With Valentineโs Day approaching, Cupid is taking aim. Instead of uniting one-true-loves, his arrow is aimed at making you fall in love with new financial habits to ensure your financial happily-ever-after.
As you know, a habit is not something you change overnight. It is a long game where you continue to practice new behaviors until they become second nature. However, itโs often difficult to stick with a habit that doesnโt offer some near-term return on investment. Weโre offering you several impactful habits to provide both short-term benefits and long-term financial security.
1. Set Up Automatic Savings to Build Wealth
Take the fuss out of moving funds into savings. Let it become โautomagical.โ
- Actionable Tip: Set up an automatic transfer to a high-yield savings account or a CD.
- Short-term benefit: Instantly reduces stress by ensuring money is set aside without effort.
- Long-term benefit: Helps grow savings for emergencies, retirement, or big purchases.
2. Use Cash-Back & Rewards Wisely
Think of cash-back as another kind of small savings account.
- Actionable Tip: Choose a rewards credit card that aligns with your spending habits but always pay off the balance to avoid interest.
- Short-term benefit: Immediate discounts, cashback, or perks from everyday spending.
- Long-term benefit: Maximizes money that would be spent anyway, helping offset costs or build savings.
3. Round Up Purchases to Save Without Noticing
Over time, the small amounts add up into big savings. Apps like Chime and Acorns can help automate this habit.
- Actionable Tip: Use a round-up savings app or banking feature to deposit spare change into a savings or investment account.
- Short-term benefit: Adds up small savings painlessly.
- Long-term benefit: Creates a steady stream of savings with no extra effort.
4. Make One Extra Payment on Debt
One extra payment toward principal can save a lot on interest in the long run.
- Actionable Tip: Even one extra payment a year on a mortgage or loan can make a noticeable difference over time.
- Short-term benefit: Feels good to see the balance shrink faster and reduce interest paid.
- Long-term benefit: Shortens the repayment period and saves money in interest.
5. Set Up Bill Alerts to Avoid Late Fees
We get it. Weโre all busy. Alerts can ensure youโre paying on time so that your money doesnโt go to waste.
- Actionable Tip: Use mobile banking alerts or calendar reminders to track due dates.
- Short-term benefit: Prevents surprise charges and improves peace of mind.
- Long-term benefit: Builds a strong credit score, which leads to better loan rates and financial opportunities.
6. Meal Prep for Your Wallet and Health
Meal planning and prep is a great way to get ready for your week, keeping your diet and your finances on track.
- Actionable Tip: Start with prepping just three meals per week to ease into the habit.
- Short-term benefit: Immediate savings on takeout and groceries, plus healthier eating.
- Long-term benefit: Reduces food waste and keeps grocery spending in check.
7. Check Your Bank Account Regularly
Balancing a checkbook is becoming a thing of the past. But with your account information at your fingertips, be sure to check your checking and savings account balances regularly.
- Actionable Tip: Set a reminder to review transactions weekly to stay on top of finances.
- Short-term benefit: Helps avoid overdrafts and detect fraudulent transactions early.
- Long-term benefit: Builds financial awareness, allowing for better budgeting and planning.
Build a Financial Future Worth Falling For
It doesnโt have to be โall up in the stars.โ You can govern how to matchmake with habits on your terms and for your goals. Remember that, like any good relationship, good financial habits should be rewarding and easy to maintain. Automated habits are even easier to maintain because it mostly removes your time and effort.
Small, smart choices today can lay the groundwork for lifelong habits, and can give you immediate perks while ultimately providing a strong financial future.
Ready to start? Penn Community Bank offers the tools to help you save, spend, and plan wisely. Contact us today to learn more about our savings accounts, CDs, and financial services, or visit a financial center near you.
