As the old adage goes, old habits die hard. I feel like old money habits die even harder! It’s easy to continue to do the same thing, and expect different results… even though if we’re honest with ourselves, those results never come. Making changes helps those results to come though!
If you’ve made it to this page, that means you’re eager to figure out how to improve on your money habits. That’s a hard pill to swallow, so congrats and thank you for being here. The most difficult part is accepting that habits need to change. Now that the door is open to changing old habits, it’s go time!
Let’s talk about money habits that will make you rich! Not only did these money habits allow me to pay off $67,000 in debt, they also helped me build wealth. Now it’s time for you to build wealth using those same habits. Let’s go!
17 Money habits to make you rich
1. Create a budget
The number one habit you should do is to create a budget that you can stick to. It needs to be realistic so be completely honest with yourself. Without budget, everything else will crumble, especially if you’re living paycheck to paycheck.
2. Control your money
One thing that is essential to turning your money habits around is controlling where your money goes. Going out to eat, or straying from where you’ve budgeted your money is where failures happen. By going through and being strict about where you put your money, you’ll realize how much you have left over, and also help you pay off debt.
3. Have money to fall back on
Emergencies happen, and sometimes they’re costly. Having an emergency fund to fall back on will help you be wealthy in the long run. I’ve heard of so many people spiraling out of control because of an emergency. Having money to fall back on is incredibly important to maintaining control of your money.
4. Create goals
Long term and short term goals are game changers for your money habits because they keep you on track. Again, this is all about control and having those goals helps you stay in control. The finish line to each of your long term or short terms goals is sweet too, so you can celebrate milestones as well as give yourself some much deserved gratification.
5. Keep a pulse on expenses
Much like budgeting, a way to keep on track with your money is to keep a pulse on expenses. What is outgoing is what impacts your bottom line on how much money you have left over, so keeping track of that is seriously so important.
Related article: 21 Life Changing Frugal Ideas
6. Live below your means
In order to build wealth, you cut any expenses that can be snipped out of your life. Things like subscription services or some autopay expenses you don’t need can dig holes in your expenses. Always be sure to earn more than you spend. If you’re spending more than you earn, start making some budget cuts and take a hard look in the mirror.
7. Off brand means more
One way to really elevate your money habits in a positive way is to buy more off brand items. I know there are some items that need to be on brand, but honestly usually you’re paying more just for the brand name. There are so much options out there. Do your research on what off brand items you can buy that will still leave you happy.
8. Think on it
Impulse buys are the worst for your budget. Think on your purchases and take time, especially if it’s a big toll on your money and expenses. If you’re going outside of your regular monthly expenses, then take a minute to think about whether or not you actually want or need whatever you’re looking at getting. Remember, this is a sacrifice, either on what you want/need, or on your wallet. Protect what needs to be protected.
9. Save for retirement
Much like saving for an emergency fund, saving for retirement sets you up for the future. It also allows you to control where those finances go. See? This is all related and intertwined. Pulling money out of your monthly budget to save for your future is monumental in just creating a fantastic money habit that sets you up to be rich all throughout your life.
10. Don’t borrow money
It doesn’t matter if you’re borrowing from a bank or from a family member, just don’t do it. Great money habits stem from not having to borrow money, or at least doing everything you can to not borrow money.
11. If you do borrow money, pay off more than you owe
Sometimes it’s easier said than done to not borrow money. If you do, pay off more than you owe. It’s incredibly important for your financial and personal wellbeing to not owe anyone anything. In the case of a house or bigger purchase, that might not be as realistic. But no matter what, pay off more than your minimum monthly payment. The interest it will save you in the long run is HUGE and will make you wealthy!
12. Protect your money
So many times, a budget is made and then last minute plans ruin that. Back in the day, I was invited to last minute brunches that had me looking at my bank account and the menu to determine what I could eat. The better feeling is when you’re invited to a function and you can be excited about it, without the fear of ruining your finances.
13. Ditch debt
Oh my goodness. Paying off debt is so important! Debt means that you’re paying interest on whatever you bought. No way. Ditch it! Pay it off as fast as possible and you’ll see exactly how much money you have after you’ve paid all of your expenses.
Related Articles: Top 5 Get Out of Debt Tips
14. Downsize
Downsizing is a lot like cutting expenses, but it’s bigger than that. These are the bigger purchases that you need to be aware of. Let’s say you bought a car that is out of your budget, or a house that’s a little too big or the mortgage or rent is too much to handle. Really take a hard look at those expenses and see if you can downsize.
15. Invest
Much like the point in investing in your retirement, invest in other facets is also just as important. Investing is more than just stocks and bonds. It’s also about investing in yourself as well. If there’s a class or certification you can take to build your finances to be better, take them! Investing in yourself can pay dividends in the future.
16. Take on more responsibility
Whether you’ve been looking at doing other things for yourself (like starting your own company) or you’re wanting a raise at work, taking on that responsibility will pay off. Ask your boss if there’s anything more you can do for them, or find ways to take on more.
17. If you want it, ask for it!
One of the biggest lessons I’ve learned is to ask for more money if you feel you’ve earned it. Don’t let money sit on the table. If you ask your employer for more money and they say no, your biggest raise is usually when you go and work elsewhere. Apply for jobs and really give yourself a shot!
Conclusion
Adopting these money habits is a sure fire way to elevate your expenses. Habits take time to form, so don’t put too much pressure on yourself. Slowly but surely you’re on your way to success. Just don’t give up!