10 Good Money Habits to Help You Fight for Financial Freedom
Date: July 6, 2017
As a nation, we just celebrated our independence. When you were watching fireworks and thinking about all of the freedoms that you enjoy, did financial freedom make your list? It’s something that many renters and homeowners have in common… a longing for financial independence. But, achieving that financial freedom can be a hard-fought battle.
Here are 10 habits that can help you reach financial freedom. They may even make you rich!
1. Get familiar with your finances. This is the same advice we give to potential home buyers who are trying to save money for a down payment. When it comes to your money, you’ve got to know what is coming in and what is going out. Scour your pay checks and bank statements to see what you’re earning and what you’re spending.
2. Change your thinking. When you get extra money, do you think of it as more money you can spend or more that you can save? If you want to find financial freedom, start thinking about your money’s saving potential and stop thinking about that new pair of shoes you want to buy!
3. Set specific goals. Maybe you would like to be out of debt in three years; maybe you would like to buy a home; maybe you are trying to plan a family vacation. They’re all good financial goals and you are much more likely to achieve a goal once it is set.
4. Follow your own rules. It is easy to set a limit on your grocery spending, but when you’re strolling through the store throwing item after item into your cart, it is nearly impossible to stick to your limits. Instead of setting a financial limit on your grocery spending, make an effort to never get a cart when you go to the store. The point? Do what works for you when it comes to financial rules!
5. Make the easy cuts. Just like it is OK to follow your own financial rules, it also is OK to make a few cuts here and there. You know, like your lunches out every day of the week or twice-a-day coffee runs. You’ve got to make a few sacrifices for your financial sake!
6. Put some money away each time you’re paid. Even if you feel like you’re only able to contribute $20 each pay, force yourself to sock away some money each and every time you’re paid. It’s a good financial habit to start and keep!
7. Save for retirement. Not only should you be socking away a portion of your pay each time you’re paid, but you also should be making regular contributions to your retirement. With employee match programs, there is really no reason to prolong your retirement savings.
8. Automate everything you can. You already know you should be paying off bills, creating savings and socking away money for your retirement. Here’s a hint. It will be a lot easier to do all three if you automate those activities! You’ll never forget to pay your bills, you’ll ensure you’re saving and you’ll be setting yourself up for a good retirement!
9. Get professional help. If you find yourself struggling to meet your financial goals, enlist the help of a financial planner. Having someone knowledgeable hold you accountable will help you to reach financial freedom a lot faster!
10. Believe in your own worth! Now that you’re armed with some tips for getting on the right financial track, believe that your financial freedom is worth fighting for! When it comes to your personal financial independence, you’re worth every single penny.