12 Good Finance Habits You Should Adopt for 2023
Good habits can help you get in shape, build a business, or even reach financial success.
With the start of the New Year rapidly approaching, you have the perfect opportunity to start fresh and begin adopting good financial habits to help you reach your financial goals.
If you want to have a successful financial future, try incorporating these good financial habits this upcoming year.
Here’s what we'll cover in this post:
Quick Article Guide
Here’s what we'll cover in this post:
1. Setting Goals
Imagine if you left your house with no final destination in mind. Would you find yourself driving in endless circles? Without a destination, we don’t have a defined path. Goals are the same way. To achieve a successful financial future, you must have direction.
Try setting daily, weekly, monthly, and yearly goals. Your short-term goals are stepping stones to achieving your long-term aspirations. Establishing your goals will give you direction for your financial journey. Keep in mind, throughout your life your goals may change. It’s okay to make adjustments along the way.
2. Track Spending
Tracking your spending may unveil some of the financial mysteries that are holding you back. Keeping track of your spending will show you where your money is going each month. It will reveal the financial habits that may be holding your back from achieving your financial goals.
By tracking your spending, you can make adjustments before they become even bigger financial problems. It will also help you break your toxic spending habits once and for all.
3. Automating Your Savings
Pay yourself first. This is one of the keys to a successful financial plan. The best way to do this is to automate your savings. If you don’t have to think about contributing to your savings and retirement accounts, you limit these chances of forgetting a month or using the money for something else.
Whether you’re contributing to your employer’s 401(k) or your Roth IRA, set up automatic contributions.
4. Create And Review Budget Weekly, Monthly, And Annually
Budgeting gives you a guideline for how you should spend and distribute your money. It helps you execute your financial plan and save for your goals. It’s not only important to create a budget, but to also review it regularly.
Life changes and so will your budget. Review it often to make adjustments as needed. Examining your budget is also a great way to determine if you’re on track to reaching your financial goals.
5. Researching All Purchases
Taking the time to research and compare all purchases can save you hundreds, maybe even thousands, of dollars over your lifetime. Many consumers fall in love with the first item they see, leaving them unable to view the bigger picture.
For example, life insurance is an important component of your financial plan. Shopping for it can be a bit of a task, but it’s a necessity in order to find the best policy to suit your needs. Comparing life insurance policies can save you a lot of money over your lifetime and ensure you’re properly covered.
If you don’t want to take the time to do the research yourself, you can partner with an insurance expert such as JRC Insurance Group. They can help you find the most affordable policy to fit your needs.
6. Reading All Contracts Before Signing
How many times have you signed something without reading the entire contract? Probably more times than you can count, right? It’s important to understand that the words in the fine print are just as important as the words in the contract.
For example, when you purchase travel insurance, the fine print highlights what the insurance will and won’t cover. All policies vary by provider, that’s why it’s extremely important to understand the terms and conditions if an incident happens.
7. Making And Sticking To Shopping Lists
Have you ever gone into a grocery store hungry and without a list? You probably ended up spending more than you expected to on who knows what. Shopping without a list can cause you to waste money every week.
Before you head for the store, make a list of all the items you need. Stick to the list to the best of your abilities. It may also be a good idea to look for coupons for your standard items. Even if you only save a few dollars each week, this savings can add up over time.
8. Increasing Contributions Every Time You Get A Raise
Get a raise this year? You can use it to increase your savings contributions. It may be tempting to increase you standard of living, but increasing your retirement contributions will yield more future benefits. This is a good financial habit to adopt to increase your overall financial well-being.
Try increasing your contributions by 1% of your income. After a while, you won’t even miss the extra income.
Most of the time consumers assume that the listed price, is non-negotiable. It is surprising the number of retailers and service providers that are willing to negotiate to get your business.
It may feel uncomfortable at first, but by working on your negotiation skills, you may be able to receive deals you had no idea existed. Even if someone is unwilling to negotiate with you, it never hurts to try.
10. Responsible Credit Card Use
Did you know that Americans carry over $1 trillion in credit card debt? How does that happen? Poor use of credit cards. Americans spend beyond their means and treat credit as if it is their own money. If you use credit cards, you’re borrowing money at a high cost.
On the other hand, credit cards can be great tool for building credit, earning rewards, and saving money on interest. If you want to use your cards responsibly, here are some basic rules you should follow:
- Always pay your bills on time.
- Pay off your balance in full every month.
- Apply for additional credit as needed.
- Don’t close unused credit cards.
- Dispute inaccuracies on your credit report.
11. Regularly Review Your Credit Report
Credit errors are one of the highest consumer complaints posted to the Consumer Financial Protection Bureau’s website. In fact, credit reporting errors place in the top three. Credit reporting errors can harm your credit. They will increase your interest rates, loan denial, or even worse, cause you to be overlooked on a career advancement opportunity.
Reviewing your credit report regularly can help you spot errors and address them. You can review your credit report at AnnualCreditReport.com. If you find inaccuracies, visit myfico.com for steps on how to resolve your issue.
12. Brushing Up On Your Personal Finance Knowledge
Increasing your financial knowledge is a never-ending job. It’s important to continue to learn and sharpen your skills. The better you understand the financial industry as a whole, the better your chances are of reaching a successful financial future.
The financial industry landscape is ever-changing. It requires consumers to stay up-to-date on financial news and concepts. Take the time each day to review happenings within the industry to stay current.
The Bottom Line
This year is your year. There is no time like the present to create new habits. Developing good financial habits can help you achieve a prosperous and successful financial future.
At JRC Insurance Group, our agents are experts with multiple years of experience. We are appointed by dozens of top-rated life insurance companies and our agents are not pushy salespeople. Our agents do not have quotas; we’re here to help. We have helped hundreds of clients, and we can help you too. Our passion is finding our clients affordable life insurance coverage to protect their families.
Give us a call today, we would love to help! Toll free: 855-247-9555, or request a free quote here.
Managing Partner and Co-founder
Cliff is a licensed life insurance agent and one of the owners of JRC Insurance Group. He has helped thousands of families of businesses with their life insurance needs since 2012 and specializes with applicants who are less than perfect health. In his spare time he enjoys spending time with family, traveling, and the great outdoors.
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