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Healthy financial habits to live a wealthier life

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Pay yourself first: Set aside some income for savings — about 5 to 10%

It's time to set aside some income for savings. We're talking about 5-10% of your income, but that's up to you! We know that saving is hard, and we want to help you get started by making it easy for you to save more of your money.

When you do this, you'll be able to begin investing in yourself and your future. You'll also have savings in case of emergency—like the day when you have to do an emergency house or car maintenance and need to pay it with what little money you've saved.

Track your spending: Make sure you know where your money is going every month

Rizeapp has an amazing a money tracking feature that makes sure you know exactly where your money is going every month. The app helps you track every single purchase, so you can see how much your spending is going up or down each month. It also lets you set goals and give yourself rewards for reaching them. You can even share your goals and progress with friends!

Create a safety net: Build up emergency savings to cover 3 – 6 months’ worth of expenses

Emergency savings is just what it sounds like: an emergency fund in case of an unforeseen need. But this isn't just about keeping a rainy-day fund. It's about making sure you've got enough money set aside to cover three to six months of expenses—even if that means saving a little bit each month instead of all at once.

The thing is, your emergency fund shouldn't be a giant balance in your checking account. You want to build up savings over time so that when the unexpected does come up, you're prepared for it. That's why Rizeapp makes it easy to build up your savings by automatically depositing your spare change into your account (feature in beta -coming out soon). You can start small and work your way up once you see how much extra money you're making!

Withdrawals and payments: Limit withdrawals and payments from your savings accounts to avoid fees

There are lots of fees associated with saving money. One of the most common is the fee you pay when you make a withdrawal from your savings account.

Banks generally charge an excess withdrawal fee to your savings account if you exceed six transfers per month, but these fees can be avoided.

One major difference between savings accounts and checking accounts is the transaction limit. In the US for example, your savings account comes under federal Regulation which limits you to no more than six automated payments or transfers to a third party per month. While this limit does not apply to your ability to take money out if it’s paid directly to you, it does mean you cannot use savings accounts to make routine payments the way you would with a checking account.

To enforce the limit of six transfers out of a savings account in a statement period, banks customarily charge you a fee for transactions that exceed this limit. Some banks may charge additional fees for transfers, even if you are within the monthly limit of six.

The best way to avoid paying fees like these is to limit withdrawals and payments from your savings accounts to six times a month, even if that means going over your budget slightly.

Pay high-interest debt: Spend less on interest by paying down the debt that costs you the most

If you pay off your highest-interest rate debt, such as credit cards, first, you will reap the most financial benefits. Generally, the higher the interest rate, the higher the borrowing fees. You will reduce your total debt faster if you target this debt and pay it off in full first. Paying off your high-interest debt is the best way to get the most financial return. Rizeapp will give you insights to help you manage your debt in a way that makes sense for you, so you can pay off your highest-interest-rate debts first.

Review your insurance: Protect what counts by checking your insurance coverage once every year

Rizeapp is a simple, easy-to-use app that also helps you check your insurance coverage (feature in beta -coming out soon). It’s a good idea to review your insurance coverage at least once a year to ensure that your family and belongings are appropriately protected. You’ll also want to review your coverage any time you’ve made a major purchase or experienced a significant life event, such as getting married, buying a house, sending your child off to college or receiving an inheritance. These life moments are considered insurance-qualifying events (also known as life-changing events for purposes of insurance), and it’s important to make sure your coverage is up to date to protect the people and things that matter most to you.

An insurance review is a thorough look at your insurance coverage – the policies protecting your vehicles, home, family members and other valuables. 

The review helps provide you the peace of mind that your most treasured belongings (and family members) are adequately protected in case something unexpected happens like a fire, theft or weather event. A review could also result in a potential reduction in your insurance costs if, for example, your agent discovers you are eligible for discounts, or that you require less coverage than you did previously.

Assets and liabilities: The assets you own and the debts you have determine your net worth.

If you're concerned about your finances, Rizeapp is here to help.

We know that it can be difficult to assess your assets and liabilities: what you own and what you owe. How do you know whether or not you have enough money? How do you know if you're in danger of defaulting on loans?

Don't worry! Rizeapp is the app for you! With our insights service, we'll help you assess your assets and liabilities so that you can get a clearer picture of your financial situation.      

Assess your goals: Once a year, think about your short, medium, and long-term financial goals.

With Rizeapp you can assess your goals and see how well they are aligned with your current situation. Whether you're saving for a big holiday or planning for retirement, it's important to make sure that you're on track with your financial goals. With our goal-setting tool, you can set your short, medium, and long-term financial goals for the year. This will help you focus on what's important and make sure you stay on track.