Today is the first day of Spring, and at the start of a new year and when each season changes, we tend to make bold promises and vow to alter our habits, only to look back later and see that we have faltered. An article from Women’s Day featuring Claire Emory of Clarity Financial Planning, LLC includes financial planning advice and outlines “10 Bad Money Habits and How to Break Them.”
While speaking of the importance of increasing your 401K contributions, Emory says, “It’s better to take small steps you can handle than to feel overwhelmed.” This idea applies not only when people who are hesitant to increase what they put in their 401K, but to adopting new financial habits overall. Here are some habits to work on, step by step:
Starving Your 401K: The ideal percentage for people in various financial situations to put into a 401K is at least 10 percent, according to Emory. Everyone is not willing to take that step right away, however, so she says you should at least be contributing enough to get an employer match.
Carrying Balances on Too Many Credit Cards: Emory says that it is more difficult to stay on top of where your money is going when you have a number of credit cards. At first, you may not realize just how much you are spending. Later when the bills pile up, you may develop the dangerous habit of using one credit card to pay off another.
It is better to use no more than two credit cards that have no annual fee and perks that you find useful.
Ignoring Your Financial Health: You may often hear that married women rely too heavily on their husbands and know too little about family finances, but there are many people of both genders who aren’t really in control of their money. If you don’t know where your money goes and you aren’t sure about your financial future, take the first step towards financial freedom by making an appointment to consult with a Fee-Only financial planner.