6 Financial Habits to Develop this 2016

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Whether you want to eliminate debt or save more money this 2016, there are powerful financial habits you need to develop. These habits will serve as a solid foundation for whatever financial goals you have in mind for this year. Here are some of the best and most powerful habits to kick off a promising financial life this 2016:

Change the way you think

Like with any goals, change must start in the mind first. If you think getting out of debt is impossible or stretching your budget is out of the question then there’s no better time to reverse your thinking than now. With the right plan, overcoming your biggest financial hurdles may not be a walk on the park but it sure is possible. Believe it first and it will pave the way for a more successful habit forming journey this 2016.

Automate savings

Most if not all of us know that saving for the rainy day is a good thing. We know that it’s something we all need to do if we want financial freedom. Unfortunately, knowing is different from doing. And doing for the most part is where we all fail. This is why automating your savings may just be the best habit you can ever form this 2016. When you automate savings per month, you make it easier to stick it out because its money you don’t see and you don’t have to recommit daily to develop the habit.

Create a realistic budget

The hard part is not creating a budget but sticking with it. Most of the time, we fail to follow our budget because we create ideal budgets. For 2016, it’s time to develop a new habit and that is to create a realistic, simple budget that we can easily follow. It also pays to give your budget some room for unexpected changes and flexibility.

Track expense

Don’t stop with creating a realistic budget. If you really want to take control of your finances this 2016, it’s time to be more vigilant when it comes to tracking your expenses. Whether you do it the old-fashioned way with a notebook and pen or using your mobile phone with a finance app, start tracking your expenses up to the last penny if possible. Only when you track finances will you see a clearer picture of where your money goes.

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Keep an eye on your credit

There’s also no better time than to get into the habit of keeping an eye on your credit reports. Regardless if you have good credit or bad credit, you’d be better off if you can pull your credit reports regularly. Doing so is completely free by the way. You can check our credit report once per year for free. But you can also do it once every four months (recommended) at a small fee. Either way, look for inaccuracies and errors on your credit files and have them corrected immediately if there are any.

Talk and think about your financial goals

Most people shy away from talking about their financial goals and life. If you have a large amount of debt then it’s understandable why you don’t want to share. If your desire to be more financially secure is stronger, however, then talking and thinking about your financial life can do wonders. Talk to family and friends. Share your money goals and ask them to be accountability partners if they’re willing. Sticking with your financial goals is easier when you know you have someone looking out or calling you out when you commit missteps.