Four habits your finances will love

We see headlines about how to save, how to be a millionaire by the time you retire, how to this, how to that, when something as simple as living on less than you earn can be the key. If you live on less, you will always have sufficient income. That income can be used for savings, investing, paying off debt, travel, hobbies… anything you want. Living on less also keeps “lifestyle creep” in check. You get that raise or that new job and all of a sudden you have a bigger car payment and are eating out five times a week instead of two. That’s just fine, but the rule still applies – live on less than you earn.

If you’ve been paying minimum payments on your loans and credit cards, make an additional effort to pay extra to principal – even if it’s a small amount. By paying down your principal owed, you’ll pay off your balance quicker and save yourself interest in the process. For an extra bonus, once you pay off a debt, start doubling up payments on another to get it paid off even faster.

Whether you intend to retire early or not, being prepared for an early retirement can be liberating. The earlier you start investing in your retirement, the better. You’ll be especially thankful you prepared if early retirement becomes a necessity due to health or other unforeseen circumstances. Talk to your financial advisor to make sure you’re on the right track.

Some of the most popular questions we get asked are about credit scores – what they mean and how to improve them. With so many things depending on your credit score, there’s no better time to work on improving yours. Now’s the time to ensure you make your payments on time, pay down your credit card balances and keep them low.