Bad habits are easy to form but good habits take a little more effort. This is true whether you’re trying to lose weight or save money. When it comes to your finances, however, there’s never been a more important time to knuckle down and sort out your spending habits. 

The cost-of-living crisis has only just begun to take hold and we’re all going to have to learn to make our pennies stretch a little further in the coming months. So, here are a few positive financial habits you might want to consider trying on for size.

We appreciate they might not be as easy to slip into as a “six biscuits a day” habit but give it some time and you’ll be shocked at how easy it is to achieve your financial goals next year and beyond.

Achieve your Financial Goals

1. Write down your goals

Writing down how much you want to save or cut back on your spending can be a powerful motivation.

We’re not just talking about making a note on your smartphone either; write it in big capital letters in a felt tip pen and stick it to a notice board in your office or your kitchen.

The more visible it is the more inspired you’ll be to achieve it. Also, don’t try to do this alone. Tell someone else (someone your trust) about your goals so you have some accountability.

2. Focus on SMART goals

Be realistic. Some goals can be easy to plan for but almost impossible to attain so stick to goals that can be achieved practically and in a relatively short timeframe.

Being smart also means compartmentalizing where possible. Break down your big goals into smaller goals and when you reach those smaller goals, you’ll feel like you’re actually getting somewhere.

Build this all into a financial framework and stick to it as stringently as possible.

3. Rethink your budget

Set a budget for each month and stick to it. To help you keep track of what you’re spending, consider setting up a separate online account for your monthly spending and only put a certain amount into it at the start of each month.

When the money runs out, that’s your spend for the month done and you might just have to spend a couple of weekends in!

4. Allow flexibility in your spending

Don’t be too strict month to month as this will ultimately lead to misery and resentment.

Allow for some flexibility where you can spend more one month and less the other. For example, in December you’re going to want to spend more as Christmas is approaching and you’ll also want to set aside a little extra for a summer holiday in June, July or August but might want to spend less in quieter months like February, September and November.

5. Celebrate your accomplishments

At any financial milestone, celebrate your accomplishment and try to give yourself a pat on the back. Even consider a little reward. You’ve earned it!