Good Financial Habits Are Worth Learning

Post by Sharat on October 7, 2018 · Under Hints and Tips · Comments Off on Good Financial Habits Are Worth Learning 

It doesn’t matter whether you have just gotten your first credit card of you have been making mortgage payments for the last decade, it is always advisable to brush up on good financial habits. This is to make sure that you know you are on the right track and are managing your finances properly. We can always use a refresher course on what practices we should emulate so here are a few tips that financially savvy people live by and if you don’t do them, you should add them to your routine.

Make extra mortgage payments

The home loan is probably the largest single expense any individual will ever have, so minimising the amount of interest paid will make a massive difference to the bottom line. This can be achieved by making additional mortgage repayments. Not only does it take years off from the life of the loan and enables borrowers to become debt free much quicker, but it also ensures interest expenditure is minimised.

Paying off a credit card balance in full

Using a credit card responsibly means it is possible to get the benefits without ever having to pay a single cent in interest. To achieve this, card holders need to ensure they pay their entire bill in full and on time at the end of every billing cycle. For those that tend to be forgetful about this sort of thing, it is extremely easy to establish a direct debit so that never happens.

Avoid unnecessary bank fees

This almost goes without saying particularly in this day and age. There are plenty of fee free bank account options to choose from, there is really no excuse anymore for people to get rid of the holes in their budget by moving to an account that doesn’t charge fees unnecessarily.

Savings should be the priority

It is critical that individuals have a corpus of funds should there be an emergency. If possible, a direct debit which sends cash to a savings account on pay day should be established. That way people can ensure they are always putting away some amount of money to deal with the inevitable rainy day.

Regularly review finances

The most important habit of financial savvy people is to give their finances a once over regularly to ensure they continue to receive the best deal. This could be everything from ensuring their rewards credit card is the best in the market, they have the best home loan rate available to them, or their rainy-day fund continues to grow. The best thing people can do is set a date once a year and review their finances to ensure things are healthy.

 

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