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10 Things Financially Happy People Do Differently

10 Things Financially Happy People Do Differently

Face it–money is one of the biggest sources of stress in most people’s lives. You can’t live without it, but worrying about it all the time can make you go crazy! Here are ten things financially happy people do differently. Read up and follow their lead so you can be financially happy, too.

1. They take steps to reach their goals.

Financially happy people realize you don’t have to accomplish everything all at once. So you can’t buy a car with cash–why not start saving up for a used one? Break every financial goal you have into steps, and you’ll see how easy it actually is to achieve.

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2. They don’t obsess over their bank balances.

Money makes you crazy because you can’t stop thinking about it. It’s understandable, when living paycheck to paycheck, to worry about how much money you have to live on. But obsessing won’t change the number on that bank statement. Financially happy people, whether they have money or not, don’t obsess over their bank balances. They push it to the back of their minds and focus on other things, like making said money, to keep from stressing themselves out over something they can’t easily change.

3. They spend within a budget.

Financially happy people know how much they make each month, and they know how much they have to spend. They allot enough money to pay their necessary bills, and make sure to not overspending whatever is leftover.

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4. They pay off credit balances to maintain good credit.

Financially happy people don’t have debt hanging over their heads. They pay down credit card bills every month to keep their credit scores up. Good credit scores that, by the way, will help them achieve more of those financial goals mentioned in step one.

5. They plan for financial misfortune.

No one wants it to happen, no one expects it to happen, but misfortunes will come your way. It might be a car accident, it might be a tree damaging your roof, or it might be getting laid off from your job. It’s going to be scary and will put you in a bad place, financially. But financially happy people worry about these troubles a little less. They’ve planned ahead for such misfortunes, and have at least six months of money in savings to live off of, in case they’re unable to work or need to make an unexpected major purchase.

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    6. They don’t buy impulsively.

    Shopping sprees might make you feel better when you’re down, but they’re not necessary. Financially happy people don’t buy impulsively. They don’t go out and buy three new pairs of shoes–they buy one, and only when they need them. This doesn’t mean they’re frugal or cheap, they just don’t make impulse purchases, which is usually when you pay more for something that’s worth less, just because you want it right then.

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    7. They find satisfaction with what they have.

    Another reason financially happy people don’t buy impulsively is because they’re happy with what they have. They don’t want to own the latest and greatest in technology, and they don’t need a closet overflowing with clothes. They realize those things aren’t as important as financial stability, so they curb the desire to spend money on such things.

    8. They’re smart borrowers.

    Financially stable people research all options before taking out a loan. This way, they’re not stuck paying an insanely high interest rate for the next twenty years. They make sure they understand all terms and shop around to get the loan that fits exactly what they need, and they don’t take on a payment that’s more than they can afford.

    9. They don’t avoid retirement planning.

    When you’re in your twenties, retirement planning sounds crazy. It’s so far in the future that you can’t imagine needing it. Or maybe you think that it’s better to have access to that money now, instead of putting it away for forty years down the line. Financially happy people see it differently. They realize that this money is an investment, and it’s going to pay off when they need it most.

    10. They don’t give up.

    Don’t let money get you down. Anything is possible if you work for it. Financially happy people don’t see their bank balance and give up all their saving, goal-making, and retirement planning. They don’t go out and blow whatever money they have left, or start taking out loans from fly-by-night companies. They don’t get depressed, and they don’t give up. It’s always possible to turn over a new leaf and start saving your money and spending it smartly.

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    Published on September 17, 2018

    How Being Smart With Your Money Leads to Financial Success

    How Being Smart With Your Money Leads to Financial Success

    Achieving financial success is not something that just happens. Maybe if you win the lottery or something, but for the average person like you or me, it comes from a series of small steps you take over a long period of time.

    With each step, you form a new smart money habit. And with each smart money habit, you build towards financial independence.

    So what sort of habits can you form to get on that path? Let’s take a look at smart money habits you can start today to get you closer to a financially independent future.

    1. Avoid being “penny wise but pound foolish”

    It’s tempting to try saving a couple cents here and there when buying small items. However, that’s not where the real money is saved. You’re putting in extra effort for something that doesn’t move the needle.

    You get the most bang when you’re able to cut down on your bigger bills. For example, finding a lower interest rate for your mortgage could save you $50+ per month. And cutting your transportation bill by purchasing a cheaper car or taking public transportation can provide large gains as well.

    So, look at your recurring expenses such as housing, transportation, and insurance, and see where there’s wiggle room. It’s a much better use of your time than trying to pinch pennies here and there on smaller purchases.

    2. When you want something big, wait

    Impulsivity can get you in trouble in most aspects of life. Finances are no different.

    It’s human nature to see something and want it right then and there. It starts as a kid in the checkout line at the grocery store, and it continues on through adulthood.

