Daily and Monthly Habits for Lifelong Financial Freedom

Our Financial Planning process is designed to help you and your family achieve important long-term goals like buying a house, sending your kids to college, and enjoying a secure and fulfilling retirement. But the journey to those major milestones begins with the smaller steps that we take every single day. These five daily and monthly actions can grow into money habits that will have a big impact on your financial future.

1. Automatically pay your future self.

Adding monthly saving and investment goals to your household budget is a good way to make sure you're dedicating a part of every salary to your future. But many people tend to dip into these future funds for short-term expenses because they know that money is available. After all, you don't need to retire tomorrow, so why not have a few extra takeaway meals this month or buy that new TV you don't really need?

To set those saving and investing budget items in stone, pay your future self first by automatically deducting contributions every month. By committing to those investments in your future, you'll also be committing to the rest of your budget.

2. Pay off your credit cards in full.

In some financial planning discussions, credit cards get treated unfairly. But there's nothing wrong with using credit cards – or even multiple credit cards – as long as you are using them responsibly. And the most responsible way to use credit cards is to pay them off completely, either right after a big purchase or at the end of every month. Other debt items on your monthly budget, like loans, car payments, or your mortgage, typically have much lower interest rates. Paying off high-interest credit cards in full and on time will help keep your spending under control.

If you do find yourself struggling to stay on top of your credit card bills, it might be a good idea to switch more of your spending to cash. Using a debit card or a something like a Revolut account that’s tied to your bank account can help you be more mindful about what you’re about to buy and how you’re going to pay for it.

3. Maintain your most valuable assets.

Try as you might, you can't wish away the flashing ‘check engine light’ on your dashboard. Eventually that spot on your roof that only leaks when it's raining hard is going to run like a tap any time there's a sprinkle. Take care of small problems when they're still small and you'll avoid paying bigger bills later. Like the check engine light and the leak, we need to take action fast to prevent disaster.

That goes double for your single most valuable assets: your health and your family’s health. The best and most affordable medicine is preventative. Taking small steps today such as setting up that weekly budget, educating myself on my pension, or finding out how much life assurance I need helps us to avoid big problems tomorrow. This is the key protecting your most valuable assets.

4. Eliminate your spending triggers.

We often don't think to consult our household budgets when there's a sale at our favourite store, or when a daily deal bouncing around our social media feed looks too good to pass up. If you find yourself susceptible to splurge purchases, think about ways you can reduce spending opportunities. Set a rule with yourself that you will wait a number of days before making a purchase.

Turn off ad notifications from shopping apps. Unsubscribe from magazines or email newsletters that just make you want buy more stuff. Keep your wallet or purse in your bedroom. The long walk up that flight of stairs might be enough to deter you from a purchase you're going to regret when your next credit card statement shows up.

5. Give your finances a professional checkup.

Is a big promotion about to change your financial goals?

Does your elderly mother need to adjust her living situation?

Is there an opportunity to refinance your mortgage while rates are low?

Have there been any major changes to tax laws you should be aware of before filing?

Whenever your life and your money are about to turn a corner, talk to a professional who can help you sort through your options. If you need to discuss long-term goals, short-term concerns, or anything in between, don’t hesitate to get in touch.

If there is anything in this article that you would like to get more information on, email our Certified Financial Planner Fergus Murphy at fergus@castlecapital.ie.

Fergus Murphy

Castle Capital Financial Planning