Let’s talk money habits
The fundamental behaviours of financial wellbeing are active saving and mindful spending
When it comes to talking about money, let's face it – most of us would rather discuss anything else. It's completely understandable, managing finances can be stressful, time-consuming, and complicated. It’s easy to just gloss over it as family, work, and life take priority.
But here's the thing - we all have the power to be the boss of our money instead of letting it control us. And don't worry, we're not going to suggest you create complex spreadsheets or cut out every bit of non-essential spending. Instead, we will help you to tap into what is important about money and provide some practical ideas you could try.
I find it easiest to think about money in the context of financial wellbeing, being financially healthy. Like maintaining physical health which comes down to two basic behaviours – healthy eating and regular exercise. The same applies to financial wellbeing, the fundamental behaviours are active saving and mindful spending, so what do they look like?
Saving. Like exercise, is something we all know is good for us, but often hard to do. For many, the focus is on making ends meet and enjoying life, leaving little or nothing left over to save. But why should your future self only get the leftovers?
Active saving flips the script, putting savings first and spending what's left over. It’s a mindset shift that can help you build financial resilience (having money set aside for a rainy day), work towards larger goals like buying a house or starting a family and unlocks options like changing jobs or moving overseas.
It’s important to clarify that not all saving is created equal. Whilst saving for a holiday or a car is good; those are ultimately spending goals. Ensure you are actively saving for future you.
When we think of a 'great spender' we might imagine someone who always has the latest trends or knows their credit card number by heart for quick online shopping. But a truly great spender is someone who applies thought and intention to their spending. We've all been guilty of an impulse splurge or buying things that we never end up using; especially now that we're constantly seeing the latest 'must-have' item across social media.
Improving our money habits and behaviours
We all come from different backgrounds and face unique life circumstances, so when it comes to money, comparing ourselves to others isn't helpful. Also, when we reflect on our journey with money, we can beat ourselves up for poor decisions made in the past. Try to set those things aside and focus on what you can control - improving your money habits and behaviours moving forward.
Change can be tricky on top of all the other 'must-dos' in your life. That's why we advocate for putting your money on Autopilot. Learn how to set up a money system that takes the work out of managing your 'savings', 'needs', and 'wants', putting you back in control of your financial habits.
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Find more Bank First content on Financial Wellbeing to help you make the money stuff easy.