3 Habits to improve your financial state

"Last week, I noticed that whenever I went to buy groceries while hungry or thirsty, I ended up buying way too much than I needed. And then I would go back to my hostel and two days later, most of the food I bought would end up rotten – we all know how wasteful this is. This happened to me many times until when I learned of habits that could improve my financial behaviour. So I started to eat a full meal and drink two glasses of water before shopping for groceries; that way, I'd buy less stuff I wouldn't get a chance to eat anyway. This has been quite effective, and I can reveal how much I can save and how conscious I am able on acquiring what I need."

Rose Mhindi, 29 Dar es salaam 

It's proven advice that "Do not go shopping for groceries while you're hungry". Researchers have demonstrated that doing your shopping while you are hungry makes you buy more things than you need. That is one of the habits that may rescue the financial turmoil you are going through.  

“Poor spending habits lead to poverty” ― Mac Duke The Strategist

We have compiled a few habits that we know for a fact can assist you to save more;  

1. 'Do not walk with cash' 

Shun away from impulsive spending - a spontaneous decision to buy a product or service without planning ahead. Research findings suggest that emotions, feelings and attitudes play a decisive role in purchasing power. You ever notice how many times you have purchased something just because you saw it? That’s because you were triggered by seeing the product.

“Spend extravagantly on the things you love, and cut costs mercilessly on the things you don’t.” ― Ramit Sethi

A better habit that you can introduce to respond to your impulsive purchase is 'Do not walk with cash'. NMB Bank provides you with safer ways to store your money and be able to transact, send or pay anyone at your fingertips by using your NMB Mkononi (https://nmbbank.co.tz/personal-banking/ways-to-bank/nmb-mkononi).

With your money stored in a bank, you can now delay the impulsive spending habit.

2. "Auto-transfer money into savings."

Take some time to evaluate what status of financial health you are in. Do you have financial goals? Do you have short and long term accomplishments identified? Reflect on what you are going through, visit where you want to be, is the path taking you to your desired destination? 

If not, then savings is what you need. Have a clear indication of your true financial desires and take a weekend to write down what you really want. Then create a system that helps you achieve the same. NMB Bank serves you with a Saving account Bonus Account (https://nmbbank.co.tz/personal-banking/save/nmb-bonus-account), which is designed to restrain you from getting your money anytime you need. 

Now I know you are aware of a saving account, but do you know of a Standing Order? With this solution, you are able to instruct an automatic money transfer into your saving account. How it works is that you set your automatic transfer on a specific day then the account will be topped up automatically. You do not need to initiate your savings each time you intend to save. Visit one of our branches and request for a Standing Instruction (SI)

Tip: Make sure to schedule your transfers when you know you have enough money in the originating account, such as after each payday.

3. Track your financial progress

You already have money flowing through you now. It does not matter how little that money is; you receive it, you use it, then you find more money again. 

Do you know where the money you had last month went? Are you aware of where your money is going? If not, why? Money is one of the most essential parts of your life. You wake up every day thinking of how and where to get it. Why are you also not cautious of where you actually spend it? 

Money is something we choose to trade our life energy for.” ― Vicki Robin

Starting to track your expenses is the best way to get control of your money. Maybe your money is spent more on shopping and clothes while that's not among your values. Now, know where your money is going and try to give every amount spent a purpose. Tracking how much money is coming in versus how much is going out — and where exactly is it  going - is the key in making smart financial decisions that have a big impact on your life for now and in the future.

TAKE ACTION

Small changes can make a big difference in your financial health. Explore money habits that work for you, and slowly start incorporating the strategies into your life.

“Winning at money is 80 percent behavior and 20 percent head knowledge. What to do isn’t the problem; doing it is. Most of us know what to do, but we just don’t do it. If I can control the guy in the mirror, I can be skinny and rich.” ― Dave Ramsey