Budgeting, Saving, Spending

6 Easy Habits to Start Your Financial Journey

Financial Journey
Posted by mycentsofwealth

Want to start your financial journey this 2021 but don’t know how? Here are 6 easy habits to start your financial journey.

1. Track income and expenses

Tracking income and expenses is one of the easiest yet the strongest financial foundation you can start with. I don’t think you can go anywhere without doing this first. It is the foundation for creating a realistic and flexible budget. If you don’t know how much you earn or spend, how can you set savings goals? Make it a habit to write down what you receive every payday and the expenses you incur every day. This habit gave me a lot of insights into my spending pattern and helped me figure out what to cut back on.

2. Create a budget

Make it a habit to create a budget every payday. This tremendously helped me saved more money because I knew where my money was going and how much is left! It took me a while to figure out the best method and app for me but listing my expenses every day really helped me set the realistic amount for my expenses.  

3. Set money goals

What is the thing that you want the most? To have your own house? To have 10 million pesos? To be an astronaut? Marry your dream boy/girl? To be financially free? Whatever they are, whether they are non-monetary in nature or not, you will need to have money to pursue them. Yes, money makes the world go round and not love. Char. Make it a habit to write down what you are goals are and plans on how to achieve them. Here’s my 2020 and 2021 goals. 

4. List down your wants 

Every year I list down what I want to buy and spread them out per payday. For example, I needed to buy new trousers, or new books or a new set of underwear and then I schedule to buy them on Jan 15, Jan 30, Feb 15, and so on. This helps me from overspending on my wants and also to easily audit my material things. I became more mindful of what I buy in the process. I call this my Purchase Plans and here’s my 2020

5. Educate yourself

Set aside a few minutes every day to read on topics that interest you. Read or watch Youtube, whatever learning method works for you. If you encounter an unfamiliar word, look it up. Increase your knowledge. Learn. Follow people who are in line with who you want to be. There are so many resources available so “I don’t know” is not an excuse. 

6. Take care of your health

Health is the real wealth. You may have all the money in the world but if you can’t physically enjoy it then what’s the point. Start small healthy habits like a 5 min stretch in the morning then maybe you can progress to 30 mins exercise.  If you eat fast food every day, maybe you can limit it to every other day. Small everyday changes will have a big impact in the long run.  

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