In part one of this two-part blog series, we went over some of the top ways to go about correcting bad money management tips you may be holding onto. Changing just a few simple habits may have more of an impact than you had ever imagined on your overall finances, especially if you’re looking to increase your savings and build a nest egg of sorts.
At Diversified Members Credit Union, we offer numerous services to help Detroit clients keep their money in order, from financial planning solutions to numerous account types, loan programs and more. What are some other top recommendations we make to clients on how to kick their bad money habits and move forward with positive ones? Here are a few.
Too Much Going Out
While no one is saying you can’t have a little fun every now and then, if you find yourself regularly overspending each month due to too many nights out or related expenses, it’s time to reevaluate your budget and make some changes. One way to do this is to take a closer look at what you’re spending your money on – track all of your expenses for a month and see where you can make adjustments.
If you can’t seem to curb your spending even after doing this, it might be helpful to start tracking your net worth so you have a better idea of how much money you’re spending and what could be put towards savings or investments. Doing this can help motivate you to make changes, as the goal becomes seeing that number grow over time instead of shrink.
Improper Retirement Savings
Even if you have generally good day-to-day money habits and spend within your means, if you’re not properly saving for retirement, you’re doing yourself a disservice. Many people wait until they’re closer to retirement age to start saving, but the earlier you start, the more time your money has to grow.
At Diversified Members Credit Union, we offer numerous retirement savings options, such as 401(k)s, IRAs and more, to help members save for their golden years. Talk to a financial advisor to see what would be the best option for you, depending on your age, income and more.
In addition, you should inquire with your employer about matching programs – oftentimes, if you contribute a certain percentage of your salary to your retirement savings account, your employer will match it. This is an easy way to double your savings with little effort on your part!
Finally, another bad money habit that can be tough to break is buying unnecessary things – whether it’s a new outfit every week, impulsively purchasing items online or anything else of the sort. If you’re not careful, these small expenses can add up and have a big impact on your budget.
One way to try to curb this spending is by creating a budget and sticking to it. This may be difficult at first, but it will become easier over time. And, as mentioned before, if you find that you’re struggling to stick to your budget, start tracking your net worth so you have a better idea of your progress.
Breaking bad money habits can be tough, but it’s definitely worth your time. For more on how to do this, or to learn about our programs that might be helpful here, speak to the staff at Diversified Members Credit Union in Detroit today.