4 Important Financial Habits

You may have heard that it takes 21 days to start a new habit.  Why 21? Is that how long it takes our brains to convince us that it's okay to keep doing that new behavior?  How do you feel about your financial habits? Are they helping you reach your goals? preventing you?  Habits can work for or against us.  Below are some important habits you need to keep your finances in solid shape.

1) Make a written budget before you spend your first dollar.  You must have a destination for every dollar you spend.  If it's not accounted for it gets wasted.  You can use a spreadsheet, notebook paper, or an online system such as www.mint.com.

2) Assess your net worth every quarter.  You need to know what you own and what you owe.  You need to assess what investments are increasing in value or decreasing in value.  For more details on this practice click here.

3) Balance your checkbook every month.  This practice lets you know where your money is going.  It can also provide you clues where some money problems may be lurking.  Balancing my checkbook revealed to me that I was not recording debit card purchases.  This practice is a must if you want to get a grip on your money's travels. For more tips on how to balance your checkbook click on Dave Ramsey's tips.

4) Save something every paycheck.  This practice is a must.  So few people set aside X dollars a month.  You need savings for emergencies.  Cars break down,  Tires need replacing.  Medical emergencies happen.  You need money to cover the unexpecteds of life.  We all have them. I suggest a minimum of $1000 for your emergency fund.

Do you practice the habits I've listed above?  Do you have a financial habit to add to my list? Please add by commenting.