Law School
Personal Finance

3 Personal Finance Habits I’m Trying To Develop

I’ve been slacking when it comes to my personal finances. I’m not out spending money frivolously, but I feel I’ve stagnated when it comes to being on top of my finances. Here’s a few habits that I’m working on that should help me kick my financial life into the next gear.

  1. Review my accounts weekly.I can’t remember the last time I checked my accounts. I don’t even know what my balance is right now. Doing a weekly money review should take less than 30 minutes and the payoff from evaluating my spending is well worth the time investment. I’ll probably start doing this on Sunday when I do my weekly review for my planning.
  2. Keeping track of spending.I’ve done this off and on a couple of times, and the times I’ve done it I really felt it helped me control my spending. Keeping track of your spending will help you see where the “leaks” are in your financial life.
  3. Use the envelope system. My wife and were doing this during the summer and then we fell off the wagon. The envelope system is a simple budgeting system that uses envelopes. Figure out what you usually spend your money on. In our case it’s groceries and eating out. Label two envelopes “groceries” and “eating out.” We then withdraw cash and divide it among the two envelopes. When we run out of money, that’s it. No more spending. I’ll have to see if this is something my wife wants to do again. It is kind of a pain in the butt to go get the cash.

What personal finance habits are you trying to develop? Drop a line in the comment box.

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