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10 Habits to Develop Financial Stability

10 Habits to Develop Financial Stability

    Zen Habits has another excellent article about the importance of habits and goal setting to achieving success. This post lists the habits that will help you to become financially stable. Some of my favorites from the list are detailed below:

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    Make savings automagical. This should be your top priority, especially if you don’t have a solid emergency fund yet. Make it the first bill you pay each payday, by having a set amount automatically transferred from your checking account to your savings (try an online savings account). Don’t even think about this transaction — just make sure it happens, each and every payday.

    Invest in your future. If you’re young, you probably don’t think about retirement much. But it’s important. Even if you think you can always plan for retirement later, do it now. The growth of your investments over time will be amazing if you start in your 20s. Start by increasing your 401(k) to the maximum of your company’s match, if that’s available to you. After that, the best bet is probably a Roth IRA. Do a little research, but whatever you do, start now!

    Use the envelope system. This is a simple system to keep track of how much money you have for spending. Let’s say you set aside three amounts in your budget each payday — one for gas, one for groceries, one for eating out. Withdraw those amounts on payday, and put them in three separate envelopes. That way, you can easily track how much you have left for each of these expenses, and when you run out of money, you know it immediately. You don’t overspend in these categories. If you regularly run out too fast, you may need to rethink your budget.

    10 Habits to Develop for Financial Stability and Success – [Zen Habits]

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    Published on October 28, 2020

    13 Books on Money to Transform Your Finance Management

    13 Books on Money to Transform Your Finance Management

    One of the most obvious measures of our success is our wealth. That said, that statement alone can be taken in various directions. Some people think it’s a matter of how much wealth you have. We, on the other hand, believe that it’s more of how much you’re able to retain and manage from month to month and year to year.

    Below is a list of books on money that we believe will transform your way of thinking about money management in several ways. From sparking interesting conversations about it to making plans for your financial future, this list covers many aspects of finance management.

    How to Choose a Good Book on Money

    To help you find the best books on money to reach your personal finance goals, we’ve done the research for you and have formed this list of criteria.

    • Relevant – Even though money has been around for a long time, the economy has changed a lot over the years. We want to ensure you the books recommended are offering relevant advice that would be ideal in any financial environment.
    • Offers a system – Financial advice is great, but it doesn’t always stick. Each book should overall provide tips and habits that will allow you to build a system to help you manage your money.
    • Sparks conversations – Reading about money is one thing, but these books should also encourage you to talk more about money with those around you to some extent. Even though we all have our own ways of managing money, discussing money can have merits in some circumstances.
    • Practical – While these books provide general financial advice, they should remain practical in that the advice should be obtainable for people to achieve. Most people don’t have the funds necessary to start a real estate business, but they can put away a few hundred dollars into a savings or investment account every month. Practical books will help you achieve your goals.

    1. I Will Teach You to Be Rich

      As the title of the book suggests, this book delivers on a plan to be rich. The author, Ramit Sethi, has a background in personal finance and provides a detailed six-week plan for living out a “rich life.”

      This book on money covers a wide variety of aspects like using credit cards and maximizing rewards from them, opening a high-yield savings account, and automating accounts where you can save money with no effort from you at all. This book is filled with nothing but pure actions that are outlined and sectioned off in a good way.

      Buy “I Will Teach You to Be Rich” here.

      2. The Automatic Millionaire

        Another one of the great books on money that will help you build a system is The Automatic Millionaire. Written by David Bach, a financial writer, this book focuses on our ability to automate our finances and builds a system based on that.

        The idea with this book is to give you the knowledge and information to put together a system in an afternoon that will make a large impact on your financial future for the better.

        Buy “The Automatic Millionaire” here.

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        3. The Simple Path to Wealth

          The principles from this book on money were first presented by the author to his daughter through a series of letters. As such, you’d expect there to be plenty of actionable advice when it comes to investing and overall saving. Considering the direction of the book further, this book is light and has a casual tone to it. That said, it won’t shy away from complicated explanations. It’s one of the highest-rated personal finance books around and it’s clear why it is.

          Buy “The Simple Path to Wealth” here.

          4. Retire Before Mom and Dad

            This is a book for those who are looking to be involved in the FIRE movement. FIRE stands for Financially Independent, Retire Early, and it’s clear why many people are striving for this or considering it.

            This book delves into the principles and acts as a primer for this movement and going down this path. That said, it also considers other principles that make FIRE more attainable or easier to achieve, even if you’re not planning on retirement in the next few years.

            Buy “Retire Before Mom and Dad” here.

            5. When She Makes More

              Money is a topic that most people shy away from, and it makes sense. Money is a status thing and seeing someone making more can cause unease or resentment. Money can also strain relationships and overall cause harm. People fear talking about money and it’s those emotions that cause problems in the first place.

