Good money habits to start today
1 Know the score!
Get into the habit of checking your bank balance regularly, at least 2-3 times a week. It is important that you always know how much money you have in your bank account because it helps you to manage your money more easily. You can check for incorrect transactions and you will know how much you have available to spend. This will prevent you from overspending and from having to borrow money unnecessarily.
2 Save it!
It’s a great idea to start getting into the savings habit early. I would recommend that you save a small amount of money each month into two separate savings accounts. One will be an emergency fund account and will be there when you need to pay for unexpected events, such as something breaking down. It’s a great idea to also start a savings fund that is purely just for fun money! This can then be spent on whatever you want, and means that you can treat yourself sometimes, and the money will already be there to pay for it.
3 Question it!
Martin Lewis, Money Saving Expert, suggests that you should ask yourself some questions each time you consider spending money. If you can get into the habit of asking these questions, before spending, then you will save huge amounts of money over your lifetime.
The first set should be used if you are skint, and you should ask yourself:
Do I need it? Can I afford it? Can I get it cheaper somewhere else?
Even if you’re not skint, you should always ask yourself some questions before purchasing anything.
Will I use it? Is it worth it? Can I get it cheaper somewhere else?
4 Compare it!
Although this has been mentioned in the questions above, it also merits its own paragraph!
I want to emphasis how important it is that you get into the habit of comparing prices on everything you buy.
From clothes to cars, broadband to bikes and holidays to haircuts, you should always make sure that you are getting the best price available.
It’s really easy to this with Google, various comparison websites like Compare the Market or Go Compare, and sites like Idealo, which even send you an alert when your item reaches the cheapest price.
And that’s it!
Four simple habits that will help you to become a money maestro, before you have even left school.