10 Tips For Making Great Financial Habits in 2020

In order to reach the financial goals each of us set in life, it’s important to adopt supportive financial behaviors when dealing with money.  The market’s best budget tracking tools can offer a great deal of help to consumers that have difficulties managing household finances.  Fortunately, a little bit of patience and research can enable every household to achieve a sound financial environment in the future.  In this article, we will look at 10 tips for developing great financial habits as we head into the year 2020.

Organize financial records and purchase

Begin filing receipts, bills, bank statements, loan records, and tax forms.  Even better, consider going paperless via your online bank account and many of these types of tasks can be automated for you.  Being able to access the entire history of a banking account makes it easier to find critical financial data while saving time and effort in our budgeting activities.

Establish sustainable budget programs

Budgets that are well-defined can be adjusted to meet the specific needs of every household.  Improving on a budget program can help households identify areas where expenses can be reduced.  Budget programs allow us to see where money is spent and this makes it easier to figure out where money can be saved.

Use direct deposit 

You can have quick access to your money if your employer sends your payment as a direct deposit.  By receiving your salary directly from your savings or checking account, households can eliminate the worry that often comes with lost checks, vacation delays, or just the wait in line that is required when making bank deposits. 

Automatic savings drafts

Each month, your bank might be able to set aside a portion of the household income to deposit into a savings account.  Sometimes its easier to avoid spending when the cash isn’t readily available and holding money in a savings account can help pay for a new car, much-needed vacation, or even a house.

401(k) employment programs 

Many employers offer retirement programs that include a 401(k).  It’s a great idea to sign up for these opportunities! Through the power of compound interest, a small amount of savings can really add up and the money set aside is pre-tax, which is an excellent advantage. 

Prepare your own balance sheet 

A balance sheet is essentially a snapshot that shows net worth, which can be a great way to stay on track (in financial terms).  This information can be very helpful whenever you are interested in applying for a loan from a bank lender.

Regularly monitor your checking account 

Keeping track of your checking account can make it easier to prevent overdraft fees or bounced checks.  There are bank different ways to monitor expenses and this can be accomplished using budget tracking tools and online banking tools.

Use online bill-pay 

Online bill-pay is simple and there is no need to worry about driving to a post office or buying stamps last-minute.  Recurring monthly payments (such as a student loan or auto payment), can be paid automatically and the specific schedule can be any day of the month. 

Don’t pay the credit card minimum amount 

Paying the minimum monthly credit card payment can cost a substantial amount in added interest.  Additionally, it takes much longer for households to pay-off their credit card balances. In order to avoid these unnecessary costs, consumers should only buy what they can afford and it’s often a good idea to use a debit card (rather than a credit card) to pay the costs of everyday expenses. 

 Always watch your credit scores

Credit scores (TransUnion, Experian, Equifax) can be vital whenever a household is trying to limit long-term costs.  Knowing your credit history can help households better understand their true financial situation and to identify the best lending opportunities in the market once they develop.