10 great financial habits to make you more confident with your wealth

The beginning of a new year is the perfect time to change some unwanted habits, and adopt new ones that might be better for you. This could be exercising to stay healthy, cutting down on chocolate and sugary sweets, or reducing the amount of alcohol you consume.

That said, there may also be financial changes and good habits that you may want to adopt, which may help boost your wealth and provide peace of mind. Read on to discover 10 positive financial changes you could make in 2022 that you may then thank yourself for.

1. Boost your financial knowledge

Improving your overall financial literacy can help bolster your understanding of your financial position, which could help you make better decisions around money and wealth. It could also help you feel more confident when dealing with your finances and sidestep decisions you later regret.

One way to do this might be to listen to a personal finance podcast, which covers savings, investments, and pensions. Alternatively, you might want to work with a financial planner to better understand your current and future financial position.

2. Review your pension situation

The beginning of a new year is a good time to consider your existing pensions, or whether you need to start one. If you already have pensions, you can confirm the value of your pension pot and how much income it might provide in retirement.

A financial planner will assist with this and provide options to help you achieve the lifestyle you deserve when you finish work.

3. Regularly rebalance your investments

If you have investment portfolios, they will contain different types of funds and assets, such as stocks and shares, government bonds and even property. Over time they will all change in value, which may alter your exposure to risk and growth potential, meaning you might be out of pocket if the markets suddenly change.

Rebalancing your investment could help ensure a better financial outcome for you, which could allow you to look forward to a brighter tomorrow.

4. Start budgeting

Working to a budget could provide peace of mind and allow you to look forward to a better financial future. A budget is central to managing your cash in a way that avoids unexpected financial mishaps, allowing you to feel more confident and meet your liabilities without falling into debt.

You’ll also have peace of mind you’re less likely to accidentally overspend.

5. Pay more off your credit cards

If you pay the minimum every month, you’re likely to pay significant amounts of money as credit cards typically charge high levels of interest. Paying more than the minimum could not only reduce the amount you pay, but it could also reduce the time it takes and may improve your credit score.

If you pay off your credit card balance at the end of every month, typically no interest will be charged.

6. Create and maintain a financial strategy

Creating a long-term financial roadmap could help you identify your goals in life, opportunities to grow your wealth and potential risks to your finances. Key to your strategy is to be as detailed as possible, including the lifestyle you want, where you want to live and the retirement lifestyle you desire.

Once you have created it, revisit it regularly to see if anything has changed. Working with a financial planner means they will be able to provide options to help you achieve your goals when needed.

7. Don’t give in to impulse shopping

This could really help ensure you don’t pay high credit card charges or fall into debt. When you see something you like, don’t buy it immediately.

Instead, tell yourself that if you still want it in a month’s time you will buy it. Take time to consider carefully during that time whether you really want it or not. If you do buy it, you’re much more likely to enjoy it.

8. Check your finances regularly

Setting time aside once a month or more to check the money coming into and leaving your accounts is a great habit to get into. You will have a clearer idea of where you stand financially and are more likely to spot any unusual transactions that might be a scam.

9. Build an emergency fund

Every financial planner will tell you it’s essential to have an adequate emergency fund. Typically, you should have three to six months’ worth of expenditure that is in an easily accessible account.

Putting money aside every month to create or boost your fund provides you with the knowledge you’re more likely to be able to cope financially when the unexpected happens. Furthermore, you won’t have to rely on credit cards, which can be expensive.

10. Get organised

There’s nothing worse than having to do a self-assessment tax return when you’re disorganised. Completing a task that many would rather not do is made worse when you need to find receipts, invoices and other documentation that you’ve put to one side and forgotten about.

Create an effective filing system and get into the habit of spending time once every other week filing everything away. It will give you peace of mind that you will know where everything is when you need it.

Get in touch

As specialists in advising women, we concentrate on connecting your values to your lifestyle and wealth. Our goal is always to help you feel more comfortable and confident about your relationship with money, which will naturally lead to you having more confidence about your future and life in general.

If you would like to discuss your financial situation and how we could help you become more financially independent, call us on 0116 262 1414, we’d be happy to talk.

Please note

This article is for information only. Please do not act based on anything you might read in this article until you have sought professional advice.

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