• National Financial Awareness Day is observed on Aug. 14
  • It emphasizes the importance of developing better financial practices
  • Finances can seem overwhelming but they can also be simple and "straightforward"

Do you have good money habits? You don't have to wait for the New Year to have a closer look at your financial habits and begin taking important steps toward financial stability.

You can do it on National Financial Awareness Day, which falls on Aug. 14. It aims to instill better financial practices that can help people "solidify" their financial status. Therefore, it is a good time to start being more conscious of how you use your own money and pursue financial awareness which, according to National Today, is "the ability to effectively manage finances and means of income efficiently."

The holiday celebrates sound investment practices, American Home Shield (AHS) noted. It also serves as a reminder that tackling one's finances need not be complicated or overwhelming. It can be "straightforward and manageable" even through simple steps, such as taking note of one's wants and needs or making an inventory of one's daily spending. Although these may be small changes, they are simple ones that can lead to better financial planning for the future.

On this day, people are encouraged to seek out more information about finances, whether by reading more about the subject matter, talking to a financial adviser or perhaps joining an investment club.

Let's look at some of the simple ways people can increase financial stability on National Financial Awareness Day. (Courtesy: AHS, Hansom Federal Credit Union and Camino Financial)

  1. Start saving. You don't need to start with a huge amount of money. Even small amounts set aside day by day or on a weekly basis can amount to significant savings in the long run.
  2. Begin creating a budget to help manage one's income versus expenses. This may also help people determine problem areas they can perhaps improve on.
  3. Consider making small changes to your spending habits. For instance, you can start drink water instead of wine when eating out as alcohol tends to be more expensive at restaurants than when bought at liquor stores.
  4. Motivate yourself to create an emergency fund that may help cover possible problems in the future. Unexpected repairs or problems may be costly. It's good to have a backup since you don't know when exactly they are going to happen.
  5. Look into investing. Although it may seem an overwhelming task, there are now apps that can help people invest even with spare change.
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