Knowing your financial state on any given day can help you stay calm when large financial expenses appear out of nowhere. And unexpected costs do have a way of cropping up at the most inconvenient times.
Even if you have several forms of insurance, getting a payout can be challenging at best and turned down by insurance companies at worst.
According to West Coast Trial Lawyers, “Despite their advertisements, insurance companies are in the business of making money, not helping people. When tragedy strikes, and you need them the most, most insurance companies will avoid paying your claim even though they know it’s valid. When a claim is too expensive, your insurance company may delay, undervalue, or even deny your claim outright, hoping that you’ll just give up.”
Want to be financially prepared for anything? Enter the power of a daily money routine.
Routines: The not-so-secret secret to a better day
Routines have long been the secret power of top performers. Tony Robbins has a 3-part morning routine that he does daily without fail. Oprah Winfrey starts her day with 20 minutes of meditation, followed by exercise, music, and a hearty meal. Steve Jobs admitted he had one question he asked himself at the start of each day.
At the heart of a good routine is the truth that we are bad at doing what we say we’re going to do. Routines put our good intentions and worthy habits into our daily schedules.
Stick with a routine, and it will become an effortless part of what you do every day.
What to include in a daily money routine
Having a daily money routine does not need to take an hour-long to complete. It can be tailored to the main areas of your spending and your earning. Some days you might decide to devote more time or less, depending on the tasks you need to complete. But here are the essentials to cover.
Check your inbox or the mail for any bills that have come in and pay them immediately. Do you only remember to pay your bills after the second late-payment notice? Or what about setting aside that percentage of your monthly income for your savings?
Yes, payments can be automated. But there are some that you might have decided you wanted or needed to do manually. Even for automatic payments, make sure the payment has gone through. And that there is enough balance in your checking account for the withdrawal.
Check your savings accounts. Thought that you were doing well at putting money aside? You might be under a misconception. A GoBankingRates survey found that over half of Americans have less than $1,000 in their savings account. What about you? Do you know exactly how much you have in savings? Sometimes a daily reminder is all it takes to help curb impulse spending and keep you pushing toward your financial goals.
Make sure you are within your budget allowance for daily expenses. Before you step outside of the house and are tempted by takeout coffee and quick bites to eat on the way to and from work… Evaluate how much money you can safely spend in order to stay within what you’ve budgeted for daily expenses for the month.
Log expenses. After you come home from work, log your expenses for the day. So you know how much you can safely spend the rest of the week and month without jeopardizing your budget.
Read 1 finance article a day. Reading about financial topics will grow your knowledge on financial matters. Which will lead to better decisions.
Set your financial intention for the day. Do one thing for your financial state today that will pay off in stability in your future. It could mean deciding to exercise instead of watching TV (or watch TV while exercising). The healthier you are, the fewer doctor bills you will need to pay. Or it could mean researching and reading a prospectus for a fund you are considering investing in. Or it could be having a no-spend day, where you pack a lunch from home instead of eating out. Choose one intention, and follow through.
Ultimately, your daily finance routine can help you stay on the right path in your journey toward independence. It will help you grow your knowledge on topics that might have seemed too difficult for you to grasp. Andit can lead to what you want most: Financial stability for life.