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personal finance is very subjective and there are many strategies out there that
can adapt better to different personalities lifestyles and priorities but independently
of the particular system you use or the goals you're trying to reach one thing is for certain
a healthy personal finance landscape is usually fostered through healthy personal finance habits
yep healthy habits aren't only all about you know meditating journaling eating healthy and
exercising the way you manage your finances your consistency in doing so and the regular system
of financial housekeeping can do a lot for your financial health so before we get started about
the specific personal finance habits you can implement to reach your goals i want to talk
about a powerful tool you need to master before we get into those habits and that is intention
implementation it is usually said that consistency is key to achieve goals and implement habits into
your routine but that's easier said than done after all consistency is hard to achieve because
it is deeply tied to our motivation and sometimes it's hard to find motivation within ourselves
intention implementation acts as a bridge between the goals we are trying to achieve
and our motivation broadly speaking if you want to create intention implementation you
should set a habit like this i will behavior at time in blank location so now that you
have this in mind let's see your five personal finance habits and how you can use this formula
of intention implementation to seamlessly incorporate each one of them into your routine
so habit number one is set a fixed day in your calendar to pay all bills
bills pile up pretty fast and they're usually all due in different days of the month which
can make tracking them and their payment and their due dates a little bit tricky
to avoid this i set a fixed day in my calendar to pay all of my monthly bills
and this happens on my first bill's due date which is on the 20th i keep an excel spreadsheet that
tracks monthly bills such as house utilities subscriptions gas and groceries expenses
among many others and i keep this spreadsheet right in front of me as i work through my bills
and pay them one by one using my home banking app this usually takes me no more than 10 minutes once
per month and it relieves me of the stress of having to constantly think about those payments
so using our formula this habit could be set up like this i will pay all of my monthly bills at
the first due date of one of my bills in my office before i start working in the morning
your second habit is doing a major review of expenses at the end of the month
if you're starting your personal finances journey a good way to gain more awareness about where
you're spending your money is tracking those expenses every single day for five minutes and
then do a major review of all of those expenses by the end of the month signaling where you want
to cut back and summing those expenses by category to get a better overview of your spending habits
at the end of that exercise set a precise goal for next month like reducing money spent on takeout by
50 for instance and in your new expenses page for next month write down that goal clearly at the top
of your spreadsheet so that every single day as you log in your expenses you are clearly reminded
of what you're trying to achieve with your money by the end of the month okay so once again using
our formula this habit could look like this i will do a major review of my expenses at the
last day of each month in my kitchen while eating breakfast remember of course that all of these
behaviors all of the times and locations can be completely customized and they're up to you
habit number three is remembering to budget for needs first and then budget for projects of
course this all depends and varies from person to person but the idea here is to always remember to
budget in the first place for your usually daily spending like food entertainment social activities
transportation education and so forth and only after those values are set in stone or at least
partially will you look at what remains in your account and think about projects house renovation
purchasing a specific item saving up for a trip or to buy a special gift needs first projects
next personally i budget for projects once a year so this is not a recurring habit so you should set
it up in an even more specific way than the other two examples so this could look like
i will budget for projects every year in january during my annual expenses review in my living room
your fourth habit is giving yourself an allowance and leave any spontaneous spending
to that allowance consider this your pocket money so spending habits you don't need to
justify even to yourself this money doesn't need to go into your expenses tracker because it's
supposed to be guilt-free and something that you give yourself after you've paid your bills
and saved for projects and saved for needs it's supposed to be reasonable and having money that
you don't need to justify even to yourself is a good way to feel some freedom in spending without
losing control of your money and jeopardizing your savings and the payment of your regular expenses
the amount of money you establish is of course up to you but always remember to
only deduct it from your income after usual expenses and savings
okay so this could look like i will set up my allowance to a different account every single
month after making my savings transfers in my home banking app or i will withdraw my allowance every
single month after making any savings transfers after i get some coffee in my favorite coffee shop
and finally dedicate 10 minutes a day for financial housekeeping i call daily financial
housekeeping everything from checking your balance to searching your email for any bills to pay
tracking yesterday's expenses manage bank statements update your savings plan
and so forth it shouldn't take more than 10 minutes a day and it's something that you can
easily incorporate into your other habits like your morning or evening routine
staying on top of the data and ensuring you know exactly where your money is going to
every single day can set you up for micromanaging your money which in
turn can be incredibly helpful to implement and reinforce personal finance habits in the long run
so your final habit can be i will run through my expenses bills bank statements and email
for 10 minutes every single day while taking a cup of coffee in my kitchen
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i really hope you've enjoyed today's video and i'll see you next week bye guys
you