3 Tips to Cultivate Good Money Habits

Just as we develop a lot of habits in the formative years from our parents, the same can be said of bad money habits as well.

These habits developed can either result in making or breaking our lives not unless we decide to change them for more efficient ones, and which can only be achieved by trial and error.

#1:Define Good Money Habits

One of the best ways to start is by identifying bad money habits, and by finding a way to correct any faults or scenarios that have troubling you for a while. If your problem is debt, overspending or very little saving, start by asking yourself how to avoid the triggers that put you in these recurring situations while also thinking about how you can develop new habits.

#2:Identify and deal with one bad money habit at a time

Once you’ve dealt with identifying what the bad habits are as well as made plans (with clear rules) as to how you can counter these habits, it’s important to realize that you cannot implement all these rules together. One step (and a few rules) at a time and you can move on to managing your money better.

#3:Set mini-goals

Consider the cultivation of good financial habits as a long-term project with mini-goals spanning 30, 60 or 90 days. For example, if your goal is to be debt-free within 3 years, then it would be wise to track down how you will cut down that debt over the next 3 years, and probably every six months or so.