Following on from Its all about the habits part one here are a few more useful financial habits to try in order to secure a happy financial future.
Switch, switch, switch!
Recently I had my car insurance renewal quote come through, it was double that from the previous year. If I had just left it to auto renew I would be around £400 down now. Instead, I got another quote, put this to my insurance company via their app ( I didn’t even have to call them up) and they halved it just like that! It all took about 30 minutes. I just made £400 in 30 minutes not bad! This is the same for other expenses such as mobile phones, house insurance, broadband, TV package etc. A few hours spent getting some quotes and switching providers could save you thousands over a year. That will probably be the most profitable couple of hours of your whole year!
Regularly audit your bank statements.
Its a good idea to get into the habit of checking your bank statements on a regular basis. One reason to do this is to check what regular payments are going out and if they are correct. You don’t want to be paying twice for something or paying for services you no longer use because you forgot to cancel a direct debit. Another reason is so you can also check where your money has actually gone each month. You can then decide if you are happy with your spending decisions or if maybe the budget needs tweaking a little.
Create a budget
This one maybe should be top of the list but I think most people are aware they need a budget. However, we often put it off as it sounds too boring or restrictive. If this sounds like you then please read my post budgeting can be fun! to hopefully give you some inspiration to create and stick to a budget. We all need a plan for where we are going and why, this is all a budget is. It helps us reach our goals and make sure we are spending on things that align with our values and plans for the future.
And finally, Treat yourself
I know this can sound counter intuitive when discussing good financial habits, however money is there to enjoy. There is no point amassing a big number of digits in your bank account if you don’t actually do anything with it. If you have put the previous 6 habits in place, you should hopefully now be saving more and more each month. This maybe for future goals like retirement or a house purchase but we also have to enjoy the here and now as discussed in getting the balance right. So do remember to use some of the money to enjoy your life now. If there is a trip you want to make or a restaurant you really want to visit, do it! You are working hard to get your financial life in order so you should also enjoy the benefits!
Semi-Retire FIRE 