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7 Financial Habits That Make You Smarter With Your Money

7 Financial Habits That Make You Smarter With Your Money

Being informed financially is an essential factor for building wealth. Most of the time the wealthy maintain solid financial and money habits that help them sustain their wealth. While there are sites like Creditloan that could offer solid financial advice and resources to be smarter with your money, this article will look at some money habits that can help you build your wealth.

Here are 7 financial habits that will make you smarter with your money.

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1. Be clear and specific

If you want to be smarter with your money, you have to know what you want to accomplish with it. Your financial goals should be written down and well articulated. Know what your annual income and net worth are. You can use this knowledge to set big goals in your business and personal life.

2. Invest

You will have spare change that could either be spent or invested. You can only build wealth by investing and you should make this a habit. You don’t need a lot of money to get started. Simply be willing to research and learn about the advantages of smart investments and how to begin. Take advantage of the money compounding opportunities available and invest that extra cash.

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3. Learn to save

Learn to save whatever dollars you can. You don’t have to save big at first. But saving is a habit that can be nurtured. When you are making a lot of money, your lifestyle could dull your senses about the need to save. However, if you can start seeing every extra penny you earn as a tool to paying off your students loans, personal loans, having an emergency fund, or investment account you’ll understand how effective saving can be for you in the long run. It’s better than the short term gains of spending your money now.

4. Automate your finances

Having your finances run on autopilot is a smart money move. Your money should automatically go to savings accounts, investment accounts, and to your creditors. This way you can effortlessly have financial security. Moreover, you are not consumed with paying your dues when you are meant to be working or spending time with people you care about.

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Payment processing tools like MoonClerk and Due will make sure your money is on autopilot. This way you won’t forget a payment and you’ll have a good solution for automating your extra cash flow.

5. Read finance books

Perhaps this is the one thing the wealthy have over the have-nots. They read. Nobody could have more financial wisdom than you, that’s if you put your heart and mind into growing your stash.

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It goes beyond whatever formal education you may have. You have to learn to teach and invest in yourself. In this way, you educate yourself about how to become wealthier.

6. Surround yourself with the right people

You can’t negate the power of surrounding yourself with people who can support you with financial advice and knowledge. Successful people who are high earners have the capacity to expand your thinking and boost your income. Most of the time we become like the people we surround ourselves with. You certainly would improve your financial habits when you’re surrounded by people who are smart with their money.

7. Know how much you spend

You can’t be smart with your money when you do not know how much you are spending or giving away. If you want to be sure about how much you can potentially put away, you have to track your daily expenses. There are apps like Mint and Level Money that can help you understand how much you are giving out and how much is coming in.

Featured photo credit: https://morguefile.com via morguefile.com

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Casey Imafidon

Specialized in motivation and personal growth, providing advice to make readers fulfilled and spurred on to achieve all that they desire in life.

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Last Updated on January 21, 2020

How to Develop a Millionaire Mindset in 6 Simple Steps

How to Develop a Millionaire Mindset in 6 Simple Steps

We all like to dream about being financially wealthy. For most people though, it remains a dream and nothing more. Why is that?

It’s because most people don’t set their mind to achieving that goal. They might not be happy in their current situation but they’re comfortable – and comfort is one of the biggest enemies of growth.

How do you go about developing that millionaire mindset? By following these simple steps:

1. Focus On What You Want – And Take It!

So many people are too timid to admit they want something and go for it. When there is something that you want to accomplish don’t think “I could never actually do that”, think “I could do that and I WILL do that”.

Millionaires play to win, not to avoid defeat.

This doesn’t mean to have to become a selfish jerk. What it means is becoming more assertive and honest with yourself. You don’t have to grab off other people. There is a big pot of unclaimed gold in the middle of the table — why shouldn’t you be the one to claim it? You deserve it!

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2. Become Goal-Orientated

It’s almost impossible to achieve anything if you don’t set firm goals. Only lottery winners become millionaires overnight. By setting yourself attainable goals, you will get there eventually. Don’t try to get rich quickly — get rich slowly.

Let’s take the idea of making your first million dollars and expand on what kind of goals you might set to get there. Let’s also say you’re starting at a break-even position – you’re making enough to get by with a few luxuries, but nothing more.

Your goal for the first year can be having $10,000 in the bank within a year. It won’t be easy but it is doable. Next, you need to figure out the steps you need to take to achieve that goal.

Always look at ways to make growth before cutbacks. With that in mind, you might want to see if you can negotiate a pay rise with your boss, or if there’s another job out there that will pay better. You might be comfortable in your old job but remember, comfort stunts growth.

You may also have other skills outside of your workplace that you can monetize to boost your bank balance. Maybe you can design websites for people, at a fee of course, or make alterations to clothes.

If this is still not enough to make the money you need to save $10,000 in a year, then it’s time to look at cutbacks. Do you have a bunch of old junk that someone else might love? Sell it! Do you really need to spend $10 on your lunch everyday when you could make your own for a fraction of the cost?

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If you are to become a millionaire, you need to start accumulating money.

Here’re some tips to help you: How to Become Goal Oriented and Achieve More in Life

3. Don’t Spend Your Money – Invest It

The reason you need to accumulate money is for step three. Millionaires tend to be frugal people, and that’s because they know the true value of money is in investing. Being your own boss goes hand-in-hand with becoming a millionaire. You’ll want to quit your regular job at some point.

Stop working for your money and make your money work for you.

Rather than buying yourself a new iPad, that $500 could be used to invest in the stock market. Find the right shares (more on that later), and that money could easily double within a year.

There’s not just the stock market — there’s also property, and your own education.

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4. Never Stop Learning

The best thing you can invest in is yourself.

Once most people leave the education system, they think their learning days are over. Well theirs might be, but yours shouldn’t be. Successful people continually learn and adapt.

Billionaire Warren Buffet estimates that he read at least 100 books on investing before he turned twenty. Most people never read another book after they’ve left school. Who would you rather be?

Learn everything you can about how economics works, how the stocks markets work, how they trend.

Learn new skills. If you have an interest in it, learn everything you can about it. You’d be surprised at how often, seemingly useless skills, can become extremely useful in the right situation.

Start developing the habit of learning continuously: How to Create a Habit of Continuous Learning for a Better You

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5. Think Big

While I advise to start off with small goals, you absolutely should have a big goal in mind. If you have a business idea, then that is your ultimate goal – to start that business and make a success of it. If you want to invest your way to millions of dollars and do little work other than research, then that is your big goal.

There is no shame in not achieving a big goal. If you run a business and aim to make $1 million profit in a year and “only” make $200,000, then you’re still significantly ahead of most people.

Aim for the stars, if you fail you’ll still be over the moon.

6. Enjoy the Attention

To be successful, you have to be willing to promote yourself and enjoy the attention to a certain extent. Now the attention doesn’t need to be on yourself, it could be on your brand, but attention definitely attracts money.

Never be embarrassed to get your name out there. That means finding a spotlight and being brave enough to step right up underneath it.

If you run a business, try contacting the local papers. You’d be surprised at how amenable they often are to running a story about you and your business, and it’s all free publicity.

Above all, remember: You control your own destiny. Push hard enough for anything and you’ll get it.

More About Thinking Smart

Featured photo credit: Austin Distel via unsplash.com

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