6 Essential Tips To Improve Your Personal Financial Planning

personal financial planning

Personal financial planning should be at the top of everyone's list.  According to a report by Marketwatch, approximately 49% of Americans are “concerned about their current financial well-being”.  Having a strong handle on your personal finances is an essential part of financial wellness.  If you are currently suffering from negative personal finance habits, you may benefit from a hard reset to get you back on track.

In this article we share some of the ways that you can reset your personal financial planning habits.  These can be anything from repairing your credit, saving money for retirement or even a big purchase.

Freeze Your Credit Cards

Have you ever considered freezing your credit cards? This might be a key step in your personal financial planning process.  If you’ve been noticing that you swipe your credit cards too often, you may benefit from a freeze. Call your credit card company, put a hold on the card, and use your debit card or cash in the meantime. When you see the money coming directly out of your checking account, you’ll be more mindful of your spending.  Doing this will help you stay in line with your budget and you will will also avoid accruing debt. 

Wait Before You Buy

personal financial planning

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One of the best ways to help yourself with your personal financial planning is to take stock in your shopping habits.  Whether you’re buying something online or in a brick-and-mortar store, you may want to take some time before you commit. Today, it’s easy to buy something quickly - and then get it in your home just as quickly. Instead, give yourself a deadline: 24 hours, a week, a month. If you still want to buy the item during that time, then you can see if you can fit it into your budget. However, sometimes you may realize that you don’t need that item after all, and that you’re better off saving the money.

Knowing what your spending weaknesses are is key to your personal financial planning

Hitting up the mall is usually a huge weakness for a lot of people.  They head there with the intention of only buying one item and they wind up with new shoes and some new lip gloss.  If this sounds like you, avoid the mall altogether. Whatever your weakness is figure it out and avoid it.  This is key if your personal financial planning is going to work for you.

Enjoy Your Home

For an entire month, commit to enjoying all your home has to offer.  This means eating only homemade meals and being creative with your entertainment.  After a month, you’ll appreciate your splurges and won’t crave them as often. You will begin to realize that spending time at home with loved ones can be fun too, even when you’re not spending money.

Personal financial planning means carrying only the cash you need  

The next time you go grocery shopping, only bring the cash you budgeted for.  So, if you have $150 budgeted for groceries, only take that much cash. The key part here..leave any debit or credit cards at home.  This will force you to pay attention to how much you are buying and to stick to your budgeted amount. You don't want to be at the cashier having to put stuff back because you don't have enough money.  Not to mention, you won't be tempted to put the difference on a credit card. Hence why it is important to leave those cards home.

Create a vision board

personal financial planning

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As you start the process of resetting your personal financial habits, you should have some goals in mind that you want to meet.  Once you have some in mind, create a vision board and put it in a place where you will see it continuously through out your day.

If your goal is to head out on a family vacation, print out a picture of a place you want to go to.  This will help remind you of why you are eating those meals at home and staying away from the mall.

Personal financial planning is a process

Resetting your financial habits is especially helpful after a vacation, when you feel more excited to spend money and get used to being outside of your comfort zone. The transition back to a budget and routine life can be difficult, but a reset can ensure that you don’t spend beyond your means. Try the personal financial tips above and get yourself on the fast track to achieving your financial goals.

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