to Break
- Impulse Buying / Emotional Spending
- Ignoring Savings / Not Setting Goals
- Carrying Credit Card Balances
- Not Tracking Expenses/Spending
- Procrastinating on Investments / Not Making Your Money Work for You
Impulse Spending: Try to avoid making purchases on a whim. Instead, create a budget and stick to it. Planning your expenses may help curb your impulse spending to stick to a budget that is within your means. If something comes up that you want, ‘sleep on it’ for a day, or even 30 days to see if that want fades!
Ignoring Savings: Neglecting to save regularly can hurt you down the road. Break the habit of not saving by setting aside a portion of your income each month for an emergency fund and long-term goals. Consider breaking your budget down further to make it easier and look into the 50/30/20 Rule.
Carrying a Credit Card Balance: Only paying the minimum payment on your credit card each month can lead to a snowball of debt and high interest charges. Break the habit of carrying a balance by paying your credit card bills in full and on time if you can. If you can’t, take a gander at some debt repayment strategies.
Not Tracking Expenses: Failing to keep track of your spending can lead you down a stressful financial road you don’t want to be on. Get in the habit of monitoring your expenses regularly to identify areas where you can cut back and save more.
Dilly-Dallying on Investments: Avoiding investing because you lack the tools or education on the topic can result in missed opportunities for growth. Break the habit of postponement and investigate some legitimate investing options or experts to help you get started.
Remember, breaking and creating habits takes time, consistency, and discipline. Gradually incorporating these into your routine can lead to improved financial well-being over the long term. It will be a personal journey that will require patience and determination, but it is possible!!!
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