Bellmore Group Management Services, Tokyo Japan 10 Habits to Develop for Financial Stability | Page 2

If you’ve got credit cards, personal loans, or other such debt, you need to start a debt elimination plan. List out your debts and arrange
them in order from smallest balance at the top two largest at the bottom. Then focus on the debt at the top, putting as much as you can
into it, even if it’s just $40-50 extra (more would be better). When that amount is paid off, celebrate! Then take the total amount you
were paying (say $70 minimum payment plus the $50 extra for a total of $120) and add that to the minimum payment of the next
largest debt. Continue this process, with your extra amount snowballing as you go along, until you pay off all your debts. This could take
several years, but it’s a very rewarding process, and very necessary.
7. Use the envelope system
This is a simple system to keep track of how much money you have for spending. Let’s say you set aside three amounts in your budget
each payday — one for gas, one for groceries, one for eating out. Withdraw those amounts on payday, and put them in three separate
envelopes. That way, you can easily track how much you have left for each of these expenses, and when you run out of money, you know
it immediately. You don’t overspend in these categories. If you regularly run out too fast, you may need to rethink your budget.
8. Pay bills immediately, or automagical
One good habit is to pay bills as soon as they come in. Also, as much as possible, try to get your bills to be paid through automatic
deduction. For those that can’t, use your banks online check system to make regular automatic payments. This way, all of your regular
expenses in your budget are taken care of.
9. Read about personal finances
The more you educate yourself, the better your finances will be.
10. Look to grow your net worth
Do whatever you can to improve your net worth, either by reducing your debt, increasing your savings, or increasing your income, or all
of the above. Look for new ways to make money, or to get paid more for what you do. Over the course of months, if you calculate your
net worth each month, you’ll see it grow. And that feels great.