There are various studies that indicate how long it takes to break old habits and form new ones. Just like thoughts, habits can be created for the better. Better money habits can mean a better way of living for now and in the future. If you’re looking for new habits that will be beneficial to you and your financial position, look no further.
Here are helpful money habits to get you on the path you’re looking for.
Be clear about your financial goals
Sometimes, it’s the lack of clarity that deters us from our financial goals. Creating broad and vague goals won’t help you to move into the next level so it’s important to have clarity about what you want to achieve so you have the ability to set and reach specific goals. Your financial goals should be clear, concise and worth achieving a specific outcome. If you struggle with setting specific financial goals, then you may need to check your self-limiting beliefs and thoughts.
Understand the purpose behind your financial goals
Again, this ties in with being clear about your financial goals. In order to create sustainable habits, you need to understand why you are doing this. For example, if you save £30 a month, without understanding why you are doing it, you might begin to feel like saving £30 is no good and you are better off spending it. Think about why you’re saving money, cutting costs or trying to make extra money. Once you understand the purpose, it’ll help you to become consistent and focused.
The power of consistency
Keeping and forming habits require consistency. So often we break our own habits and then we see the results of that and realise we were better off sticking to a routine. The same goes for money. Making time to be consistent with upkeeping your personal finances is real time used. Whatever your financial goals are you may also encounter roadblocks along the way, so have a plan that is consistent to help you overcome these roadblocks. We all get off track at times but it’s important to get back up the moment you realise you’ve slipped.
Tackle your debt so you can grow financially
Debt is an obstruction to your financial growth. No matter how small the debt is, it will always be a lingering thought in your mind when you are thinking about how you can better your money habits. The most important habit is to get out of debt and stay out of it. Do not become reliant on it but become reliant on your own money and your own budgeting.The more debt piles up the more difficult it becomes to pay off. Use the ‘pay yourself’ rule to pay off your debt. So when you get paid, pay yourself first and that means making your fixed expenses and your debt a priority. By forming this habit you’ll be a step closer to becoming debt-free.
Increase your net worth
Another way to tackle your financial goals is to increase your income and wealth. You can either cut back your expenses or find another way to increase them. Instead of relying on one source of income, diversify your income streams. You can create additional income by taking a second job, buying and selling items online or taking surveys.
This post was written by Freda.