How to Create Good Financial Habits

Creating saving habits and auto-investing habits is the easiest way to become financially independent. The first step is getting control of your expenses and start developing good spending habits. Here are a few ideas to help you create good financial habits.

_____ Keep Your Bills in ONE PLACE. Create a bill drawer (or folder) and put all your outstanding bills and statements inside. That way you’ll never misplace your bill. And before you put a bill in the drawer, review it to check for mistakes. Companies do make mistakes — and you shouldn’t pay more than you should. Plus, reviewing each bill as it comes in will help you stay on top of your financial situation. Don’t be a financial ostrich: Don’t hide from your bills. Know what you owe!

_____ After You Pay a Bill, File the Statement. Don’t let your bill drawer get junked up with paper. Only keep unpaid bills in your bill drawer. You can get a simple hanging file box at your local office supply store. Once you pay your bills, drop them into the correct file and you’re done.

_____ Pay Bills the Day the Money Arrives. Avoid being late — and avoid late fees. Paying late fees is like giving away money… and it adds up fast. Can you really afford to pay $25 extra a month in credit card late fees? (That’s $300 a year, by the way.) Don’t wait to pay your bills.