7 Simple habits that will make you rich
Looking after your financed doesn’t have to be difficult or confusing, which is exactly what these simple habits that will make you rich prove. With a little positive thinking, patience and getting into positive money habits you too could be on the road to financial freedom.
It’s so hard to move forwards and work toward something if you don’t actually know where you are going. Setting short and long term goals helps you stay motivated and focused on spending money wisely. Try breaking your goals into smaller steps, for example if your goal is to save $10,000 in one year to go toward a house deposit, break that down into smaller goals of $833 per month. You will feel that sense of achievement sooner and be less likely to feel overwhelmed and give up.
Keep your eye on the prize
Once you have set your goals don’t lose sight of where you are headed. Reaching your financial goals won’t be all smooth running, it will require a whole heap of hard work and persistence and things will come up along the way, such as expensive car repairs or medical bills. Don’t give up, keep reminding yourself of why you are doing this and good it will feel to reach that end goal.
If you struggle to save as much as you would like, automating your finances is the single best thing you could do for yourself. Determine how much you would like to save out of each pay and set up an automatic transfer from your transaction account to an online only savings account. Be sure that the only way you can access money in this savings account is by online bank transfer, the last thing you want is to be able to access the money on impulse from an ATM.
If you find yourself a little forgetful, schedule your bill payments using online banking as soon as they arrive in the mail. Just be sure you schedule the payments from an account that will have a large enough balance when the bills come due.
It’s never too early to start
You might think retirement is decades away and it’s not something to worry about, but that’s not the case. If you start putting aside a little now you are going to end up with so much more come retirement, all thanks to the amazing power of compounding. It’s never to early to start saving, so start now!
Find a cheaper way
I’m amazing with money and get a kick out of saving as much of it as I possibly can, but at the same time I’m not a fan of going without, I guess you could say I like to live a champagne lifestyle on a beer budget! So how do I do it? By always finding a cheaper way. With a quick Google search you can usually find discounts for just about everything, and stores hold that many sales these days that there is no need to pay full price for anything.
Take my love of travel; it’s a top priority for me, but I sure don’t want to blow my entire savings on it. So I wait for sales before booking anything and always search for discount codes, and that goes for every part of the holiday, from flights to accommodation, car hire and attractions. By always keeping an eye out for bargains (and that goes for all areas of your life, from food to clothing to entertainment) you will be able to squeeze so much more out of every single dollar.
See more: 9 Cruise tips that save you money
Pay off your credit card in full every month
Never, ever carry a credit card balance. Credit card interest rates are often sky high, and it’s just plain money down the drain. Make a point of always paying off the balance in full. If you can’t pay it off, you are living above your means and spending more than you earn, and something needs to change. If you are the type of person that can’t control your spending once you have a credit card in your hands, it’s time to be honest with yourself and cut it up. You might find your spending drastically reduces if you switch to a cash only budget.
Live below your means
If there is only one tip that makes you rich, it’s this one! It’s so simple yet something that so many struggle with, yet it’s the one thing that anyone who has accumulated wealth will follow religiously. It’s such simple maths, but spending less than you earn means there will be money left over at the end of the month. The further you reduce your expenses, the higher your savings are going to be. Have you ever met someone who looked as though they were poor, but it turned out they had millions of dollars in the bank? That is a classic example of living below your means right there.
Even as your income increases as you work your way up the career ladder, don’t increase your spending. So many people receive an increase in their income and then without even realising it increase their expenses to match. Make your hard work count and get into the habit of saving any windfalls or pay rises immediately, after all you won’t miss something you never had.
DO YOU HAVE ANY MORE SIMPLE MONEY HABITS THAT WILL MAKE YOU RICH TO ADD TO THE ABOVE LIST? LET US KNOW YOUR THOUGHTS IN THE COMMENTS BELOW.