Follow These 10 Money Habits to Become Rich

Follow These 10 Money Habits to Become Rich

No matter the state of your finances now, you have a fair chance of becoming rich this year if only you practice smart money habits. Building wealth is about paying attention to money and growing it like a healthy plant. Start your successful journey by following the 10 tips below.

1. Maintain a sustainable lifestyle.

Being too frugal is not good. If you constantly deprive yourself, you will break and fall into overspending eventually. It is better to maintain a sustainable lifestyle where you invest in things you value and eliminate unnecessary spending daily.

2. Budget.

Check out different budgeting methods and practice what comes most intuitive to you. Even the most basic types can be super effective.

3. Only use your credit card for purchases that you can pay off at the end of the month.

Never spend money that you do not have. This is the fastest way to a debt hole. If you are not sure about this, pay your credit card weekly, or even daily, just to keep yourself in check. If your financial habits have yet to mature, it is best to switch to a debit card, or just use cash.

4. Skip impulse purchases.

Give yourself time to think about purchases. If you like something, think about it for a week. If you still want it after, get it if you have the savings for it.

5. Spending money and having fun are different things.

The list of free ways to have fun is long and endless. You do not always have to spend money on it.

6. Save for your wants.

If you want to buy something, save up for it in advance. Do not sacrifice your budget for the essentials to get the non-essential.

7. Be honest.

Most marriages that end in divorce are due to financial problems. Never spend money behind your spouse’s back. Ultimately, this is not about the money but the broken trust.

8. Invest in low-fee index funds.

Fees that go unnoticed waste your money. Choose low-fee index funds and watch investment fees closely.

9. Don’t trust third parties to make good decisions for you.

Your insurance agent or stockbroker make money off you. They can offer you guidance, but you are the master of your financial destiny. Do not blindly rely on others and make your own decisions.

10. Save your pay raise.

Resist the urge to inflate your lifestyle in case a raise comes in. Put your raise towards savings or investments and help yourself become richer faster.

Ian Schindler