10 Personal Money Habits to Help You Build Wealth

10 Personal Money Habits to Help You Build Wealth

A lot of people think that a high salary is needed to achieve financial freedom but the truth is that if you build these financial habits, you can do it regardless of your income.  

1. Write a budget and stick to it. To plan effectively you need to prepare a budget. Usually, people write an annual budget and then break it down to coincide with their pay cycle, whether it is weekly, fortnightly or monthly. Writing a budget down will tell you exactly what you need to spend and how much you can afford to save. Keep in mind that you should include all of your expenses so you don't have money leaking from the budget.

2. Pay your bills on time. Develop the financial habit of paying everything on time including your electricity bills, mortgage payments, and credit card bills. You can put reminders into your calendar to remind you. If you pay your bills on time you won't incur late fees. Another way to save money on bills is by paying annually as many utilities will give you a discount. However, you need to be careful with this as paying one big bill per year can disrupt your budget unless you have planned for it carefully.

4. Buy what you need, not what you want. Impulse buying is the Number One enemy of someone trying to stick to a budget. While it might be tempting to buy new shoes or bags that are on sale, you should ask yourself first if you really need them. Do you only want the shoes because they are on sale? Think about it many times before you actually buy it.

5. Learn to live cheaply. Living frugally will pay off in the future. Some ways to save money include limiting your eating out and choosing cheaper leisure activities. This sounds like a sacrifice but once you are organised you will be amazed that you ever wasted money on things like buying lunch which were not enjoyable anyway.

6. Automatic saving. Every pay day, you should pay yourself first by putting some money aside for long term savings. You can automatically have your money transferred to your chosen investment or account. This way you don’t have to remember each time.

7. Build an emergency fund. There are times in our life where major expenses come up that we don’t have any control over. These could include your car breaking down, losing your job or being unable to work due to sickness. Your emergency fund should cover your basic expenses for a few months. An emergency fund also lets you have a peace of mind and a sense of security.

9. Earn some extra cash. Your day job needn’t be the only stream of income that you have. Why not learn how to earn extra money now. You can sell your used items online, start a side business or get a freelance job.

10. Be consistent with your financial habits. Saving and managing your money should be a continuous effort. You can tell your family and friends about your financial goals and how you plan to achieve them. You never know, you might also influence them!

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