Have you set healthy financial goals for 2018? Great!
Is becoming wealthy one of your goals?
It’s never too late to start building your wealth. 2018 is right around the corner, but there’s still plenty of time left to tie up all the loose ends of your finances.
Let’s take a look at six healthy financial habits you’ll need in order to accumulate wealth the right way. Feel free to include them in your financial resolutions for 2018.
1. Spend less than you earn
This is the first and most important financial habit you can develop.
Why? Dysfunctional spending habits are your worst enemies if you want to become wealthy.
Wondering how everyday habits can build up or tear down your wealth? I go more in depth about it in this article.
2. Keep a record of all your expenses
It’s important to have a visual report of all your financial activity.
This will discourage impulsive spending habits and save you a buck or two (or more) each month. In finance, a little goes a long way, especially when it comes to savings.
You can track your financial activity with the help of one of these great apps or you can always go the for the good-old-fashioned way of putting pen to paper.
Feel free to choose whichever method works best for you.
3. Prioritise paying off your debts
Most of us have our own share of debts, whether it’s student loans, mortgage or car payments.
Make paying off your debts a priority! As soon as you’re done with your debts, you can start planning your wealth.
Very important! Once you’re on the marvellous path of financial freedom, avoid getting back into debts unless necessary.
4. Save as much as you can, starting as early as you can
Setting a specific goal such as saving for a new car, a new house or for your retirement can help you stay focused on your finances.
Start saving as early in life as you can. Don’t fool yourself into thinking, “Oh, I’m too young to be putting money aside for my retirement”. You’re not, the earlier you can start saving a few bucks, the better.
When you are young, you can get away with saving a little at a time. But later in life, you’re going to have to save a lot more within a shorter time frame for a decent retirement.
5. Look for long-term investments when you’re young
This habit goes hand-in-hand with the one we’ve just discussed. The earlier you start investing your money, the more time it has to grow.
Not sure what you should be investing in? Here are some ideas that can get you started:
- Emergency fund
- Early retirement fund
- Health and/or life insurance premiums
- Real estate
You might also be interested in: What Is Your Share Investment Style?
6. Find your passion and turn it into your career
Do you know you spend about one-third of your life at work? For the sake of your wellbeing, find a career you’re passionate about.
But what if you need a side-gig for some additional income in order to achieve all your financial goals? That’s ok. Out of all your side-gigs, find at least one that you love.
Whether you have a day-job/career/your own business, make sure you find the right motivation to keep you productive. Opt for having multiple sources of income and learn to love at least one of them.
7. Live like a frugal millionaire
Millionaires: extravagant spending habits, high-end fashion brands, limousines and aesthetic surgeries…
Learn the difference between extravagant vs frugal millionaires and a few other important healthy financial habits in this article.
Have the courage to ask for help
Sometimes, all your financial situation needs is an impartial third party opinion.
A financial expert can easily give you a helping hand when you’re too emotionally wrapped up in your own financial mess. Think of them as a couple’s therapist ready to fix the relationship between you and your finances.
Does it make sense?
At Shuriken Consulting you can pick and choose from an entire team of experts that can assist and help you sort out your financial situation. Let’s get in touch!