This post is sponsored by BECU. All opinions are my own.

We all have a unique relationship with money. Our financial habits are influenced by many things such as our upbringing, beliefs, the society we live in, and current obligations. Adjusting our habits can be a challenge for many of us, even if we are aware of the short and long-term benefits.

When I began my own financial journey, it was off to a rocky start. My main focus was making ends meet and saving what was left, if any, for a rainy day. Over time, I learned that money management requires intentionality. I took the initiative to evaluate my financial habits and set intentional monetary goals. It was a gradual process that required a lot of patience as well as trial and error. I learned a few things along the way and wanted to share a few of them with you. Plus, I’ve been grateful to have BECU by my side to strengthen my financial literacy and provide useful resources, tools, and tips to help me better save and spend.

Below are some tips to help you strengthen your financial habits:

1. Set Realistic Financial Goals

When setting financial goals, start small at the beginning and aim your bar high in the long run. Setting realistic goals will keep you encouraged and committed. When I first started establishing my own financial goals, I struggled to keep up because they were more ambitious than I could fulfill at the time. I originally told myself that I could accomplish what should have been a long-term goal in a short period of time. Eventually, I gave up since I was frustrated and felt like I would never get there.

Over time, I learned to set achievable goals in three categories: short-term, mid-term, and long-term:

Short-term: Goals that can be accomplished within three years. Some of mine were starting an emergency fund and saving for my bucket list trip - however, the uncertain times we are facing may impact this process. You can also start by building a budget to determine how much you want to save and are able to spend.

Mid-term: Goals that can be accomplished in three to five years. Some examples include saving for a down payment on a car and/or paying off credit card debt.

Long-term: Goals that can take five or more years to achieve. These goals are normally things like saving for retirement or paying off a long-term debt like a mortgage.

These differentiators helped me set realistic goals and put me on a solid path to become financially stable. A great way to start this process is by scheduling an appointment with one of BECU’s Financial Health Check Specialists. During this phone-based coaching session, you share your money goals and the specialist shows you how to take immediate action: naming bank accounts, building savings, setting up recurring transfers, and managing debt.

2. Reduce or Eliminate Debt

Debt comes with accumulating interest that could become very expensive over time. Building a solid plan to pay it off is important for having financial freedom in the future. One of my mid-term goals was paying off my student loan debt by the spring of 2021. By committing to paying more than the minimum amount due, I am currently on track to reach this goal. Financial wins are not limited to saving a lot of money or buying property. Paying down your debt and not falling into more debt are wins, too.

3. Hold Yourself Accountable

Are you sticking to your goals? How often are you analyzing your financial situation?

Keeping a close eye on your finances and how you’re measuring up to your goals is an important part of the process. I find it helpful to take a few hours every week to detail my spending and account for expenses. If I find myself spending more on my wants than needs, it helps me course correct before I end up missing my goals for the month. Financial apps like the BECU Money Manager tool have helped me keep track of my checking and savings accounts, loan payments, retirement savings, and more all in one place.

4. Live Within Your Means

In the digital age where we feel pressured to “keep up with the Joneses”, it takes extra discipline to stick to our financial goals. If you have social media accounts, you might have compared your lifestyle or wealth to that of your peers. As a result, this may have caused you to make purchase decisions that went against your overall financial goals simply for appearance. I have been there myself and this is often a hard cycle to shake off. What has helped me is identifying these triggers so I can actively work on avoiding them.

Before I make unplanned purchasing decisions, I ask myself the following questions:

1. Is this a want or a need?

2. Would I be proud of this purchase tomorrow or even the day after?

3. What goals am I compromising to accommodate this purchase?

5. View Money Management as a Form of Self-Care

It’s imperative to understand the effects of money on your overall health. Since money can be a source of stress and anxiety, managing it is considered a form of self-care. Viewing my finances as one dimension of my wellness has been a game-changer for me. Saving up for an emergency fund, paying down debt, and doing your best to pay your bills on time are all ways to care for yourself.

Meeting our financial goals is dependent on our habits. It’s possible to slowly change and adjust familiar habits that are not conducive to growth. If you want or are searching for additional support and assistance on how to properly evaluate your habits and your financial journey, I encourage you to utilize the BECU resources mentioned in this post. Good luck on your journey!