Guest speaker, Tina Roth
The development of "good habits" has become an industry. By Charles Duhigg of The power of habit to Gretchen Rubins, Better than before: what I have learned about making and giving up habits – sleeping more, breaking sugar, hesitating less, and generally building a happier life Creating good habits is important for the entire spectrum or for our lives. This article will show you how to be financially successful with a few simple habits. Simple financial success is not witchcraft. Start early, start small and with practice you can become financially successful.
Definition of financial success
Simple financial success is achieving your personal financial goals. There is a reason why they are referred to as "personal" financial goals, and that is because they are defined by you and not by society.
While a person might be thrilled to own a home, have $ 15,000 on the bank, and have a good job, another person over the age of fifty could seek financial independence.
Before you can take the steps to financial freedom, you need to take a minute to find out What is financial success?to you.
What does financial success mean to you?
Research has shown that your happiness does not increase significantly after acquiring a certain amount of money. So you can realistically have financial success without having a boatload of money. In fact, financial success is more connected with these intangible assets than with a huge net worth:
Financial success means a secure future. Financial success means you have enough money to cover your basic living expenses and some extras for a satisfying life today and tomorrow. The dollar amount depends on your place of residence and your lifestyle.
Once you have defined your priorities and your picture of financial success, you can learn how to be financially successful. And the steps to financial freedom are just habits that are strung together over a period of time and lead to your goal.
Financial success means that you have the basic needs. This includes a home, transportation, food and some extras. Depending on your lifestyle, financial success does not have to cost a log.
Financial success means you have time to do what matters. No matter how much money you have, if you do not have the time to enjoy life, you can not really enjoy financial success.
To shape your financial success with solid habits, you must set your personal financial goals. Whether you are buying a home or investing in real estate, writing down your goals is the first step to achieving them.
What are financial success habits?
We do not do our habits. Our habits make us. Getting rid of habits is a Herculean task, or perhaps it is even more difficult, because Hercules struggled with external forces, but is the "habit fight" with himself. Habits that help you to achieve financial success and ultimately financial freedom are no more difficult than habits that lead you to the path of perdition. They are simply a series of good money decisions that are put together and repeated.
If your goal is to gain financial freedom, winning the fight is not an option. You need to strangle the bad habits that you spend as well as replace them with good habits in order to gain financial freedom.
How can you win the fight and gain financial freedom and success?
My advice is to create and practice good financial habits. I know that the good and the bad binary file is a reductionist idea. But I tried it myself and it worked. It can work for you as well. Below are the good habits that can boost your financial success and possibly lead to financial freedom.
1. Earn more, spend less
There should be a share. If you make $ 4,000 a month, spend no more than $ 2,000. Your friends may call you stingy, but who cares? Many people, whose life stories are similar to fairy tales from rags to wealth, said they had become accustomed to the destitute lifestyle and continued to thrive on the millionaire's age. Here are tips for increasing your income.
They were wise. They had the realization that there is no connection between earning more and spending more. Making money is the result of financial success, which requires hard work and diligence. Extravagant expenses, however, show a person who has little control over their expenses.
Bonus: 26 ways to earn money now
2. Do not wait until you invest
And let your hair turn gray. Invest when you are young. You have a whole life ahead of you. Even if you fail, you can still get up and invest again. In the strong likelihood that you succeed, you do not have to look back.
Although investments involve risks, it is riskier not to invest when you are young. Losing the first few years in which your money has the time to grow and grow is the riskiest way of all. The younger you are, the more time you need to spend on early losses. Investors who have stayed on the market through ups and downs and have not gotten their money have not lost any investment funds over a 20-year period.
As you grow older, you have families to attend to and financial commitments to grow. If you start early, you have a habit of focusing on yourself and your financial future.
If you start earlier, you can invest less to build significant wealth.
3. Love your job
When passion and career go hand in hand, it becomes easy to succeed. Loving your job may not be easy for you, but if you love to do what you do, you enter the first stage of financial success. They take the work seriously, face no working pressure and do not complain about close-knit work.
Learn how to save for retirement and become a millionaire
In short, you dedicate more time to your work. It may not immediately lead to money making, but you will develop skills and over time you will be fine in what you do. This leads to financial success. You do not have to be an investment banker or rocket scientist. Whatever you do, make sure you love it.
Why not make money? Use this extra money to reach your financial goals faster.
4. Budget and manage money properly
Saving money is the prerequisite for financial success. Although some lucky people succeed overnight, the percentage of such people is so low that they do not need to be taken into account. An average person can not be financially free if they have no budget.
For the simplest budget, and my favorite is to automate your saving and investing. This means that your investment will automatically be transferred from your paycheque to your 401 (k), investment account and / or IRA. Transfer something to an emergency savings account.
Then spend what's left!
Or you can keep track of income and expenses and even use an investment and budgeting app to simplify your thinking.
Budgeting is especially important when you are in your thirties and forties. If you put away your money earlier, you will need less actual dollars to realize your retirement dreams. As long as there is no system that prevents the outflow of money, your financial situation can never be better. Budgeting is part of the money management.
To make money management habits, track all your expenses. Use your online resources to save money. When setting a budget, first cover your needs. Saving, investing, renting, eating and the essentials. Your wishes and desires come last.
5. Avoid borrowing money
Sometimes a debt is inevitable. A student loan is the type of debt that may be required. In many cases, you can not continue your studies if you do not accept a student loan. But not all debts are like that. Credit card debt is almost always unnecessary. In fact, you can live debt free,
Here you can find a remedy to stop credit card debt. The funds spend only 10% of the credit limit. If your credit limit is $ 5,000, do not spend more than $ 500. Make it a habit. It may be difficult if you are a shopaholic, but over time you will get used to it.
And pay your credit card bill every month completely! If you can not afford to pay for something, in most cases you do not really need it.
If you have a car loan, you pay it off as soon as possible. If you have not started paying your debts, now is the time.
Practice these monetary habits to achieve financial success. Getting started is not easy, but the results will spur you on to greater financial success.
Written by Tina Roth Pro Finance Blog
Updated: October 24, 2019
Note: We are not the author of this content. For the Authentic and complete version,
Check its Original Source