That $10 lunch habit? That $30-per-class spinning habit? While you may barely even think about them, costly habits have the potential to wreak havoc on your budget.
And, just like bad habits can get you into financial trouble, good habits can help keep you out of it—and help you spend wisely, save well and, most important, reach your biggest financial goals faster.
After all, taking control of your money is about making it work for you.
Ready to get started? This January, our challenge to you is to adopt one new money habit today. And, while you're at it, drop one that's been holding you back too.
What will you leave behind in 2013—and what good habit will you embrace this year? Tell us in the comments!
And, if you need inspiration, any of these might be a great addition to your financial repertoire.
1. Schedule Your Money Minute
Ever been surprised by the amount of money—or lack thereof—in your account? There's a way to keep that from ever happening again. LearnVest founder and C.E.O. Alexa von Tobel takes a "Money Minute" first thing every day, where she logs on to her LearnVest Money Center and checks her account balances, recent transactions and progress toward her goals. In just 60 seconds, she knows where she stands and what she needs to do that day to stay on track—and you can do the same. Simply set a calendar alert for a time that's convenient for you, and be amazed by how much you can learn in a minute.
2. Set Up Your Savings Automatic Transfer
To err is human—and let's face it, most of us would forget to put money into savings unless we automated the process. (Or we'd simply spend it on something else.) But automatic transfer is divine! In fact, it's one of the easiest ways to help your money grow. Your to-do: Call the bank where you keep your savings account, or log on online, and set up a biweekly automatic transfer from your checking account today. If you prefer, you can even reach out to your employer and have a portion of your paycheck direct deposited into savings, bypassing your checking account altogether. How much should you sock away? Start with 1%–2% of your income, and set a calendar alert to review in a month. The most important thing is to start the habit. Once you have, the opportunity to watch the balance grow will become an addiction.
3. Adopt a Spending Mantra
It turns out mantras aren't just for yogis anymore. A recent report by behavioral economist Dr. Hersh Shefrin shows that creating a financial rule of thumb to guide your spending decisions can actually help make us better money managers.While scientists call them "heuristics," not mantras, they work specifically because adopting a personal belief we want to live by—even if we invent it ourselves—makes us feel guilty if we don't abide by it.
So, how you do you go about adopting a mantra? Think about one spending habit you'd really like to change: Maybe it's the $50 you spend on work lunches each week. Maybe it's the fact that you can't seem to get out from under your debt. Then create a mantra designed to combat it, such as, “I only splurge on entertainment after I’ve paid my credit card bill in full." Better yet, write it down and pin it to your bulletin board, or snap a pic and make it the background on your phone.
