Boss Blog: Your habits will define you….good or bad
This week’s edition of “Boss Blog” is going to go a bit deeper than usual. Today I am going to discuss habits. Think about what you do every day. Go to work, eat lunch, go to the gym, drink a coffee, have a beer, watch a movie, watch the news, walk the dog, pay a bill, hug your wife, read a book, go to sleep. These are all habits. Some of them you might not think of these as “habits.” Going to work seems like a must do, so why is it a habit? Dictionary.com defines a habit as “An acquired behavior pattern regularly followed until it has become almost involuntary.” Sounds like going to work to me. Eating is questionable too. You need to eat to live right? Well, think about what you eat. That’s the habit. Eating healthy is a habit. Eating poorly is too. What I am getting at is the things you do might not be a habit, but the way you do them is. Being lazy at work is a habit, a bad one. Being late on your bills is a habit too, another bad one. Drinking five beers a day is a habit as well, a very bad one. Busting your butt at work is a habit, a good one. Saving a portion of your paycheque is a habit, another good one. Exercising daily is a habit too, a very good one.
I’m at the age now where I feel there is a clear line in the sand. I cross that line and my habits will become permanent. I stay on the other side and I can change the bad habits and add or enhance the good ones. We all meet those old people who are stuck in their ways and there is no use trying to change them. I don’t want to be one of them. It isn’t going to be easy and it isn’t going to happen overnight. It has to happen though, in my opinion, it’s life or death.
Sorry to sound so dramatic but in my opinion, it’s the difference between a good life and a bad one. The good habits will lead to a good life and the bad ones, well you know. Now I’m going to go over some bad habits and some good ones. I will relate them to your money because you all know that’s what I do.
Bad Habits:
1)Drinking – Besides the obvious health benefits, not drinking as much will really fatten your wallet. From the age of 25-30, I barely went out and took my net worth from -50K to +50K. That 100K swing was no accident. If you have to go out, having a couple is acceptable. If not, you might need new friends.
2) Smoking – Again, another health benefit when quitting this habit. I’m not saying it’s going to be easy, but it is definitely worth the attempt. Cigarettes cost anywhere from $8 to even $15 a pack. That’s an expensive way to die. I have a good friend who quit smoking, but he still put $15 in his savings account every 2 days, when he would have bought a pack. After a few months, he had about $700. After one year he will have over $2700. Not bad eh? So, Ummm, yeah you should quit.
3) Dining out daily – I know many people that never cook a meal. They eat every meal on the go. I get caught in this trap sometimes too, mainly because I’m busy, busy, busy. The question you have to ask yourself is this: If you never have extra cash, yet you eat out daily, does that make sense? $20 a day is $600 a month. Do you have that laying around? If you have no savings, or not enough, now maybe you know why.
4) Your acceptance of debt – I hear this one all the time, “If you aren’t in debt, you aren’t living.” Excuse my language but F— That! (I have the bad habit of swearing, working on that one too) You ever wonder why it became acceptable to be in debt all of a sudden. How a generation ago debt was shameful and now it’s fashionable. Ever think about how personal debt levels have risen to insane levels during that same time? Hmmmm???? Seems to me like there are some rich white dudes in suits sitting around a table laughing at us all. Hate your debt. Don’t accept it, don’t be alright with it, and don’t laugh it off. Want proof? I am far less stressed about money now that I am debt free. I was a “wound up mess” when I was in debt and relationships suffered. The air is fresher, the grass is greener and every dollar I spend is mine. That’s what’s up.
Other Habits will make your money grow. They will allow you to be stress-free, about money anyway. You will own your home, retire comfortably and weather any storm. These are the ones to make routine.
Good Habits:
1) Plan your Spending – Certain things you know you have to pay for. Bills every month are consistent. Well if you know what they will be every month then why do you find it hard to come up with the cash? There are two options: either you don’t make enough money or you aren’t planning your spending. Chances are it’s the second one. Know what you need every month to get by and put it away as the money comes in. Don’t spend it, seriously don’t.
2) Save Regularly – Just like you put money aside for bills every month you also have to put it away for savings. I believe everyone should be able to save at least 15% of their pay. If you can’t do that then there are two options: Either you don’t make enough or you spend way too much. Chances are it’s one or the other or both. You go into any workplace and pick out ten people. Ask those ten people to show their bank statements. Amongst those people you will see some have money, some don’t. Some have investments, some don’t. Some have debt, some don’t. If they all make the same money then why are some broke and some aren’t? We all know the answer to that, it’s simple. Save your money, now.
3) Take yourself seriously, especially your work – Many of the people I meet who are nonchalant about work have terrible balance sheets. You have to get into the habit of respecting your paycheque and therefore respecting your job. If you are a garbage man, sandwich artist, or a CEO of a company, be the best. You will be surprised what opportunities come your way when you do. You also shouldn’t be surprised that if you don’t take your job seriously that you end up without one. Can you make demands about employment, compensation, vacation time, job titles if you don’t show your worth? Make yourself irreplaceable, then you will own them and no one will own you.
The habits you ingrain into your life now will shape your life, good or bad. Push your own personal limits. Put down the smoke. Stay in and have a glass of wine instead of going out. Go the extra mile when at work. Make that money, the money you deserve. Once you make that money; save it, invest it, protect it, and fight for it. One of my favorite movies of all time is the “Shawshank Redemption” starring Tim Robbins and Morgan Freeman. The 1994 film follows a wrongly convicted man’s journey through the prison system. A glaring undertone of the movie is acceptance. Most of the convicts accepted their fate, life in prison. Tim’s character “Andy Dufrense” never accepted his fate. He didn’t fall into the habit of prison life; he didn’t accept that was his destiny. The best line of the movie had to be when he told Morgan Freeman’s character “Red” that we all have a choice. “Get busy living, or get busy dying.” I know which one I want to do.
Facebook – @JoeBudgetBoss LinkedIn – Joseph James Francis Quora – Joseph James Francis
Twitter – @JoeBudgetBoss Instagram – @JoeBudgetBoss
Joseph James Francis is a Financial Advisor. You can find him on various social media platforms and at www.budgetboss.ca.