You can do this!

It is really easy to get off-track financially. Life’s very busy and keeping on top of your finances can be difficult– especially if you’ve fallen into bad financial habits. But don’t get down on yourself, and don’t give up. Sometimes it’s relatively simple things like getting rid of bad financial habits that can make real and lasting changes so that you can feel more in control of your life today and more hopeful about your future. You can do this!

Here are three bad financial habits and the was to fix them so you can start changing your financial life right now…

Bad Habit #1: Not knowing what you are spending your money on.
In this case, not knowing can hurt you. It is far too easy these days to whip out a credit card or debit card for purchases without even thinking. The $10 charge here and $30 charge there seem like small purchases at the time, but they all add up to a very large number at the end of the month. If you aren’t tracking your spending, you will be surprised how little money you have left at the end of the month.

Fix #1: Track your spending. It is the only way to know for sure what you are spending your money on. There are many methods for doing this, from Apps to spreadsheets to just plain old pen and paper. Make sure to categorize each purchase so that it fits into your budget. Knowing that you have to justify the amounts you spend every day (or every other day) will make you think twice about your spending habits.

Bad Habit #2: Not managing your debt. Being in debt can be feel overwhelming, but don’t use that as an excuse to put off paying it off.

Fix #2: Create a debt management plan. When creating your plan, you should be specific and make the goals achievable. Either the avalanche or snowball which I have discussed here are good approaches to paying down your debt quickly. Also make sure that you are never late with your payments as the fees are usually high, and the consequences to your credit score can be even higher, making it difficult for you to get credit at an affordable rate (or even at all) when you really need it.

Bad Habit #3: Failing to save. I’m sure you’ve heard by now that more than half of all Americans have little to no savings. That’s the major reason too many of us can’t get ahead financially and can’t feel confident and hopeful about our financial future.

Fix #3: Creating a savings plan.
Creating a savings plan means setting up and funding savings accounts to help you reach your goals. A solid savings plan helps you in three important ways. First, it smooths your income when an emergency happens or you lose your job. Second, emergency savings helps you avoid costly debt. And third, the financial cushion of your savings accounts helps you feel better about yourself. On the one hand, it reduces the worry you carry around because you know that an emergency won’t ruin you. But even better, saving ahead of time also helps you reach your goals, like traveling, taking a real vacation, or buying a car or even a house.

This can all seem overwhelming. But don’t give in to that feeling and don’t give up. You’ve probably heard great stories about how someone overcame tough financial times and now thrive financially today. But they didn’t do it by themselves. They got good financial advice and coaching to help them get to where they are today.

If you’d like to discuss using our Cash Flow and Debt Management coaching program to help you get on track and stay that way, just fill out the form below. We can help you address these three habits and much, much more. There is no charge for the consultation, and if you mention this blog post, we’ll offer you a 25% discount.

Stop feeling overwhelmed and start fixing your financial life today. You can do this!