5 Habits of Financially Successful Individuals
There are always a few people who seem to have their money habits more together than most. Even if you’re doing pretty well with your financial management, and don’t need the services of companies like Debt Rescue, there are still a few money management strategies you could probably tweak. The following five habits of financially successful individuals makes a handy checklist. Are you doing any, all, or none of the below?
They Have – And Follow – A Budget
There are no records of any financially successful individuals managing to achieve financial success, and remain there, without a budget. And not just any budget; one that includes a disciplined approach to savings and expenses and, of course, the perseverance to stick to that budget, come what may. A budget is no good to anyone if it isn’t followed, and self-discipline is the key.
Financially successful individuals make a point of growing and developing their own financial education. Wealth creation is rarely – if ever – a matter of pure luck. Those who succeed financially take an interest in their own money matters, and invest time and often other resources in learning how they can get the best out of their financial assets be they cash, real estate, shares, Superannuation, or business.
They Set Achievable Financial Goals
Knowing what you want to do with your money at any given time is a great motivator. If you don’t have any clear, achievable financial goals in place, and you aren’t generating any momentum towards achieving anything financially, it’s easy to fritter money away without focusing on what you’re actually doing.
They Are Realistic About Debt
Financially successful people learn to understand debt and its function as part of an overall savings plan. They are neither afraid of it, nor do they go out of their way to incur debt unnecessarily. For large investments such as purchasing property or businesses, carrying debt is common and purposeful. Using debt to fund non-investments like holidays and new cars is a more questionable money habit, and not one that financially successful individuals embrace.
They Think Over Risk
Financially successful people tend to do their homework thoroughly. Completing due diligence can be as simple as shopping around for a better deal on car insurance, or as complex as perusing council DA plans for a new property deal. Financially successful people take the time to assess the pros and cons of money matters in their life.
Financial success is no fluke. Those who manage to become financially successful do so because they put in the work. They invest, so to speak, in their own financial future. They educate themselves and do their homework. They learn what questions to ask and what pitfalls and trapdoors to watch out for – and most importantly, they have a framework within which they operate. They have a plan for their financial future, and a path to making their dreams of wealth creation a reality.
Do you have a favourite financially successful money habit you’d like others to know about? Share your insights in the comments box below.