Welcome to the first post of a series I’m putting together on how to manage your finances.
Today I’d like to talk about money habits. There’s this saying “Where does the money go?” What’s actually more important is the “why”. That’s what I want to focus on.
I’ve found that in life, everything comes down to our habits, particularly in our finances. When I was 18, I got a letter in the mail from the bank telling me I could get a credit card. And by default, I fell into the habit of using my credit card to pay for discretionary expenses, my day-to-day spending. I spent a lot of it on music gear because I was really into that. Probably not the worst thing I could’ve spent it on. I didn’t give this habit much thought. It was something everybody did.
I felt the real pain though when I used it for a holiday, and I started to see interest appearing on the credit card statement. That’s when I realized it was actually a harmful habit that had developed. By now, from experience and education, and I have changed it into a positive money habit, a positive way of using credit cards.
I wanted to share this with you today because we all tend to fall into the default mode. Often you aren’t aware that something is negative, and only realize it when it’s too late, and you’re hit with real pain.
In my spending planning service, I work with people one-on-one to help change those negative habits into positive money habits. Understanding why money goes is an essential first step.
What’s a positive money habit that you’ve been able to implement in your life and your finances? Let me know in the comments below.