Every financial decision you make can either bring you closer to being wealthy or take you further away. Developing some basic habits and making intentional choices can be the difference between having healthy finances and financial despair. Sometimes building wealth requires us to make the difficult decision to forgo some indulgences.
Building healthy habits is one way to ensure you build wealth overtime. It will take some patience, sacrifice and discipline but if you can control your habits, you can have more control over your life. These 6 habits will make you more confident about money.
1. Prioritize your future
Have SMART goals and keep them in mind always. It can be easy to forget why you started or get distracted by everyday pressures but stay focused on those goals and why you started.
Don’t let FOMO (the fear of missing out) influence your financial decisions. Instead, focus on developing yourself and mastering your skill set for a better future. Focusing on the end game should be enough to keep you motivated.
2. Pay yourself first
This wealth building habit ensures you’re always on track with your financial goals. Paying yourself first ensures you always have money saved up at the end of every month. No matter how good your intentions are, life always happens.
Choosing to save up what’s left at the end of the month might not always be possible and this can affect your financial goals. Paying yourself first helps you create a long-term healthy financial habit of prioritizing saving over spending.
3. Track your spending
The best way to track your spending effectively is with a budget. Most people rather guesstimate their expenses than create a budget they can stick to.
To avoid always wondering where your money goes and to ensure your spending is in check, create a budget that factors in both fixed and variable expenses. You can track your spending with budgeting apps or even a simple spreadsheet.
4. Automate your finances
Automating your finances gives you one less thing to worry about. It also removes the human element (wavering willpower) and gives you a certain level of accountability when it comes to your finances.
You’re able to contribute to things that are important to you without having to think about it. As soon as you’re paid your money should go towards your financial goals and your future self before expenses.
Invest both in yourself and your finances. Invest so your money can make more money for you and your future self can be taken care of. Take time to seek out credible personal growth and investment opportunities and take advantage of them.
This habit is one of the major contributors to financial independence. If you’re planning to build lasting wealth, investing is key! You must ensure you build a well diversified portfolio. Also take time to invest in activities that will bring you personal growth and success.
Devote time to learning something new daily that’ll pay off down the road. Learning about personal finance is critical to building wealth.
Knowledge is power and building lasting wealth doesn’t require a plethora of knowledge. “Investment in knowledge pays the best interest”. Make learning something new part of your daily routine to gain the confidence to make smarter financial decisions.
Inculcating these healthy habits will help you earn more, save more, and get you to your financial goals. Remember, building your wealth might be a slow and steady climb so stay the course and over time, you’ll achieve your dreams.
Wealth is largely the result of habit.
– John Jacob Astor