This year, rather than setting wild resolutions you’ll ditch the same month, why not pick up some useful money habits instead?
Money habits are small acts that improve your financial well-being. Small steps towards reaching your goals. Small lifestyle shifts that over time, make a real difference.
What’s the secret ingredient for these habits? Focusing on getting just 1% better…
We get it. Improving by 1% hardly seems groundbreaking. If you blinked you could miss it. Why bother?
Because the difference one tiny improvement can make over time is seriously impressive. If you focus on becoming 1% better every day for one year, you’ll end up thirty-seven times better by the end Begin the 1% journey - you’re already climbing the ladder to success 🪜
1. Get ready for your next pay raise
Right now. Work for your next salary negotiation begins after your previous one. Never negotiated before? 2023 can be your lucky year! Create a ‘wins’ folder on your computer. Fill it with any positive feedback or successful campaigns you’ve worked on. Start building the case for your next increase now!
2. Schedule monthly spending reviews
Call it ‘Coffee & Calcs’. Get to know your current spending habits by setting up monthly reviews. Categorise your spending into three buckets: ‘Needs’, ‘Wants’, and ‘Future Me’. Track how much you’re spending on each bucket. Set small spending goals. (Check out our ‘budgeting’ module for more inspo!)
3. Create a 'wants' money pot
Spend on yourself guilt-free. Because Christmas isn’t the only time for giving! Make sure your budget factors in spending money on your favourite things. This will keep you motivated. Purely relying on willpower isn’t the way to go…
4. Invest in a passive portfolio every month
Build your wealth. Why? These are individual investments combined into one basket. They’re diversified, so help spread out the risk.
Passive funds essentially run on their own accord and follow the stock market index for you. They come with lower charges and are a way to try out ethical investing. That’s all the claps from us!
5. Talk about money to your friends
Break the taboo. This is a great opportunity to share your financial worries and get advice. Advice that can sometimes lead to big revelations. That fact you’re underpaid in your industry, or that a friend you thought was ghosting you is cancelling plans because their financial situation has changed.
Opening up the dialogue is the first and most important step.
6. Talk about money to your friends
Nail your number. The better your credit score is, the more likely you’ll be approved for credit cards, loans and given more favourable interest rates. If you’re looking to take out a new credit card, business loan or buy a home - your credit score matters. Monitor it each month using Money Supermarket’s free tool. They’ll even share pointers on how you could improve.
7. Schedule money dates with your partner
Light a candle. Are you and your partner financially on the same page?
Chances are, there’s always some room for improvement. Monthly money dates are a chance to revisit how you split up household expenses (to make sure it’s fair), or discuss working towards financial goals (saving up to move in together).
Our ‘money in relationships’ module is a good place to explore this further!