              This book on money is powerful as it provides opportunities for women to be talking to their partner about money. After all, stereotypically speaking, men are meant to be making more money than women and it’s a sore spot when it’s the reverse. This book is fantastic because the author, Farnoosh Torabi, lives a life where she is the one making more than her partner.

              Getting into details, this book looks at the realities and the various rules she’s set up with her partner. She also discusses ways to maximize earnings while minimizing conflict.

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              Buy “When She Makes More” here.

              6. Women & Money

                Suze Orman is a financial advisor who most notably ran a show called The Suze Orman Show from 2002 to 2015. In the show, she received calls from viewers who asked for financial advice and whether or not it’s a good idea to buy various items.

                Orman has years of experience working in this field and pools a lot of her knowledge into the various books she’s published. Women & Money is one of the more recent ones. This book in particular talks about how women earn, invest, and save while also giving practical advice on retirement, marriage, and other topics.

                Whether you are 20 years old or 60, this is a good choice if you’re looking to learn more.

                Buy “Women & Money” here.

                7. Think and Grow Rich

                  This famous book has been around for almost 90 years and still holds some relevant information. While this book on money won’t tell you about 401Ks and building a portfolio, it takes a turn to the mindset of building wealth.

                  Through this book, you’ll learn more about desire and persistence as opposed to strategy or money management. While this is an odd book on our list, we believe it’s still important as the stories and the lessons are still relevant to your money attitude today.

                  Buy “Think and Grow Rich” here.

                  8. You Are a Badass at Making Money

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                    As you can guess from this title, this book takes a lighthearted angle to personal finance. Similar to “Think and Grow Rich,” this book also focuses on the mindset of earning and keeping money.

                    While this book lacks any sort of actionable financial advice, it’s compensated by the fact it’s inspiring. It’s an ideal book if you’re looking for a new perspective to making money and could spark conversation with friends, family, or your partner. On top of that, it’s a nice motivational booster.

                    Buy “You Are a Badass at Making Money” here.

                    9. The Millionaire Next Door

                      Another inspirational focused book that you’ll want to pick up is “The Millionaire Next Door.” Many years ago, Thomas J Stanley, Ph.D. and William D. Danko, Ph.D. did extensive research into the millionaires of America. From the various interviews they’ve conducted, they created a profile of America’s wealthiest citizens and discovered common connections amongst them all.

                      Stanley wrote it all in this book that has garnered over 1,700 five-star reviews and provides tremendous insight into what it’s like to be a millionaire. This is all explained through seven habits that all of these individuals have in common.

                      Again, there’s not so much practical advice here, but it prompts you to take a closer look at their overall lives and what you can do to change yours to be like theirs. Even if you’re not planning to be a millionaire, the lessons in there are all practical such as living below your means and rejecting traditional consumerism.

                      Buy “The Millionaire Next Door” here.

                      10. Spend Well, Live Rich

                        For those looking for a good book for budgeting and personal finance for beginners, this is a good pick. Author Michelle Singletary reflects on her life with her grandmother who raised five children on a modest salary.

                        By watching her grandmother, Singletary devised principles that her grandmother used to support that kind of lifestyle with what money she had. Through those principles, you can find inspiration in her story while learning about how to stretch the money that you already have.

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                        Buy “Spend Well, Live Rich” here.

                        11. Your Money or Your Life

                          The core of this book is financial independence and lays out a plan to reach that goal. While this book is the longest in this list, it does provide advice on pretty much every aspect of financial independence you can think of. It covers things like mindset requirements as well as investment moves that you should be making. Even if your plan isn’t to retire early, there is plenty of advice in this book you can use.

                          Buy “Your Money or Your Life” here.

                          12. Broke Millennial

                            Amongst millennials, this book on money is a favorite for its simple and relatable language. It touches on a lot of the struggles and issues that millennials are faced off with today—things like living with your parents in your 20s, dealing with student debt, and even dealing with friendships and your finances.

                            Between all of this, the book does offer plenty of practical advice and things to consider for those within this age group. It covers a broad overview of checking your credit score to even buying your first home. Even if you’re not there, chances are likely that the information mentioned in this book will be relevant for quite some time.

                            Buy “Broke Millennial” here.

                            13. Get a Financial Life

                              Another millennial-focused book is “Get a Financial Life,” which covers a lot of the basics for personal finance. This book is more direct with its advice since it covers things like doing your own taxes and paying off debt. The goal of this book is to provide a foundation for you to establish a financial life and it does so in a good and clear manner.

                              Buy “Get a Financial Life” here.

                              Final Thoughts

                              What a lot of these books teach us about money is that success doesn’t come overnight. It’s something that takes a while to build up. But it also shows just how changing your way of thinking or taking a few small steps can mean changing your financial path for the better. There are many great books on money, and these are only the start.

                              More Books on Money and Finance

                              Featured photo credit: Jonathan Borba via unsplash.com

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