When you pay biweekly on your student loans, you end up making a total of 13 payments per year. You can either allocate more money per month to them or begin a biweekly payment plan. You can eliminate this burden as soon as possible by making extra payments on your loans. While federal student loans are generally a low-interest debt, they can be a decade-long drag on your finances. This way it can grow when you don’t need it but still remain liquid for when you do need it. You can keep your savings in an interest-bearing bank account that is still easily accessible, like a high-yield savings account. Using automatic bank transfers, you can save money with minimal effort. If needed, keep yourself honest in your savings efforts by automating the process. Whether it’s job loss, auto repairs, home repairs, medical expenses or something else, having an emergency fund covering three to six months of expenses will help you get by in these situations. Save for an emergencyĮmergency savings is a great way to build better money habits, as it keeps you from falling deeper into debt if an unexpected financial burden strikes. And when it’s time to retire, you have a valuable asset you can either live in or sell and downsize, using the proceeds to further pad your retirement savings. This can help you on your way toward building net worth, which we will get to later.Īnother benefit of a mortgage is that it’s one of a few good debts you can have because your home’s value will likely go up as the loan value falls, steadily growing your net worth over time. Get a good credit scoreĪ good or excellent credit score can open many financial doors for you, including the ability to become a homeowner via a low-interest mortgage. You can further streamline your debt repayment by using a debt consolidation loan or a lower-interest line of credit, like with Tally†, which can help you lower your interest rate and reduce your number of monthly payments. Whether you choose to use the debt avalanche method or the debt snowball method to pay off your debt, the key is to get started sooner rather than later. Build better money habits by paying off this debt as quickly as your budget will allow. Crush your high-interest debtĭebt can be a big drag on your financial goals, especially high-interest debt, like credit card debt. Just realize the mistake you made, learn from it and continue following your budget for the rest of the month. If you stray from the budget, don’t give up. The key is to follow the budget as closely as possible. You can also use budgeting software - such as Mint, EveryDollar or You Need A Budget (YNAB) - to streamline and automate parts of the process. There’s a wide range of budgeting plans, including the zero-based budget and envelope budget, so you can choose the one that suits you best. One of the first steps to building better money habits is to create a monthly budget and follow it every month. It’s important to remember that there are ways you can improve your financial well-being.īelow are 10 better money habits that will give you a clear path toward financial success. However, no one is perfect, especially when it comes to managing finances. We all work hard to earn a living and provide for ourselves and our families.
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