Thursday, December 14, 2017
Want to Be Rich? A Dozen Dynamic Money Habits
I am a firm believer in forming good habits. I know how tough it can be to change what you are doing and correct past mistakes. I think it should be a goal of all of ours to change some of our bad habits and turn them into good ones. This is especially true with your money. Bad money habits can crush you financially, emotionally and even physically. On the flip side, good money habits can make you feel like a million bucks even if you only have a thousand bucks. In with the good and out with the bad right? So, what are good money habits? You might be practicing them already and not even know it. In this post, I will show you 12 money habits that will help you become richer. We all want more money, sometimes the best way to do it is utilizing the money we have better. Let’s get started.
1) Frugality
I detest cheap people, but to be honest, they might be on to something. I believe there is a difference between cheapness and frugality. Cheapness means you don’t pay full value for goods and services. Frugality means you limit what you spend your money on or look for better prices. Cheap people go out and don’t tip the waiter. Frugal people cook their own dinner. Value each buck and put it in the right spots. Oh yeah, always tip your waiter too.
How to Start Living the Frugal Life – The Balance
2) Eagerness
There are very few qualities that a better than eagerness. I love being around people that are eager to work, eager to learn and eager to get their day started. When it comes to your money you should be eager to know how to utilize it better. You should be eager to see your savings grow. You should be eager to have annual reviews with your advisor. You should be eager to make more money and better your life. Tomorrow is for suckers, winners get shit done right now.
Money Never Sleeps – Who Sleeps and Earns the Most – Tuck
3) Budgeting
How many times have I talked about this? Countries have budgets. Businesses have budgets. Charities have budgets. Hell, even euchre clubs have budgets. Why would you think that you would not need a budget? Budgets provide you with a guideline to use your money properly. Budgets aren’t constraining, they are flexible. Not having a budget is constraining, because there is more month than money. Budgets make sure the month ends before the money ends. I named the site that for a reason.
4) Paying bills early
I pay most of my bills early. The reason is simple, it allows me more time to pay them later if I need to. Being ahead of the game buys you time and the habit of it makes life far simpler. You never have to worry about late fees. You never have to worry about credit score issues. You just never have to worry. Be in the habit of getting things done earlier as opposed to later, it will make your life a lot easier believe me.
5) Using cash
Remember that colorful stuff you used to have in your wallet? Using cash will help some people manage their money a lot better. Others need a cash diet because they bleed it. For most people, a cash system is what works best. If you spend way too much money every week at the coffee shop, the lunch café, the mini-mart or the newsstand, then using cash might be for you. I take out $100 every week for my day to day expenses like lunch, coffee or whatever. When the hundred is done, then I’m done. I challenge myself to use less than that and most of the time I do. I’ve gone weeks without having to spend a cent on the day to day stuff. Try giving yourself an allowance, it might change your life.
I Tried An All-Cash Diet For 60 Days, And Here’s What I Learned – The Financial Diet
6) Preparing
Being prepared is boring but it is so, so, so very important. Making sure you are prepared for future expenses is a big one. You know you are going to have to purchase a new car every 5 years, well be prepared. You know maintenance on your home runs you $3000 a year on average, well be prepared. We can’t predict the future, but we can anticipate things that may come up. Don’t be the guy looking for your passport an hour before your flight.
7) Research important things
If you don’t do a bit of homework when it comes to the things you spend your money on then you are in trouble. Researching can help you find deals, get better service for your dollar and avoid traps. Taking a little extra time can save you thousands and it makes you more educated which is never a bad thing. This is especially true when it comes to investments and insurance. You should know all the benefits and features of what you are putting your money in. A knowledgeable client is the best kind of client.
Stock Market 101 – Budget Boss
8) Automate
If you are a freak like me, you can your bills manually every month. For everyone else, you must automate your payments. It makes life so much simpler. You will never be late, and you will never pay fees. You should also automate your savings. Taking money away from you right when you get paid and stashing it in an investment account will save you time and not allow you to spend that money elsewhere. It is then of huge importance to stay on budget every month, so you are not going into debt on the backend.
9) Set financial goals
You must set financial goals and other goals for that matter. It becomes too easy to drift aimlessly through life without really accomplishing anything. It is the goal setting that keeps you on track and helps you better your situation. Your net worth chart should always be going up and you only do that by setting a goal for that to be the case. Simply by existing, you will not advance. Accomplishing goals is also very rewarding and will propel you to get more done. It is a cycle of amazingness.
The Top Financial Goals: From Your 20’s to Your 60’s – Budget Boss
10) Save any windfalls
You get that juicy tax return and what is your first instinct? Let’s go shopping! That should be the last thing you do. Windfalls should be used to improve your net worth, that is unless you already have achieved your goals. If not use any money you come into to pay down debt, boost an emergency fund, fund a needed large purchase, or save for the future. Saving that money you didn’t expect, will give you an extra boost and encourage further savings in the future. It is the smart thing to do.
Tax Refund: 10 Things To Do & 5 Things Not To Do – The Simple Dollar
11) Knowing your worth
I believe that everyone should be paid a fair wage. I believe that everyone deserves to live a life free from the grips of poverty. I believe everyone has it in them to be good with money and excel at life. I think when we don’t have those things it is because we don’t fully know our worth. When we don’t know our worth we allow others to not give us what we are worth. This is true at work, with friends, and at home. It isn’t cockiness or bravado, it is simple human decency for yourself, the most important person there is.
12) Surround yourself with successful people
You are the company you keep. If you are constantly around whiners, you will start to whine a lot. If you are around alcoholics, you will drink more. If you are around people with no drive or ambition, well you get the point. Try to surround yourself with people who you wish to be like. It will help guide you on the road to success. Remember that no idea is original and the same is true of success. Some of the richest, most powerful people in the world have mentors. It’s no mistake, its just good business.
Good money habits beget more good money habits. You will want to strive to improve the bad habits you have and highlight the good ones. It is not possible to be perfect, but it is possible to get better all the time.
Thanks for tuning in as Habits Week continues at Budget Boss. Tune in tomorrow as I discuss the best Habit you could ever have when it comes to your finances. If you would like to learn more about good money habits, please do not hesitate to message me at joe@budgetboss.ca. have a great day Bosses!
“I think if you stop bad habits, and you stop long enough, you develop good habits.” – Jordan Knight
Email – joe@budgetboss.ca
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