In 2024, developing good money habits is more important than ever. The rapid changes in the economy and the financial landscape require everyone to proactively manage their finances. Here are 10 money habits that you should consider adopting in 2024:
Automate Your Savings: Set up automatic transfers from your account for savings. Most banks render this service if you request for it. This ensures that a portion of your income is consistently being saved without requiring constant effort on your part. Set a limit on your income no matter how small; at least 10% should be set aside for your savings. Don’t even consider it part of the money you should spend at all.
Track Your Spending: You must know your spending pattern. Spend within a budget that works for you. Stop the habit of reckless spending. Anything outside your daily, weekly, or monthly budget should feel like a taboo to you. Understanding where your money is going will help you identify areas where you can cut back and save more. You complain of lack of money only because you cannot track your spending, not because you don’t have money. The day you start tracking your spending, you will be amazed at how much money passes through your hand, daily, weekly, monthly and yearly.
Invest in Yourself: Continuously invest in your skills and education. Whether it’s through courses, workshops, or certifications, enhancing your skills can lead to career growth and increased earning potential. I read a publication about a 61-year-old man who graduated as the best student at the University of Lagos; Mr Sobowale graduated with a 4.84 CGPA to emerge as the best-graduating student. UNILAGA described him as a “trailblazer who shattered stereotypes. Never stop investing in yourself; acquire new skills and learn new things.
Avoid Impulse Buying: Before making a purchase, especially for expensive items, take a step back and evaluate whether it’s a necessity or just a fleeting desire. Avoiding impulse purchases can save you a significant amount of money over time.
Stay Informed About Financial News: Stay up-to-date with the latest financial news and developments. Understanding the broader economic landscape can help you make informed decisions about your investments and financial planning.
Set Financial Goals: Whether you’re saving for a vacation, buying a home, or building an emergency fund, setting specific financial goals provides motivation and direction for your money management.
Diversify Your Investments: Consider diversifying your investment portfolio to spread risk and potentially increase returns. Remember the popular saying, don’t put all your eggs in one basket.
Check your financial well-being regularly. Successful people don’t live their lives to chance
Practice Mindful Spending: Be intentional with your spending by aligning your purchases with your values and long-term goals. This can help you prioritize what’s truly important and avoid unnecessary expenses.
Give Back and Pay It Forward: Incorporate charitable giving into your budget. Whether it’s through donations or volunteering your time, giving back not only helps others but also brings personal fulfillment.
Adopting these money habits in 2024 can set you on the path to financial security and success.