Eight habits for financial security

Live frugally – If you wrote down everything you spent in a month, you’d find areas in which to save. Budget for short and long term

– Make a list of expenses for a year, or even further on. Prioritise these and assign them to months.

Avoid unnecessary debt – Loans should be used for emergencies and expenses that’ll allow you to progress yourself.

Invest in you – Anything you can do to increase your value to current and prospective employers is money well spent. Go on courses, read books relevant to your industry and attend seminars.

Save – Start saving for your and your family’s future today. But ensure saving for your children’s education doesn’t cost you your retirement savings. There are many ways to fund their education, such as part-time jobs.

Automate savings – Automate transfers into your savings accounts once your salary comes in. Choose an account that’ll grow your money.

Keep an emergency fund – Ideally, keep the equivalent of three to six months’ living costs in an easily-accessible savings account.

Automate bill payment – By automating payments as debit orders at the start of every month, you ensure your bills are paid before you can use that money.

Shirley Smith is COO at Old Mutual Finance. This article was first published on Old Mutual Finance’s blog.