To help you thrive in 2023, we have put together some bad habits to kiss goodbye. I am not sure why but sometimes it is easier to give up habits than try to learn new and better ones, would you agree? Continued inflation and rising interest rates (as well as those of you coming off fixed interest rates) mean it’s time to pay attention.
Our top tips:
Mindless spending
If you must go shopping, take a list of what you need (but first let’s be clear on needs, not wants). If you are tempted by sales and marketing gimmicks, refer to your list, if it is not an item you need then walk on by. If you love shopping for no reason, take a list of upcoming birthdays or events so that you only purchase with intention.
Buy Now Pay Later
These facilities are designed to appear harmless (and if used correctly they may be) but BNPL causes harm when you spend when you didn’t intend to. Retailers can experience a 40% increase in sales by offering these facilities on their sites – why? Because of a psychological framing effect as your brain is recognising the payment and not the purchase.
Delaying or skipping investing
Yes, markets are topsy turvy but investing is for the long term. Trying to time when to start is difficult. Start small and be consistent, let the benefits of compound interest work for you. Your future self will thank you.
Justifying expenses
It’s the best friend to mindless spending. I must admit I am guilty of this one. Again, take a list of needs and be tough with yourself. No means no.
Not reviewing your budget (regularly)
I can almost hear your eyeballs rolling but you should be aware of your upcoming expenses (quarterly or annual bills; big birthday months etc) and prepare ahead for these. Work out when these will occur and save in advance by putting the money for big expenses in a separate account – when the expenses arrive, you will have the funds set aside.
Ignoring that your fixed rate will soon expire
If you are one of the thousands that have a low fixed rate maturing this year, my suggestion is to calculate (the banks all have home loan calcs on their websites) what your repayments will increase to and start this now (it will increase your savings for now but help you to manage and adjust ahead of this change).
If you still need help, get in touch to find out more about our cash flow management program.
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