8 Habits to Keep your Finances on Track in 2020

It may seem that keeping track of your financial situation and controlling your money is as simple as reducing the number of expenses you are paying out.

However, if you really want to see improvement in your financial life, you’ve got to develop some good financial habits around saving and investment. This will help you to stay on track of your financial goals in 2020.

Making budgeting a good financial habit

1. Don’t live beyond your means

Living within your means is the foundation of good financial health. Not overspending and being aware of how much money you can spend on a month-to-month basis really is the bedrock of being able to live a financially successful life. This applies, whether you are earning £25,000 a year or £1 million a year.

2. Track what you spend

It can feel overwhelming having to track the money that is going out, but it is as simple as noting down what you spend on a daily basis or using a money-saving app to do the tracking for you. Tracking money will become second nature in no time and it will help you to be aware of where you are leaking money.

3. Make a budgeting plan

When you are tracking money for personal finances or business finances it’s important that you have a clear budget. That means understanding what you’re spending on, what your income is, and where you want the money to go. This includes making a budget for savings and investments, which are a key part to developing a strong financial future.

4. Really follow a specific budget plan

It’s great to have a budget, but you need to have the discipline to follow it as well. If you take from one area by going on a holiday or buying a car, then you need to be able to balance the books somewhere else. Plan your money effectively in order to get more from it.

Emotional spending

5. Don’t spend when emotional

Many people blow large amounts of their budget by falling prey to sales techniques, especially on the internet, or by spending at certain times of the day or week after alcohol or when they feel tired or emotional. Be aware of your spending habits and take control of them. Even if you have a current account, it is not an opportunity to indulge in uncontrolled spending.

6. Begin saving now

Everyone says that they are going to begin saving next week or next year, or when they start earning more money. The reality is that to develop a saving mentality you need to start saving now, and money saved now will do far more in your retirement than money saved in a decade’s time.

7. Increase your power to earn

As well as using investments to increase your earning power and leverage your money, you could also consider taking a course or upscaling your CV. By earning more through a raise in your job or through earning some extra income on the side you will have more money with which to plan your life.

8. Always have an emergency fund

Having some money you can fall back on when things go wrong is key to financial success. If someone falls ill, your car breaks down, or your boiler goes at Christmas, you need to have the money to solve the problem without taking on debt. Build an emergency fund as soon as you can. It’s not only there for emergencies, it also provides you with an incredible peace of mind.


Getting in control of our finances isn’t something that we always naturally do. It is a skill that you can learn and that involves a set of good financial habits that you develop over time. If you don’t focus on keeping your finances on track in 2020, it can lead to a lack of peace of mind and potentially some pretty hard days. So, make sure you put in place good financial habits for 2020.