How To Develop Good Financial Habits

In today’s world, almost everyone is struggling with their finances, including too much debt, a lack of savings, poor investment skills, and poor spending habits. These finance management killing factors are learned throughout our lives and are tough to be broken once they become part of us.

What are the personal financial management skills you need?- To lay a good foundation in order to reach your financial goals, it is necessary that you build and establish the right financial habits early enough in life.

This article will present you with the guide to a better financial life for yourself and your family.

Building Reliable Financial Habits

Begin Early- Most peoples’ eyes are opened to their financial awareness when they turn thirty or so. Start setting financial goals for yourself as early as possible in your life. If you are currently in high school, your financial goals may include attending college, moving out on your own, and purchasing a new car. You will only need a little hard work and some sound habits to attain these goals. However, if you are advanced in age, your goals may be different. You may choose to work towards a second honeymoon or a good retirement. Your financial planning can start today despite your age.

Form The Habit Of Saving- It doesn’t necessarily matter what your budget is, you should stop spending way too much money than you are bringing into your household. You should start saving a certain amount of money from your pay check each month. This money can be used to sort out some unexpected expenses like hospital bills and car repairs. This is so when this emergencies come knocking, you will have the money to settle them without going into another debt.

Take A Through Look at Your Bills One Received- While you may not have the money to pay your bills as soon as they arrive in the mail, looking them over as soon as you receive them is a good habit to develop. This is so you can easily identify error and correct them before the bill is due.

Pay Off Credit Card Debt Quickly- It is not good to pay only the minimum payment each month on your credit card as this will increase the interest and the amount of time you spend paying them. Make your payments promptly and also try to make more than just the minimum payment to avoid added interest and late fees.

Use A Budgeting System- An online budgeting management software will allow you to create a list of monthly expenses, set financial goals for yourself, and keep track of every bit of cash you are spending. By using software system that has a personal finance online calculator, you can create a budget you can stick to and have a good insight on how your budget the next few months would look like.

Your personal financial management is important for the present and for the future, so it is essential you begin establishing good financial habits now. You can use these tips to create a better financial life for yourself and develop worthwhile habits that will lead to a balanced financial lifestyle.

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Harold Williams

Old habits die hard, which means the earlier a person develops good financial habits, the better. Along with developing good habits however, perhaps young people should not be so quick to move out on their own. If they have a good relationship with their parents and are allowed to continue living with them, it would be wise to save and invest their money while they begin their career, as opposed to moving out and immediately having to deal with the expenses of living on their own. It would be beneficial to have a good financial foundation before moving out. Otherwise, they may later find themselves in an unfortunate financial situation and have to return home, putting them back to stage one.

James Wilson

In this day and age with the economic situation in many countries dropping drastically, the financial struggle is real. Especially for someone like me who had no parents to educate me on proper financial management. This article is so informative. I didn’t realize the importance of saving at a young age until now. Hope it’s not too late. Thanks DebtGuru!

Gen Acio

As a young professional, I truly agree on the importance of having a budget and of course, sticking to it. I still employ a manual system for tracking my expenses (through an expenses notebook) though, as a millenial, I am also open to the use of a budget tracker software which I can access anytime & anywhere.


I love these tips. I think the big problem people have is waiting too late in life to start developing good habits. They get into a lot of debt when they are really young or they don’t save any of their money and then find themselves in trouble later on. It’s very good advice.

Generally what I do is pay all my bills at the beginning of the week when I’ve been paid. Then half of the money left over is my spending for the week and the other half goes into a savings account.


I couldn’t agree more with this article! This should be printed and handed out to all students in High School and College. All of these suggestions discussed in this article were instilled in me at a very young age. My Dad always told me to set aside a set amount every month for emergencies only! This is very important.


Advice here is simple but very true. I had problems with excessive spending when I was younger, especially since I neglected writing down and identifying exactly where and when my money was spent.

Free budget management apps (like Cash Droid) really helped me see where I was blowing my cash, and where I needed to cut back on spending the most.


Before computers, as I struggled with $423 a month total…I added up every bill I had, split in two, took that figure and prepaid (at least in my ledger) those bills..what I had left was what I worked with until the next check. Anything I had left over was put into savings. I guess it’s a matter if discippline.

John Cedric Martin

The advises are helpful especially the “form the habit of saving” part. This is essential so that we will pity ourselves soon when time comes. I think that we should think first on things we are going to buy. Think first if we just need it or we just want it. Building financial habits now, not later, will be a good idea and lesson for our future generations.

Mohan K

While the advice given on paying off credit card debt fast is good – in reality life doesn’t always present a case to follow these guidelines.
Many people are struggling to manage their basic monthly expenses and often rely on some form of credit – which they then attempt to pay off. Quite often unexpected difficulties results in looking for multiple credit lines or reduction in repayment – leading to a vicious cycle of increasing debt.

Anna Smith

I am a young adult now and it’s good that I’ve come to know about these tips regarding financial habits since I have also experienced some struggles. From now on, I’ll try to keep these things in mind. And I agree that this is important for the present and for the future as well so I wouldn’t regret anything later.

Fatima C.

I agree with just about everything you have stated. I make it a point of paying my credit card bill within 4 days of having received it so as not to have all the expenses snowball and hit hard in the end. I like the idea of starting the kids early. It is important that they learn the value of money and the hard work it requires to earn it. It will make them think twice about buying something new and shiny that will probably lose its appeal in the next week or so.


Take it from me, I had no idea before how to handle my finances. These steps though really put you on the right track! Especially starting early, man I wish i started earlier than i did.

Nice article!


I think your point about taking a through look at your Bills once received is very good and often missed by people. I usually tend to put the bills aside after I collect them from the mailbox, which can lead to overlooking the bills or even missing the payment due date. I really need to work on checking my bills once received, rather than sitting on them. Thanks for your sharing!


Very informative article. I agree with that the bills and debts must be paid on time (saves a lot of headache later). I really have to work on the budget system, looks very practical. The hard part will be to make the whole family to cooperate tho!


Peter Finch

Given the dire financial situations of many people I’ve come across: this article is both illuminating and necessary. The section “Begin Early” is especially important since many educational systems pay very little attention to the structuring and application of financial goals. As a result, many young men and women coming out of high school or college become complacent in their ability to plan for the future and before they know it: they’re in debt. Articles like this that stress the importance of financial prudency are always an educational and delightful read.


I always found it good to “pay myself first” in order to save money. As soon as I get paid a transfer the money into my savings account, this way the money isn’t available to be blown on something useless.

It”s really important to save these days. You never know when you could be laid off and spend months looking for new work.

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