There's a 98% chance you'll stay broke unless you start doing these 27 financial habits....
Everybody wants to be financially stable, but unless you have a plan to get you there, it’s not going to happen.
Here are 27 that will enable you to set (and reach) your financial goals.
Here are 27 that will enable you to set (and reach) your financial goals.
1. Live Within Your Means
This strategy is the foundation of all good financial habits.
I’m not exaggerating when I say there will be no point in setting good financial goals unless you can live beneath your means.
Seriously.
This strategy is the foundation of all good financial habits.
I’m not exaggerating when I say there will be no point in setting good financial goals unless you can live beneath your means.
Seriously.
2. Pay Yourself, You Deserve It
It’s time to pay yourself first.
If you have a 401k (or another retirement account) this is a way to automate saving money.
Allocate a certain amount to come out of your pay each pay period before you even see it.
It’s time to pay yourself first.
If you have a 401k (or another retirement account) this is a way to automate saving money.
Allocate a certain amount to come out of your pay each pay period before you even see it.
3. Give Yourself a Consistent Raise
If you are participating in your company’s 401(k) plan with 6% and the company‘s 50% matching contribution.
In the coming year, increase your contribution to 7%.
Do this each year, until you meet the maximum contribution.
If you are participating in your company’s 401(k) plan with 6% and the company‘s 50% matching contribution.
In the coming year, increase your contribution to 7%.
Do this each year, until you meet the maximum contribution.
4. Buy Value
By “buy value,” I mean you neither buy the cheapest goods nor the most expensive.
Instead, you look to buy the best value for the money.
Not all products are better simply because they’re more expensive.
Shop around.
By “buy value,” I mean you neither buy the cheapest goods nor the most expensive.
Instead, you look to buy the best value for the money.
Not all products are better simply because they’re more expensive.
Shop around.
5. If You Have to Borrow, You Can’t Afford It
Very few people have $150K sitting around in cash to buy a home, so borrowing makes sense.
Adopting good financial habits means avoiding schemes to stretch your paycheck.
Credit cards are probably the most common way to do this.
Very few people have $150K sitting around in cash to buy a home, so borrowing makes sense.
Adopting good financial habits means avoiding schemes to stretch your paycheck.
Credit cards are probably the most common way to do this.
6. Pay Your Bills Ahead of Time
Paying bills late is another strategy to stretch the paycheck.
All it does is give you a false sense of how much money you have and puts you under tremendous pressure to cover the difference later.
Paying bills late is another strategy to stretch the paycheck.
All it does is give you a false sense of how much money you have and puts you under tremendous pressure to cover the difference later.
7. Read One Financial Book Each Year
If you want to become financially stable, you’ll have to seek advice from the financial masters.
Easy to do, since nearly every one of them has at least one book available.
If you want to become financially stable, you’ll have to seek advice from the financial masters.
Easy to do, since nearly every one of them has at least one book available.
Take advantage of that knowledge.
Some of my favorites:
- Dave Ramsey’s Total Money Makeover
- David Bach’s Smart The Automatic Millionaire
- Ramit Sethi’s I Will Teach You to Be Rich.
- And…well there is of course there is my book
Some of my favorites:
- Dave Ramsey’s Total Money Makeover
- David Bach’s Smart The Automatic Millionaire
- Ramit Sethi’s I Will Teach You to Be Rich.
- And…well there is of course there is my book
8. Track Your Spending
If you don’t have a budget, you probably don’t have any idea where all of your money is going.
By tracking your spending, you will be able to identify the areas of excess.
You may be surprised to find where your money is going.
If you don’t have a budget, you probably don’t have any idea where all of your money is going.
By tracking your spending, you will be able to identify the areas of excess.
You may be surprised to find where your money is going.
9. Spend Less Time Watching TV
TV is nothing but a giant advertising venue, and I’m not just talking about the commercials.
Even TV shows advertise certain wares through a little thing called product placement.
Plus, by watching less TV you can read more books!
TV is nothing but a giant advertising venue, and I’m not just talking about the commercials.
Even TV shows advertise certain wares through a little thing called product placement.
Plus, by watching less TV you can read more books!
10. Balance Your Checkbook Regularly
With online banking, it’s easy to ignore this step.
The balance is readily available but the balance does not reflect upcoming charges or outstanding checks.
If you aren’t fully aware of these, it could lead to bounced check fees.
With online banking, it’s easy to ignore this step.
The balance is readily available but the balance does not reflect upcoming charges or outstanding checks.
If you aren’t fully aware of these, it could lead to bounced check fees.
11. Shop Without Your Credit Cards
Not only will this keep you from running up your credit card balances, but there’s also a good chance you will spend less because you can’t just pay it off later.
It’s real money, being used right now, which helps you make wiser decisions.
Not only will this keep you from running up your credit card balances, but there’s also a good chance you will spend less because you can’t just pay it off later.
It’s real money, being used right now, which helps you make wiser decisions.
12. Pay More Than the Minimum on Your Credit Cards
Get rid of those balances!
Commit to paying more than the minimum payment due.
Also, you should consider consolidating your credit card debt under a single 0% balance transfer card.
Get rid of those balances!
Commit to paying more than the minimum payment due.
Also, you should consider consolidating your credit card debt under a single 0% balance transfer card.
13. Dust Off That Business Idea You’ve Been Putting Off
Do you have a business idea you have been putting off for quite a while?
You may want to give it a serious try.
The internet has made starting and running a business easier and less expensive than ever.
Do you have a business idea you have been putting off for quite a while?
You may want to give it a serious try.
The internet has made starting and running a business easier and less expensive than ever.
