Groundhog Day — a fun little Pennsylvania tradition where residents await sightings of a groundhog named Punksutawney Phil and a 1993 film starring Bill Murray that must relive the same day over and over again — in honor of, we sought advice from financial experts. About financial habits that you will definitely want to repeat. Here are his nine good ways to practice with persistence.
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Check your balance regularly
According to Maggie Klokkenga, financial coach and planner at Make A Money Mindshift, if you only check your bank and credit card accounts when paying bills, you’re missing out on important information. “If your balance is significantly different than you thought it would be, review your transactions for the week. I can pay attention when I want to.”
“It also helps us identify fraudulent activity and notify our bank or credit card company before further damage is done,” she added.
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pay yourself first
One of the most important financial habits anyone can develop is to pay for themselves first, says Brian Carney, certified financial planner and co-founder of RiversEdge Advisors. “It’s a very simple strategy of treating savings as a necessary bill and choosing a dedicated amount to save each month.”
Super easy to automate the withdrawal of checks to your savings or investment accounts. “People who start this habit will find themselves working harder on their plans and actually starting to spend their savings.”
Work on dollar cost averaging
According to Nikos Melachrinos, co-founder and CEO of Gen Z personal finance app Quirk, if you can afford more than your emergency fund, you should go for dollar-cost averaging.
“Every month, set aside a certain amount and put it in the stock market. Your best bet is a low-cost index fund (such as VOO or MSCI) that you can set up and forget for at least a few years.”
pay bills on time
Not only does it make sense to pay your bills and loans on time every month, but “in general, making payments is good financial practice and helps build credit in particular.” said Amanda Wallace, Head of Insurance Operations for MassMutual. “If you have nothing else to do, pay on time. In fact, a recent MassMutual survey of young people found that paying on time had the biggest impact on your credit score. Only 52% knew they could have an impact.”
ask for cash for a child’s birthday to put in a college fund
Patricia Roberts, author of “Route 529: A Parent’s Guide to Saving for College and Career,” asks family and friends to donate to their child’s college savings account instead of giving other gifts Thing is an economic practice worth adopting and repeating. Training with 529 Plans” and COO of Gift of College Inc.
“Gift givers win by giving gifts that can grow with their children. Parents of children are encouraged to save for important goals that seem insurmountable given the high cost of higher education. We will win by supporting even a little.”
Pay off your credit card balance in full
Who wouldn’t want a smaller credit card transaction than a larger credit card transaction? said Ian Sells, Founder and CEO of RebateKey. “Instead, make it a habit to pay it off in full each month.”
Validate, validate, validate
To protect yourself from fraud, Nationallegal.com Markets and Outreach Coordinator Josh Richner recommends: “Check and verify who they are every time you get a call about something financially related, even for a seemingly simple purchase. Treat unsolicited conversations with a healthy degree of skepticism. ”
turn on auto savings
Sunnybranch Wealth founder and advisor Catherine Fox of CFP says the easiest and most repeatable habit to start on your path to financial success is to turn on automatic savings. “It’s essential to get into the habit of putting as much of your paycheck into savings each month as possible. Once you have enough cash reserves, put these savings into a retirement or taxable account to take advantage of the great benefits of compounding interest. I can make it possible.”
Massena continues: Putting some of your new extra income into your savings account right away can help you save more and prevent lifestyle creep from robbing you of future financial success. ”
Talk openly and honestly about your finances
Money can be very personal, so it’s hard to talk about. According to Emily Koochel, Ph.D., Senior Financial Planning Education Consultant at eMoney Advisor, our financial behavior depends on our values and It can be an expression of belief.
“When we talk about money, we often don’t talk about money at all. With these emotional underpinnings, it may seem easier to avoid conversations together. However, whether you are a financial advisor or a significant other, financial transparency is critical to successful financial planning.”
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This article originally appeared on GOBankingRates.com: ‘Groundhog Day’ inspiration: 9 financial habits to repeat over and over again
