During 2021, we want everyone to focus on a few ways to enhance their life and habits. Financially, you are always able to make a change for the better and increase your savings. Fairfax State Savings Bank offers helpful tips to break these five bad financial habits this year. 

 

1. Impulse Buying 

When you see an item you think you need to have and buy it instantly, that hurts your bank account. That item may be on sale somewhere else and that deal they are giving probably won’t expire that day and will be extended. Take time to think before you buy. It’s also important to watch your feelings and mood when you want to buy something. Yes, retail therapy can help boost your mood, but you don’t want to continually buy things when you’re sad or need a pick-me-up. 

 

2. Paying the Minimum 

While it’s good to at least pay the minimum so you don’t get charged with late fees, it doesn’t mean you should always just pay the lowest amount possible. If you can, begin to pay off your debt faster by making more than the minimum payment. This can help you find financial freedom faster! 

 

3. Pushing Retirement Savings 

Even though retirement is far away, saving takes time. If you are going to live well past your retirement age, you must think about all the bills you’ll need to pay (housing, groceries, utilities, phone, medical and so on). You don’t want to save up for retirement a few years before it’s time because that’s a large sum of money to accrue in a short amount of time. The earlier you save, the longer you have to save and the longer your accounts have to accrue interest. 

 

4. Spending More Than You Earn 

Even though you have credit cards, it doesn’t mean you can afford to spend the whole limit. Truly think about what you make each month and find a budget to stick to. This will help you to not overspend and fall behind in your savings and payment goals. 

 

5. Not Saving 

While you may have money in a savings or checking account, that doesn’t mean you are actively saving. You need to create a budget and set aside money each month to actively put in your savings account for certain purposes like an emergency fund for you or college fund for a child. 

 

We hope you break these bad financial habits this year. It’ll help put you onto the road to financial success! Save your extra money you’ll gain in a savings account with us.