Creating better money habits will help you to stress less about your finances now and into the future. As we move into a new year, it is a great time to form new habits and set yourself up for success! Here are four ways to create good money habits in 2023.
1. Track your money habits with savings
Do you have a strategy for your savings? If your savings are sitting in an everyday bank account, it’s much easier to reach into your savings if you are ever tempted. It is also difficult to track your savings if they are sitting within the same account as your outgoings. This is why money habits are important!
Setting up a separate account such as a Term Investment will allow you to easily track your growth. You can set up regular payments so that your savings continue to grow without much thought. If you choose a high-interest account for your savings, your savings will accumulate faster meaning that you’ll reach your financial goals sooner.
Learn more about APS Term Investments where can earn up to 4.00% p.a.!
2. Create a budget
Budgeting is an important foundation for good money habits. Without a budget, it is difficult to track how you are progressing against your goals.
There are several ways to organise your budget, however, it is important to have an understanding of your net income, your expenses and your goals. You may need to adjust your spending to stay on budget and to reach your goals which is why it is important to regularly check your budget.
3. Think about future planning
Good money habits are focused on looking ahead and planning for the future. This includes setting goals for your finances and considering substantial expenses such as new cars, your child’s education or a once-in-a-lifetime holiday.
The most important plan to consider when you are looking at your future finances is retirement planning. Preparing for your retirement starts early and is something that we save for as soon as we enter the workforce. It is important to consider what your retirement plan looks like and if you need to put any super strategies in place to ensure that you are on track.
Chat with the team at APS Financial Planning about your retirement plan.
4. Allocate time for your finances
By prioritising your finances and creating space to regularly re-visit your numbers, you’ll be putting yourself in a healthy mindset for growth. You could set up weekly or monthly appointments to review your budgets, your income and your expenses.
If you have leftover funds, you may choose to allocate them to an emergency fund or transfer them to your Term Investment. If you are having a tough week, you can reflect on what happened and if you need to make any changes to your budget or expenses. Setting time aside will set you up for success in creating healthy money habits.