5 POSITIVE MONEY HABITS TO CULTIVATE AND HONE

Looking for less stress and more progress when it comes to reaching your #MoneyGoals? Here are five positive money habits to cultivate and hone to help you on your journey to financial freedom.

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Most people a love-hate relationship with money. We’d love to have more of it and hate the bills and obligations forcing us to part with it. But in order to reach our financial goals, so we can live our best life, a fair amount of diligence (as far as saving and spending is concerned) is necessary.

And while you might not feel as if you have the willpower to change your ways and build your bank balance, cultivating and honing positive money habits can help to reframe your thinking and shift bad behaviours when it comes to the progress of your personal finances.

SAVING STUMBLING BLOCKS IN SA
In South Africa, the cost of living seems to rise more quickly than our salaries are increasing. According to the most recent Investec GIBS Savings Index, the average savings rate in the country is pretty much zero. This is because, for every person stashing cash into investments and retirement plans, someone else is taking out multiple loans to lead a lavish life.

The World Wide Worx More Month Than Money survey, which was commissioned by TymeBank, also revealed that 57% of us run out of money by the 15th of each month, with 76% hitting zero before it ends. Only 4% of respondents said they’re able to set aside money for retirement, education or emergencies. Saving, however, isn’t the only problem we face when it comes to achieving financial freedom.

THE SPENDING SETBACK
We are wired to seek out pleasure. Shopping, or just spending money, can cause the brain to release the chemical dopamine – a neurotransmitter also referred to as the ‘feel-good hormone’ – which can give you a ‘high’ and become addictive. Combine that with the social pressures of keeping up with the Joneses and living in a consumer culture, and it can be di cult to fight the temptation to swipe that credit card.

To live a financially stable life, it’s important to shift your thinking from short-term pleasure to long-term goals. Cultivating the correct money habits now can help you on your journey and get you where you want to be. Here are five habits to hone for less financial stress and more progress.

1. MAKE A PLAN
You have to know where you are going in order to reach the destination. And this couldn’t be more true when it comes to your financial future. This is why it’s crucial to have a plan in place. This will help you in establishing goals and figuring out the actionable steps needed to reach them.

This needn’t only apply to long- term goals but short-term ones as well. Saving for a holiday is an example of a short-term goal, with paying o your bond being an example of one that will take a couple of decades to meet. Breaking your goals down into these sections can help you to prioritise accordingly.

2. CREATE A BUDGET
You don’t need to be good at maths or invest in ledger books to create a budget. These days, there are plenty of online budgeting tools and spreadsheets as well as mobile apps that allow you to make lists of your fixed monthly income and costs, and assign amounts to certain areas, from bills to entertainment.

They will even do the adding and subtracting for you! This is a great way to get a holistic overview of your finances to identify areas and ways in which you can save. It also helps you to shop more mindfully because you’ll have a budget to stick to.

@nomazdiaries The easiest Budget Method that will change your life #budget #viral #foryoupage #cashenvelopesystem #budgetforbeginners ♬ Say So (Instrumental Version) [Originally Performed by Doja Cat] - Elliot Van Coup

3. AUTOMATE YOUR MONEY
Life is busy and, for many people, the end and beginning of the month can be chaotic. This is also the time that most new or ongoing bills are due. Instead of doing this manually, ask if you’re able to set up a debit order so that amounts are deducted automatically.

This is also a handy way to ensure you save money without thinking about it. Set up a debit order from your day-to-day account that transfers cash directly into your savings to shorten and simplify that never-ending hassle.

4. CUT YOUR COSTS NOW TO SAVE FOR THE FUTURE
If we would be completely honest with ourselves, we could all admit to splurging money on unnecessary expenses (some more often than others). But eliminating them can actually save you cash, which can be set aside in savings or used for other important payments.

Becoming savvier with your monthly shopping habits is a great way to score when you spend and cut costs. Sign up for loyalty cards that o er discounts, compare prices at different retail outlets and look out for sales to stock up on your monthly must-haves. This can shave money off your grocery bill that can go towards your financial goals instead.

5. EDUCATE YOURSELF
Most people don’t enjoy discussing money. In fact, it is considered rude in most cultures to engage in this topic, while others might just find it plain boring. This, however, is not conducive to making good money moves. For this reason, it’s important that you educate yourself on how to attain financial freedom.

This can be done by reading books, visiting websites or listening to podcasts that deal with this complicated subject matter, and make it reader and listener friendly. We recommend reading You’re Not Broke, You’re Pre-Rich by Mapalo Makhu or listening to My Money, My Lifestyle hosted by local financial guru Maya Fisher-French for starters.