9 Surprising Money Habits of the Wealthy
Wealthy people all have something in common, and that is they have solid money habits!
These money habits are something I lack and am trying to develop in myself, and I think all of us should work on forming good habits.
For a long time, we lived paycheck-to-paycheck. Every time something came up, it was stressful trying to figure out where we were going to get the money to take care of it.
We crawled out of that hole eventually, but we are far from out of the woods. The thing is, we don’t live paycheck-to-paycheck anymore however we still don’t have the money to do the things we want to do.
However, I know we aren’t the only ones in this same situation! Indeed, that is the reason you are here reading this.
If you struggle, as we have in the past and still occasionally do, then I think you will find these tips to be very helpful! Above all, this debt-free journey will be a lot of hard work and dedication, but we can all achieve this!
1. Set Goals
Many wealthy people weren’t born into it, didn’t inherit their money. Many of them built their wealth over a period of time with lots of planning.
A good money habit is to set goals!
Set monthly and yearly goals for your savings, retirement accounts, debt repayment, etc.
An important factor when doing this is to make sure you set milestones and deadlines! Also, hold yourself accountable for those deadlines!
For example, I started setting goals when I started this financial freedom journey. More recently, I started writing them down to better hold myself accountable. You can read about that here.
Above all, one of your top goals should be to make some extra cash! An extremely easy way to do that is to complete surveys online in your spare time!
Another great way to earn extra income is by signing up for Swagbucks. Earn extra cash to do things you already do, such as watch videos or play games!
Or, you can head on over to Swagbucks, watch some videos or do some online shopping to earn some extra spending money! There are several other ways to earn as well, for example, playing games! Check it out!
Don’t forget to celebrate your goal successes! That doesn’t mean buy an expensive gift for yourself and ruin your progress!
2. Prioritize Your Goals
Similarly to setting goals, we need to prioritize those goals appropriately!
Figure out which goals are the most important to work towards first.
For example, if one of your goals is to pay off a credit card, as it should be, then you would prioritize the highest interest credit card.
Most importantly, act on the things that will lower your monthly payments the most, give you the most income, or cut the most significant costs.
Further, don’t set such unachievable goals and priorities that you chase them forever, but they always remain out of reach!
3. Have the Right Mindset
So, pretty much my entire life I have lived by the YOLO attitude! You know, you only live once!
I bought anything and everything that I wanted, whether I had the money or could afford it. I wanted to enjoy life!
Now, I realize how dumb that was and have decided to change that.
My mindset has completely changed to that of a financial freedom mindset! I am going to do my best each and every day to complete my goals so that someday I will be debt-free!
4. Get Financial Education
This money habit may be the most important.
We should never stop learning!
As we go down this financial freedom road, we must always be expanding our knowledge and looking for new ideas.
We need to challenge the way we think about paying off debt, saving money, budgeting, etc.
Just remember, the more knowledge we can pull from wealthy people, the more likely we become wealthy.
5. Measure Risks
I have talked about this before and is something that I used to struggle with routinely.
We need to measure the importance of something, use reason when making purchases, big or small! Wants and needs! Make your financial freedom more important than your desire for a new television or new car!
6. Follow a Budget
I cannot stress enough the importance of this money habit!
A properly formed budget can make such a massive difference in how much money you have. I was shocked when I started working on mine and examined where my money was going.
Please, educate yourself on budgets and how to start and maintain one!
Above all, please get a good budget planner! Don’t just write a bunch of chicken scratch in a notebook! That will get you nowhere.
You can start here if you would like:
7. Have Different Bank Accounts
Do you struggle with saving money?
I know I have in the past and still do to some extent. I used to have separate bank accounts for that reason. I have been thinking of doing this again.
Firstly, if you have a second account that is harder to access you won’t withdrawal from it as often.
Secondly, having a direct deposit to that second account makes saving money easier.
8. Have an Emergency Fund
Have you heard this before? You have if you have done any form of personal finance education.
There is nothing worse than paying extra to one of your debts, such as a credit card, then an emergency happens, and you have to use that credit card to pay for it! That recently happened to me when my air conditioning broke. The whole thing is explained here.
Having an emergency fund, in my opinion, is the absolute most crucial thing you can do if you are trying to achieve financial freedom!
My favorite method of saving money is by using Digit. This is my primary way of saving towards my emergency fund, and it is technically a separate bank account!
Further, here is a great way to add money to your emergency fund. Use Ibotta to get cash back on your everyday purchases, and then put that money into your emergency fund!
9. Avoid Credit Cards
Do I even need to discuss this money habit? I think we all know that credit cards are terrible for our financial freedom journey!
I cannot tell you how many times I have wanted something, didn’t have the money for it and charged it on my credit card!
If you are like me in that aspect, the best thing you can do for yourself is cut them up! However, does cutting them up even work anymore with everything being online?? You know what I mean, though. Stop using them!
Now, having one around for emergencies is helpful and in some cases, necessary! Go back to number 8! Save up an emergency fund and stop using your credit cards!
Well, that’s my goal, and I am working towards that every single day! It won’t happen overnight.
To Sum Up…
Start working on these habits!
Our goal is to become debt-free to be able to do the things we want! To chase our dreams and turn them into reality!
YOUR TURN – What are some financial habits that help you? Please share them with us in the comments below!