If you've been involved in online chat rooms, you may have heard of Chat GPT. But what is it, and how can you make money from it? Read on to find out.
Check out our list of seven financial habits to improve your financial savvy.
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1. Automate whatever you can
Automate your savings, your loan repayments, and your bill payments.
The fewer steps you must take to get your money where it needs to go, the more likely you are to keep to your plan.
What's so amazing about automatic savings and payments? Once it's set up, there should be no additional actions for you to take each month. Set it and forget it.
2. Have specific, meaningful goals
Sticking to your savings budget can be difficult, especially when you have to give up something else to do so.
When you recall that the money is going towards something you desire, you'll probably feel less of a sting when you have to miss that extra drink.
It's great to have a goal, whether it's for a vacation, a house, retirement, or even a less responsible-sounding purchase like a flashy new tattoo.
Putting all of your extra cash into a savings account isn't always as smart as it may appear. Sure, there's no risk, but your purchasing power diminishes over time.
Consider investing if you wish to be more proactive. It's not as frightening as it sounds, and you don't need to be a Warren Buffett-like wiz to accomplish it. Consult a financial advisor or check at some of the apps that make investing more accessible (such as Spaceship Voyager).
4. Don’t spend that unexpected cash
Refund of taxes? Inheritance? Money for a birthday?
Although it may be tempting to pamper yourself, you may be better off putting that additional cash into a savings or investing account, or paying down debt.
After all, you won't miss the money if you weren't expecting to get it. And you'll be able to achieve your financial objectives!
5. Prioritise high-interest debt
It can be extremely frustrating to try to spread out your money to cover all of your debt obligations if you have many debts.
Does this ring a bell? If that's the case, you might want to look at the avalanche debt-reduction strategy.
To begin, locate the debt with the highest interest rate. You pay the bare minimum on all of your other debts. Then you devote everything else to paying off that high-interest loan.
After that, repeat the process for the debt with the next highest interest rate.
You'll wind up paying less interest in the long run, and you'll feel fantastic when you pay something off fully.
6. Track your spending
It doesn't matter how you do it; use a spreadsheet, a notebook, or one of the myriad personal budgeting apps on the market.
Seeing where all of your money goes can serve as a wake-up call to adjust your habits and get back on track.
And, well, if you're content with spending $87.50 per week on food delivery services, that's fine! At the very least, you're making an informed choice.
Finance, investment, and financial planning in general? They can be a little frightening.
Rather than waiting until you need to know something specific — oh God, how do I set up this investment property so I don't lose everything to taxes? — start consuming information earlier. Find a few books, blogs, podcasts, or videos that you enjoy and allow your brain to absorb the information.
You'll gain a general understanding of how things work overtime, which will make research and decision-making easier when the time comes.