Once the year-end rush wears off, you might find yourself focusing on the new year and the chance to hit the reset button. If you’ve stumbled into bad financial habits, take the turn of a new year as an opportunity to get back on track. Here are some healthy financial habits to start the new year off right.
This does not constitute advice and advice should be sought in all instances before acting on it.
Prioritise yourself
Even before you allocate money to bills and other expenses, you should pay yourself first. This means saving and investing a portion of your earnings before you do anything else.
Set a goal for your savings and make sure you understand what you must spend money on versus what you want to spend money on. Even if you’re not saving much, the important thing is building a new habit. One that makes your money work for you. Once you’ve paid yourself, allocate the rest of your earnings to bills and other living expenses.
Spend less than you earn
If you’re spending more than you earn, chances are all you’re doing is building up a big pile of debt. If you have a tendency to over-spend, you might not have enough to pay off credit card debt in full every month and the interest rates that accumulate just add to the issue. Do whatever you need to do to prevent spending on credit and make it a habit to assess any potential “luxury” purchase.
Don’t let emotions affect your financial decisions
It’s easy to see why so many people get emotional over finances so it’s not surprising that sometimes our emotions dictate our decisions. Spending money can be a way to express disappointment, anger, or even happiness. Unfortunately, emotions can be detrimental when it comes to making financial decisions.
Don’t allow your spending, saving, and investing habits, which have very real long-term consequences, to be dictated by the way you feel in the heat of the moment. Take your time and make levelheaded, rational decisions about your finances.
Learn that not all debt is necessarily bad
It might be hard to believe, but not all debt is created equal. For example, credit card debt is not the same as a mortgage since owning a home can actually help your financial standing. Taking out loans to finance your education could lead to better career prospects and better earning potential. Even incurring debt to start your own business could be beneficial down the line. These are all arguably necessary financial moves, while racking up credit card debt is decidedly a bad decision.
Work with a financial adviser
Perhaps one of the most important habits you can instill is trusting a financial adviser. No matter what your goals are – managing your money, building your wealth, or securing your future – an adviser can help by creating an effective plan that lets you achieve your objectives.
Dental and Medical Financial Services provides a wealth of knowledge, qualifications and experience that you most likely don’t possess yourself. If you do have any questions or concerns about your financial health, get in touch with us so we can put your mind at ease and start your new year off right.
Want to start off the New Year right?
Investments | Financial Planning | Retirement | Save Tax | Protection |
Dental & Medical Financial Services have been helping doctors and dentists to build and protect their wealth, whilst saving tax for over 25 years.