7 habits to achieve financial stability

1. Pay bills immediately

A vital financial habit is to pay the bills when they come in. Even better, if you can pay the bills through automatic deduction, so much the better.

2. Evaluate your expenses and try to live frugally

If you have never tracked your expenses I recommend you try it for a week. Write down on a piece of paper every little expense you make, if it’s only a piece of gum! Then evaluate how you are spending your money and see if you can make cuts somewhere. Decide if each expense is absolutely necessary.

3. Make your savings “self-serve”.

Make this a priority, especially if you haven’t been able to establish a solid emergency fund yet. Every time you get paid, have an amount automatically transferred to your savings account. Don’t think about this transaction, make it happen automatically without you having to do it.

4. Eliminate and avoid debt

If you have credit cards, personal loans, or other types of debt you need to start a plan to eliminate your debt. Make a list of your debts and list them with the smallest debt first and the largest at the end.

Focus on paying off the first debt, pay off as much as you can, if it’s just an extra $40 (more would be better). Once the first debt is paid off, celebrate it and start paying the next one. It may take years but it is a very rewarding and necessary process.

5. Keep your family safe

I would say that the first step for this is to save for an emergency fund. That way, if something happens, you have the money to cover the expenses.

6. Read about personal finance

The more you educate yourself, the better off your finances will be.

7. Use the envelope system

This is a very simple system to control how much money you have for expenses. Let’s say you leave three amounts each month, one for gas, one for food, and one for eating out. Take that money out on payday and put it into three separate envelopes.

That way it’s easy to control how much money you have left to spend. If you see that you regularly spend money from one category, it may be a good idea to rethink your budget.