    We get an idea in our head of something we want, and it’s hard not to go out and get it right then.

    A good example is wanting a new car. Perhaps you’ve had your car for several years. It’s crossed the 100k mile mark. Maybe maintenance is due, and you’re annoyed that you need to replace the timing belt or purchase new tires.

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    So, you get the itch.

    You start digging around online, and you realize you could trade in your current car for something newer and more exciting… all for a few hundred bucks a month. Then you get obsessed.

    Here’s where you have to take a step back.

    Your newfound obsession is clouding your judgement. Rather than giving into the impulse, wait it out.

    Set a timeframe for yourself. Maybe you come back to the decision three months down the road. See if the obsession lasts.

    It might, but often, a funny thing happens. Often, you forget about it. And often, you find that the new car wasn’t a need at all.

    The impulse faded. And you just saved yourself a ton of money.

    3. Live smaller than you can afford

    You finally get that big raise. And you want to celebrate – and why not?

    You’ve been looking forward to this forever. And after all, it was all due to your hard work.

    That’s fine, splurge a little. However, make it a one-time deal and be done.

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    Don’t get caught in the trap that just because you’re now making more money, you should spend more.

    Too often, people get more money and feel like they that gives them the means to buy a bigger house, a bigger car… you know the drill. Resist.

    The fact is that living smaller than what you can afford is one of the fastest ways to build savings.

    But if you constantly upgrade as you begin to make more, then you’ll never get ahead. You’ll just build up more debt along the way and have just as little wiggle room as before.

    4. Practice smart grocery shopping

    Food… it’s one of the biggest portions of any budget. And if you’re not careful, it can be one of the biggest drains on your wallet.

    But luckily, there are a few things you can do to ensure that you stay smart with your money when buying groceries.

    Create a grocery budget

    Set a strict weekly grocery budget. When you know how much you can spend on groceries, you can then plan your weekly menu around it.

    Once you know what all you need, you can go shopping and keep a running tally as you shop to ensure you’re on track.

    I tend to do this in my head, rounding for each item. However, writing it down as you go would probably work best for most people.

    Make a list… and never deviate

    Never go to the grocery store without a list. If you go to the store with a ballpark idea in mind, you don’t have a true ide of what you need.

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    You’re not well-researched. You don’t know what the sales are. As a result, you’re going to make decisions on the fly.

    These impulse decisions will lead to overspending, which will derail your grocery budget.

    Eat before going grocery shopping

    It’s also important to eat prior to going to the grocery store. Hunger is a powerful force.

    If you’re shopping on an empty stomach, everything is going to look good. In particular, you may find a lot of ready-made, processed snacks will look enticing.

    After all, you’re hungry now and that food is easily available. So subconsciously, you may lean towards those items.

    Unfortunately, not only are those items typically less healthy, but they’re likely more expensive. You pay for convenience.

    However, when you eat prior to shopping, then you’ll shop with a clear mind. Your hunger won’t cloud your judgement, influencing you to make poor decisions like a cartoon devil resting on your shoulder whispering in your ear.

    This makes it much easier to stick to your grocery plan.

    5. Cancel your gym membership

    Now that you’re all set on your food, it’s time to get smart about managing your budget in terms of physical fitness. And let’s begin by avoiding the gym. The gym bill, that is.

    The average gym membership costs around $60 per month. That’s $720 a year.

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    Yet, two out of three gym memberships go unused. That means two-thirds of people who have a gym membership are literally giving away almost a thousand bucks a year. It’s crazy!

    I recommend seeking an alternative. One good alternative is to look into fitness streaming services.

    Streaming services allow you to stream hundreds of workouts like Insanity and p90x, right in your own home for around $10-20 a month. That’s $40-50 less a month than the average gym membership.

    Of course, then there’s the free option. The internet is full of free workouts that you can do on your own with minimal or no equipment.

    For example, there’s the Couch to 5K program, that I personally used a decade ago to ease myself from couch potato to running my first 5K race. If I could do it, anyone could.

    Then there are free resources like reddit that have limitless information on workouts. The Fitness subreddit has done all the research for you, populating workout tips and detailed workout routines for anyone to use in their wiki.

    There are several routines that require no equipment. And you can join in on the subreddit to become part of the community, making it easier for those seeking comraderie and encouragement in their fitness goals. All for free.

    It’s baby steps… And baby steps can start now!

    I’ve never met anyone that can’t stand to be a bit smarter with their money. And on the flip side, anyone can get smarter with their money. But remember, it doesn’t happen all at once.

    Begin by fighting your impulses. Prepare for the week and be smart at the store. And cut monthly expenses like gym memberships that are overpriced and you probably aren’t getting your money’s worth out of anyway.

    The devil is in the details. And the details can change your lifestyle and prep you for a financially independent future.

    Featured photo credit: Unsplash via unsplash.com

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