People who have their finances under control aren’t unique. On the contrary, they face the same daily hurdles as we do. What sets them apart is discipline and the ability to prioritize their spending. The fact that Jubilee 2000 UK offers information about trust deeds in Scotland also helps.
Here are six habits of financially savvy people you should consider copying.
Save for a rainy day.
Virtually every adult has heard of a rainy day fund, but very few people actually keep one. Also, many people who manage to start a rainy day fund don’t sustain it. After a couple of months, new needs crop up, and the money is diverted to other things.
Saving consistently is difficult, so it helps to use tools that make it easier. For example, automate your savings, so the money is withdrawn immediately when your paycheck arrives. You may have to adjust your monthly expenditure for a while, but then, it gets easier. Before you know it, you’re prepared for any emergency.
Don’t withdraw the funds until it’s actually raining.
It’s one thing to have a rainy day fund, and it’s another to keep the fund until it’s raining. Another bad habit that we often have is to break the piggy bank every time a need arises. From discount sales to empty refrigerators, there will always be reasons to withdraw your savings.
You’ll need the discipline to keep rainy day funds for actual rainy days. One tactic is to lock up the funds for a specific period. Since you can’t access the funds before maturity, the experience can teach you the value of being patient.
Besides the fact that knowledge is power, reading can broaden your horizon. You’ll find new opportunities to invest and grow your funds. You’ll also become more adept at differentiating between real opportunities and pyramid schemes.
A target of one financial book per year is a great place to start. Even if you only get a few ideas per book, that’s still more ideas than you’d have if you didn’t read.
Being financially savvy isn’t about being frugal; it’s about being smart. Smart people know that you can only hold out for so long. Sooner or later, your mind will crave a reward. Denying yourself could compel you to splurge on unnecessary things.
Instead, plan on how you’ll treat yourself. If you love shopping, you could decide to buy a new pair of boots after hitting a savings goal.
Learn to say no.
We get thousands of offers every day, both online and offline. On your way to work, you may be offered a delicious dessert or a product on the radio. While checking your emails, you’ll probably get ads involving everything from discounts on Amazon to streaming subscriptions.
Learning to say no can help you protect your finances. Impulse purchases can rack up bills like nothing else. The worst part is, you’ll barely remember how/why you made the purchases in the first place. Saying no can set you free!
Saying no doesn’t mean ignoring opportunities or turning people away when they need help. On the contrary, you need to become a reliable employee at work if you want to increase your earnings.
Very often, becoming the most competent person in your team/department puts you on a fast track to promotions, raises, and new opportunities. Employers always want to reward productive employees and prompt them to do more.