Wallet Wellness: 5 Money Habits to Bring Into the New Year

Happy New Year and welcome back Wallet Wellness - your midweek source of practical financial tips to elevate your money management skills!

Today, we are taking a look at the financial habits we should be kickstarting 2024 with 💪.

We hope you had a chance to review the last edition, where we broke down the Four Money Mistakes We are Leaving Behind in 2023 since they have been sabotaging the wellness of your wallet.

Let’s dive in!

MONEY254 TIP OF THE WEEK

In with the New: Money Habits to Create in 2024

We see the start of a new year as a chance to begin on a clean slate. And when it comes to your wallet, it’s all about yet another chance to focus on what keeps it full and overflowing to power your most cherished financial dreams.

That’s why today we are looking at some of the wallet-friendly habits to nurture in 2024.

Habit #1: Pay Yourself First

Perhaps the most common advice you received when you started earning some money of your own. Save first, spend second. Whether you are employed or running a business, paying yourself first will help you to automatically avoid unnecessary expenses. It is called paying yourself first because this money is supposed to be used to invest in your future. 

• Save first, early and often

• Do this consistently by setting up automatic transfers

• Keep your savings in the right place; considering returns, purpose and liquidity. Read More. 

• Have a short- and long-term investment plan: Your savings aren’t meant to sit idle.

Habit #2: Review Your Spending Every Month

How you spend the money you have now will significantly determine your financial future. Often, our financial needs and wants may seem too many and too urgent that overspending creeps in. That is why understanding where your money is going each month will be great for your wallet wellness this year. 

• Create a realistic budget that you can stick to

• Aim to live below your means each month

• Make time for your money: track your spending

• Review and make adjustments progressively: It’s a marathon, not a sprint. Read More.

Habit #3: Slow Down Before Purchasing

It might not seem like it, but even if you are the most infrequent shopper, you could have done with much less than what you’ve been spending your money on.

Slowing down before making a purchase decision becomes even more important when it comes to big-ticket purchases; electronics, furniture, appliances and so on. And it’s not about not buying stuff, it’s about getting the best possible value out of your money.

• Create a purchase priority list with a timeline (and a budget)

• Use the 30-day rule for any unplanned purchase

• Get rewarded for buying the items you do need; utilise cashbacks and discounts on groceries, fuel etc. that come with using certain payment methods such as cards. 

• Avoid purchasing wants on credit

• Channel foregone expenditure to your investment fund

Habit #4: Keep Learning

Things keep changing. And in today’s world, change is as constant as it is rapid.

If you are keen on the wellness of your wallet, you have no option but to stay up to date with the latest developments in the world; your area of expertise, politics, technology and everything that affects your ability to make and keep your money.

Also as important, you have to keep building your knowledge of personal finance.

• Create a personal finance learning calendar with monthly goals. Read More.

• Income: Keep up to date with ways to earn more money

• Career: Keep updating your skills

• Network: Curate a network of people you can learn from and with

Habit #5: Stick to Your Plan

Sticking to your plan is not as straightforward as it reads.

You must have a plan that has a realistic chance of working, is competently researched and fully led by you, not imposed by others or unduly influenced by your seniors, peers or family.

Staying on course with your plan is proven to be much more challenging than coming up with one.

• First, set up goals for the life you envision if you haven't already. Don’t drift through life. It will feel like a pointless grind. 

• Be specific about the end goal.

• Be realistic with the time you have to accomplish the goal. Read More.

• Break it down into small manageable parts. Read More.

• Be accountable to yourself. Read More.

• Surround yourself with the right people.

CONCEPT CORNER

Assets, Liabilities, and Net Worth

As you start the new year, perhaps it’s a good idea to calculate your net worth and create a snapshot of your current financial position. You can then have a good picture of where you are starting the year at, what you need to be working on and the strategies that are applicable in line with your current position. Read More.

PSYCHOLOGY OF MONEY

A Scarcity Mindset Can Make You Poor

People generally have two approaches to life and money. A scarcity mindset where one believes resources are limited and there is not enough to go around; and an abundance mindset where one believes the world is full of enough resources and time for everyone. If you go the scarcity route, you are very much likely to have a very unhealthy wallet. Read More.

MONEY254 #MONEYTOK

Getting Your Finances in Shape After the Holidays

Not proud of how you spent your money during the holidays? We know the holidays may have done a number on some of us, even the most prepared. January gives us a chance to get back on track. We have some tips for you in our #MoneyTok below. You can also read in detail here.

@money254hq

January provides a good window for taking control of your finances for many reasons. Temptations to spend are usually low. First, there is... See more

That's it for the first Wallet Wellness edition of 2024! We hope these financial tips have added some energy to your mid-week hustle. We’ll be back in your inboxes again with our Money Weekly news recap this Friday.

Also, don’t forget to download the Money254 App on the Google Play Store, and remember that we can help you compare over 300 loans, savings accounts, current accounts, and more if you’re thinking about your next product.

Here’s to a great 2024!

Eric and the Money254 editorial team.