New Year, New Me: 8 Good Money Habits To Adopt This Year

Some say New Year’s resolutions are made to be broken, but let's approach the New Year differently. If you want your money situation to be better this year, I say we make a habit of it. Or maybe eight habits. 2019 is the year you’re going to turn your finances around if you take up these eight money habits:

1. Check your balances daily

One of the biggest reasons we get into financial trouble is that we avoid. When money gets stressful, avoidance tends to follow. Whatever your money situation is, you need to face it. You need to look at it. You can’t fix anything you’re not on top of.

2. Sign up for credit monitoring with alerts

Just like your account balances, you need to stay on top of your credit score. Many Canadians have no idea what their credit score is. You need to know it to make sure it’s going up. Sign up for Refresh's credit score service and you'll receive alerts if there is any suspicious activity on your credit report. Click here.

3. Budgeting

No list of better financial habits would be complete without budgeting on it, and we’re serious. You have to get a handle on what’s coming in and what’s going out, and where you can cut down if you have any hope of making your financial future any brighter. Use an app like Mint to help you out. You have to see the whole picture to change the whole picture.

4. Leave the credit cards at home

You’d be surprised how much money you will save if you just spend with the cash you have on hand. The spend now, pay later model of a credit card makes it far too easy to spend what you don’t have. Leave the cards at home, and stick with the money you have. You’ll save on the things you don’t buy, and you’ll save on the interest. It's a win, win!

5. Home cooking

We've all been guilty of doing a little too much eating out and the bills add up faster than a lot of other expenses. Limit your visits to your favourite pizza place, and save your money instead.

6. Automate

Set up all your bill and credit card payments to come out of your account automatically. You can also set up automatic transfers from your checking account to your high-interest savings account, so you can save money even when you’re not thinking about it. Making everything automatic makes it less likely you’ll forget it.

7. Pay down your debts any time you want

If you get a big tax return, an inheritance, or a bonus at work, use the money to pay down your debts. Don’t be tempted to spend it.

8. Take five

Before you make any large purchases, wait five days and see if you feel the same way after. With time and a little thought, often we realize we don’t really need it after all. Take five, and save your money.

It’s important to remember that turning your money situation around isn’t rocket science. There is no magic formula, no secret cure to financial woes. Instead, it’s a pretty simple set of habits that turn your money around and none of them are all that hard. In fact, the hardest part is self-discipline. If you can adopt these eight habits, though, 2019 will be the year you always remember as the one when everything changed.

What other habits are good for our money? Let us know in the comments!