At the beginning of 2022, you are probably one of the many people who would want to kickstart the year with new goals for financial freedom.
So, if this is also your goal but still clueless about how to start your journey toward financial freedom this 2022, here are some practical money habits you should practice this new year:
1. Save up
Forbes Advisor, along with hundreds of financial experts, reminds that the habit of saving is one of the keys to successful personal money management.
Saving should be done regularly, not just when it is convenient or there is something left on your salary.
From your paycheck or any source of income, set a default portion of it for your savings. Once it is on your bank account, treat it as invisible money so you cannot spend it.
2. Track your expenses
Another habit to start this year is to keep a record of your expenses. Check where your money goes every month.
Depending on your preference, you may go with the traditional pen and paper listing process of expenses, or you may easily download money tracking apps.
Keeping a tab of your expenses can help you see your upcoming bills and prevent you from spending on unplanned purchases or lavish items.
3. Plan your purchases
Leave behind your impulsive add-to-cart habit during pay-day sales. Instead, this 2022, start sticking to your budget and spend on the things you planned to buy for your salary.
It does not mean that you will not buy new gadgets, clothes, or shoes. Rather, this habit means you will strategically spend depending on your planned purchases.
Investopedia emphasized in their article that knowing your needs and wants will help you achieve your financial success.
4. Pay off your debt
Be debt-free this 2022!
Keep a list of your existing debts and track your payment dates. After this, make a repayment plan for every debt you have.
In an article in CBNC about financial success, you may rank your debts by interest rate, or you may use the snowball method of prioritizing small debts first.
Whichever method you choose, the important thing is you commit to paying your debts.
5. Give and tithe
Two of the most overlooked habits towards financial success are giving to other people and tithing.
Tithing is setting aside a portion of your money to support Christian workers and the ministry of your church. Aside from this, you can also pay forward by helping people outside your churches.
When you give, you bless other people with what you have and let God pour new blessings onto your hands.
“Give, and you will receive. Your gift will return to you in full—pressed down, shaken together to make room for more, running over, and poured into your lap. The amount you give will determine the amount you get back.” (Luke 6:38 NLT)
Do you want to start blessing someone today? Begin a new money habit today!