14. Learn to Say “No” to Yourself
This is really about getting control of impulse buying.
Making just 20 impulse purchases (or fancy coffees) per month at an average of “only” $5, adds up to $100 spent on stuff you don’t need.
This is really about getting control of impulse buying.
Making just 20 impulse purchases (or fancy coffees) per month at an average of “only” $5, adds up to $100 spent on stuff you don’t need.
15. Learn to Say “No” to Your Kids
You can save a lot of money by learning to say “no” to the random things they see and decide they can’t live without.
It’s about their own impulse buying – seeing something and wanting it – but instead, they’re using your money.
You can save a lot of money by learning to say “no” to the random things they see and decide they can’t live without.
It’s about their own impulse buying – seeing something and wanting it – but instead, they’re using your money.
But the second issue is even more important.
How you spend money, and particularly how you spend it on your children, has important implications for the attitude they will have toward money when they grow up.
How you spend money, and particularly how you spend it on your children, has important implications for the attitude they will have toward money when they grow up.
16. Buy Term and Invest the Difference
Everyone needs life insurance, but everyone complains about how expensive it is to buy it.
Buy term life insurance.
It costs only a fraction of what whole life costs.
You save money and can buy more coverage.
Everyone needs life insurance, but everyone complains about how expensive it is to buy it.
Buy term life insurance.
It costs only a fraction of what whole life costs.
You save money and can buy more coverage.
17. Start a Retirement Savings Plan
If you don’t have a plan through your employer, there are plenty of options.
You can open up a self-directed traditional IRA or a Roth IRA through tons of different platforms.
If you don’t have a plan through your employer, there are plenty of options.
You can open up a self-directed traditional IRA or a Roth IRA through tons of different platforms.
18. Refresh Your Emergency Fund on a Regular Basis
Take a look at your emergency fund at least once each year.
Determine if it is sufficient to cover at least 3 to 6 months of living expenses, based on your current expense level.
Take a look at your emergency fund at least once each year.
Determine if it is sufficient to cover at least 3 to 6 months of living expenses, based on your current expense level.
19. Save For Specific Goals
Those goals could include:
- saving money for your children’s college education
- saving money to replace your car without having to take a loan
- saving money to make major repairs on your home
Those goals could include:
- saving money for your children’s college education
- saving money to replace your car without having to take a loan
- saving money to make major repairs on your home
20. Know What You’re Paying
There’s more going on with investment fees than people normally think.
A difference of just 1% in investment fees can make a substantial difference over time.
There’s more going on with investment fees than people normally think.
A difference of just 1% in investment fees can make a substantial difference over time.
21. Give to Others
This could mean:
- donating your time to a charity or cause
- tithing
- cooking a meal for a friend in need
The point is to put others' needs before yours.
This could mean:
- donating your time to a charity or cause
- tithing
- cooking a meal for a friend in need
The point is to put others' needs before yours.
22. Become the Go To Guy/Girl at Work
Everybody wants a raise at work, but not everyone wants to do what it takes to get one.
The same is true for promotions.
But if you want to fast-track your career, work to become the go-to guy or gal in your office.
Everybody wants a raise at work, but not everyone wants to do what it takes to get one.
The same is true for promotions.
But if you want to fast-track your career, work to become the go-to guy or gal in your office.
23. Get to Work 15 Minutes Early Each Day
You can dramatically improve your work performance and reduce your stress levels.
Just taking the extra time to organize your day can give you a jump on the competition – your coworkers.
That can eventually lead to a bigger paycheck.
You can dramatically improve your work performance and reduce your stress levels.
Just taking the extra time to organize your day can give you a jump on the competition – your coworkers.
That can eventually lead to a bigger paycheck.
24. Cut Down on Your Spending Allowance
Even people who budget can sometimes be lax when it comes to personal spending.
The money you use for:
- entertainment
- casual spending
- Starbucks
GIve yourself a fixed allowance each month then gradually begin cutting it down.
Even people who budget can sometimes be lax when it comes to personal spending.
The money you use for:
- entertainment
- casual spending
- Starbucks
GIve yourself a fixed allowance each month then gradually begin cutting it down.
25. Cut Down on Restaurant Meals
Eating in restaurants has become so common these days we hardly notice it.
But if you find yourself eating out three, four or more times per week, your restaurant habit has become a major expense without you even realizing it.
Eating in restaurants has become so common these days we hardly notice it.
But if you find yourself eating out three, four or more times per week, your restaurant habit has become a major expense without you even realizing it.
26. Drive Your Car a Few Years Longer
Taking out 5-year a loan on your car, then replacing it as soon as the loan is paid, is a very expensive way to drive.
The longer you drive it after the loan is paid off, the less expensive your auto expense will be.
Taking out 5-year a loan on your car, then replacing it as soon as the loan is paid, is a very expensive way to drive.
The longer you drive it after the loan is paid off, the less expensive your auto expense will be.
27. Learn to Love the House You Live In
Keep your house payment stable while your income rises.
Redirect the additional income into:
- savings
- investments
- non-housing debt
This improves your financial situation quicker than buying a more expensive home every few years.
Keep your house payment stable while your income rises.
Redirect the additional income into:
- savings
- investments
- non-housing debt
This improves your financial situation quicker than buying a more expensive home every few years.
If you enjoyed this thread, I’d appreciate a RT of the first tweet.
I create content on:
- Wealth hacking
- Income acceleration
- Online business and entrepreneurship
Follow me for a fun journey towards financial freedom:
@jjeffrose
I create content on:
- Wealth hacking
- Income acceleration
- Online business and entrepreneurship
Follow me for a fun journey towards financial freedom:
@jjeffrose
Loading suggestions...