Your financial habits determine how you manage your personal finances. How you spend is a habit. Whether or not you save is a habit. If you worry about your finances, right, a habit.

Becoming aware of your own financial habits can be a great advantage in these tough economic times.  We develop habits throughout our lives and financial habits are not different, they are developed.

Financial habits were generally learned and developed during your childhood.   How your parents handled debt management, financial affairs or a financial crisis affected the development of your personal financial habits…good and bad habits.  

Learn about financial habits that you may have developed and how you can turn the bad ones around.

Your Guide To Financial Habits:

Tip #1  – Debt: A Bad Financial Habit

• If your parents were always in debt, than debt may not bother you; you are just following in your parents foot steps.   Your parents survived, so why can’t you?
• Your parents didn’t need debt management help so why should you?
• If you want to be in debt, great, go for it.   But having lots of debts will not get you ahead.   Debt may not have buried your parents, but in today’s economy, debt is a burden you do not want to carry, it could bury you.
• Getting out of debt is a slow process, but if you start when the debt is still small, you can turn it around quicker.  
• Debt management begins with you.
• Get started as soon as possible.  Maybe you will need debt counseling to help you with your debt management.    Being a chip off the old block of your parents is terrific, just not in regards to the financial habit of debt.

Tip #2  - Indifference: An Ugly Financial Habit

• If your parents discussed money problems in front of you when you were young  maybe you developed an indifference to money; so today you just spend without worry.   This is an ugly financial habit to have, you should never be indifferent about the value of money.   
• Spending money improperly will catch up with you and could lead to debt problems.
• If you do not already budget, start budgeting.
• Do not buy what you want – only buy what you need.
• You see something and you must have it – you cannot wait – stop that – if you don’t need it, don’t buy it.
• If you do not check your credit scores at least once a year – start doing it.  You can get a free credit once a year from each of the 3 national credit reporting agencies.
• A credit score above 750 is a good credit score.
• Work on getting your credit scores above 750; it will make a difference in how much you pay for everything you buy.
• Ignoring your credit scores is a bad financial habit.
• If you need credit repair help, get it.
• Don’t delay in calling some credit repair services; their job is to give you credit repair help….call them.

Tip #3 - Frugal: A Good Financial Habit

• If your parents were always seemed worried about making ends meet than you probably never wanted to grow up that way.
• You learned basic saving and spending skills and are now a good saver and very frugal, bravo, good job.
• You only buy something when it is on sale – great move.
• You have a rainy day fund built up with 6 months of income just in case of an emergency.
• You pay your bills on time to avoid late fees.
• You never spend up to your credit limits, or for that matter, you never exceed your credit limits.

If you know your financial habits you will know how to manage your finances.  

Money decisions affect many aspects of our lives….job performance and relationships are two most important areas.   Spending and saving decisions are the result of your financial habits. It is in your best interest to explore and analyze your personal financial habits and make changes where possible.

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