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Today’s post comes from Liz, a fellow S&S reader. Want to build some money habits to build your wealth? Liz’s tips will help you do that!

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4 Financial Habits For A Healthy Bank Balance!

We are well into 2018 now. And many of us will have set up financial goals at the start of the year, only for them to have not quite got off the ground.

It’s never too late to adopt good financial habits, and you still have the opportunity to completely overhaul your finances for a healthier bank balance.

Any changes you make now will have a positive effect for years to come! And hopefully this new way of managing your finances will become a habit for the future.

What are your goals?

You may have specific future financial goals such as saving for a deposit on a house, wedding, or early retirement. Or maybe you want to get on top of your business finances.

If you have a clear goal, your are more likely to achieve your vision. Make small achievable savings targets and assess the success of your plan at regular dates.

If you run a small business your goal may be to stay on track with budgeting and profits. To do this you could outsource your accounting and even Paystub generator tasks to virtual accountants. This will free up valuable time for you to concentrate on generating more profit.

Restructure debt

Most people have some kind of debt, whether it’s a credit card or mortgage. It is important to concentrate on paying off the debt with the highest level of interest rate first. Usually this is debt relating to credit cards. Managing credit cards can seem like a juggling act, but it’s important to not let debt spiral out of control.

If debt is getting out of hand, don’t despair. Seek assistance from a financial advisor or specialist debt experts.

It is essential that you always pay your rent or mortgage. Going into arrears can cause repossession or court proceedings. If you are struggling, tell your mortgage lender. They may offer help with managing future payments.

Save for emergencies

It is advisable to save for an emergency by putting aside money into an emergency fund. This may seem an impossible task, but with careful budgeting, you should be able to put aside a small amount each month.

If you have an emergency fund to pay for situations such as your car breaking down or replacing a washing machine, you are less likely to rely on credit cards.

Stick to a budget

To budget effectively you need to spend less than you earn.

It sounds such a simple concept, but is easier said than done. You need to know exactly what you’re spending your money on each month in order to identify areas where you can make savings.

A coffee on the way to work, a gym membership you no longer use…these little things all eat into your budget. Small changes can have a huge effect on the health of your finances, don’t underestimate the power of the saying “look after the pennies and the pounds will look after themselves”!

By adopting the above financial habits you will enjoy a healthier bank balance in the future. You will have more to spend on the luxuries in life!