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Do you always think before you swipe your bank card? When last did you go through your bank statements or credit report? Reflecting on your habits can help you gain a better understanding of your financial status.
Financial reflection involves deep-diving into your finances to learn how you can manage your money more effectively. Here are three ways to get started.
1. Assess your financial behaviour
Look at your bank statements for the last three months to get a clearer understanding of your financial habits. For example, you’ll be able to identify late payments, bounced debit orders and overspending. They could also show positive patterns such as paying more than the minimum amount owed on a credit card or reducing your monthly entertainment expenses.
2. Identify your triggers
Your financial past impacts your financial decisions and understanding your ‘why’ makes it easier to make better choices. Perhaps you splurge when you’ve had a bad day, or you struggled financially before, so now you are hesitant to use credit when it would actually be helpful. Pay attention to your spending patterns so you can tackle the root cause of the issues.
3. Find better ways to manage your money
If you are unsure of where to start, go back to the basics. For example, draw up a budget, eliminate unnecessary expenses and reduce your debt. Your financial coach is available to guide you, from choosing better financial actions to cultivating better habits.
For more financial advice, read these helpful articles:
The information is shared on condition that readers will make their own determination, including seeking advice from a finance professional. E&OE.