As you consider the opportunities you have available to give you a better hold on your financial wellbeing, particularly in the long-term, I’m sure you have considered how making proactive choices to cut back on life’s little luxuries can help you save over the longer term.

The everyday thinking that leads us to these proactive choices is rarely taught. It requires an active thought-process that must, in order to be applied effectively, be learned and understood.

As a result of this, we see a great number of people absentmindedly carrying out poor financial routines every day.

Luckily, a certain amount of consideration can help adapt these actions to form good long-term habits and improve financial wellbeing.

Being fully aware of how much money is in your account at all times and budgeting accordingly is essential. Ideally, you will know how much is in your account at this present point in time, how much you had yesterday, and how much you will have a week from now. Budgeting can be as simple as listing all of your bills and expenses each month and will ultimately mean you encounter fewer financial surprises, putting you in better stead to manage your finances. The cornerstone to long term financial wellbeing is the building a stable emergency fund through responsible spending.

Reducing spending is on just about everyone’s radar, but how often do people act on it? Planning a shopping trip to take only the money you will need to spend ensures your purchases remain within your means. If you do make an impulse purchase, you will have to save on other buys to do so. Consider adding the loose change left over after a night out to your emergency fund.

In addition, while it seems easy, paying bills automatically has been found to desensitise you to the spending process. This increases the chance of forgetting to keep enough money in your account when the bill is charged, leading to potential overdraft fees or late payment penalties. Alternatively, set reminders to pay bills at set times each month, going through the process manually.

Hopefully these points will spark your consideration of the financial choices you make each day, as practising good proactive habits will mean you are fundamentally on your way to a healthy financial wellbeing.