Financially sound, successful and responsible people do not build their wealth overnight or by accident. Becoming rich takes serious will power and long term vision. To be rich, you have to keep your eye on the prizes of financial freedom.
You can only achieve this by sacrificing your current wants and develop smart financial habits.
Discussed below are the top 7 habits you can put into practice right now.
1. Get Started Early
As the old saying goes; An early bird catches the worm. In this case, gets to retire early and in style. The sooner you get your money to work for you, the more time it will require to grow.
Whether you are working for a company or self-employed, getting a paycheck means you have the opportunity to invest; thus, you can seize the opportunity ASAP
Cut your spending and start investing as much money you can. You never know which investment is going to pay multiple dividends in the years to come.
It can make the difference between retiring early or never at all.
The bottom line, whatever the situation, saving and investing today is better than waiting. What are you waiting for?
2. Automate Your Savings
You can only be your worst enemy if you keep postponing your savings. Never procrastinate or neglect to pay yourself first. You might give in to the temptation of spending more than you should. No doubt, this is a perfect recipe for not being rich.
However, the best way to get yourself off the hook is to automate your savings. Meaning, you have to set up recurring transfers regularly from checking account to your savings and investment accounts.
In this way, you’re likely to save money that you would otherwise spend. Another way to do this is have a percentage of your paycheck go directly into your savings account.
It’s much easier to save it if you never see it. In order for this to work you must be disciplined to never touch your savings. Personally, I will borrow money from a friend or try to work extra hours before touch my savings. In fact, I’d probably sell plasma before touching my savings.
3. Set Up An Emergency Fund
In order to protect your savings even further, it’s important that you have additional funds set aside for emergencies.
This will give you cushion should something arise (and it will) such as a car troubles, an unexpected bill, loss of a job, or anything else that inevitably happens up on a rainy day.
When you have an emergency fund to dip into, you are planning ahead and bullet proofing your savings and investments even further.
Set up an online bank account and make monthly payments into it until you have at least $1,000. From here you can grow your emergency fund until you have 3-6 months of living expenses covered.
4. Never Carry a Credit Card Balance
High-interest debt rate is one of the biggest threats to your financial freedom. Doing that can seriously drag you down and cost you thousands in unnecessary interest charges and fees; thus, preventing you from saving more.
To be rich, you have to stop the habit of carrying credit card balances.
Use credit cards only to improve your credit so you can buy more assets, not liabilities. Successful people use credit to buy assets in order to grow more wealth. Learn how to leverage debt to make money work for you.
5. Live Like Your Poor
Think about this; have you ever met someone modest and later you find out that they are rolling in dough? Most rich people do not spend money foolishly. They are rich for reason. Millionaires are all around, and most of them are not the people you would probably think of.
Rich people live below their means in order to save. A typical poor man will go on showcasing what they have, something which millionaires do not do. Of course, it is easy to live below your means, but spending less will help you save a lot more.
6. Stay Disciplined
The temptation to live beyond your means is all around you. It is difficult to escape the pressure to spend your hard-earned money. The problem is once you overspend, you get into debt and long-term financial problems.
If you want to be rich, avoid negative influences as much as possible. You can start by unsubscribing from all retail emails and avoid malls. Replace the emails subscriptions with words that motivate you.
7. Be Goal Oriented
Set SMART goals to inspire, motivate, and give purpose to life. Most people have common goals such as paying off debts, buying new cars, and starting a family. Unfortunately, it is critical to note that the daily stresses of life overshadow goals and often get neglected.
When goals are not followed, they lose meaning and later influence your behavior. In turn, this leads to bad financial habits and your dream of becoming rich will just be shuttered just like that. It will turn out to be nothing but a dream.
To make it a reality, stay focused on the goals by committing yourself to them. You can achieve this by assigning new targets and prioritizing them. Besides, you should always display your goals in places where you can be reminded of them regularly, which will keep you accountable and help you stay on track.
Implementing these 7 habits right away will help you reach your wealth goals. You can start by subscribing to Stache Money’s Newsletter. Here you will get quick tips to help you scale your wealth from zero to $1 million and beyond: