Good money habits for 2019
As you start thinking about your goals for 2019, I would like to recommend adding "cultivating good money habits" to your list. On our continuous quest to become financially independent and grow our wealth, we need to learn and practice money habits that support our mission.
This blog post continues the Her Finances series. Explore ten simple good money habits and how you can start making them yours today. While you read, select a few habits and write down how you plan to make them happen in 2019.
#1: Live within your means
This is an essential financial habit that you need. If you pick only one from the list, let it be this one. Your journey to financial independence starts with respect for your money and making wise money decisions.
How:
Set your financial boundaries and live within them.
#2: Know your financial status
Knowledge is power when it comes to your financial situation. It is essential to know where you stand financially. Sometimes it seems more comfortable not to know. However, if you want to see the positive change, you need to get comfortable with knowing your real financial status.
How:
Take stock of where you are today and review how you are doing financially on a monthly basis.
#3: Talk about money
Being open about your financial status and challenges is very crucial to take charge of your finances. We have been trained to treat finances like a taboo topic, and this is hindering our financial growth and freedom. Sharing money experiences and learnings with your trusted friends and family unlocks many benefits.
How:
Share your real financial status and be open to learning from others.
#4: Have a financial plan
Until a few years ago, I never really understood what a financial plan was. Having a plan for what I wanted to do with my money and how my money will work for me was a very foreign concept. Writing down the things you want to be able to do like get out of debt, buy a house, retire comfortably, save or pay for education provides you with a clear view of what you are working towards financially.
How:
Write down some of the things you want to be able to do financially and start working towards them.
#5: Find ways to save money
As part of your monthly budget reviews look for areas where you could potentially be saving a little more money. I am living proof that saving money can be more fun than spending money. Watching your savings grow can be very rewarding.
How:
Set money apart on a monthly basis and look for new ways to save.
#6: Get expert help
You don't have to go through your financial challenges and growth alone. There are professionals out there who can provide guidance and share knowledge on how you can achieve your financial goals more efficiently.
How:
Look for financial consultants at your banks or other financial institutions. There are free or low cost services available.
#7: Grow your money
Looking for ways to increase your current income, create new income streams or invest your money should also be on your list. Building wealth is one area we need to explore more on our financial journey.
How:
Seek out ways to grow your income like ask for a raise at work, start a side hustle or invest your money.
#8: Be financially literate
Yes, we need to be financially literate. There are so many things to learn about finances. Be on a mission to learn about different aspects of money. Somehow we are willing to bridge our knowledge gaps on almost every other topic, but we neglect our financial literacy.
How:
Take courses, watch good financial videos, read financial blogs, listen to personal finance podcasts.
#9: Surround yourself with "good money" people
Being in an environment of people who save and are responsible with their money is a great way to stay on track. Surrounding yourself with this group of people will offer you great learning opportunities and experiences that help you achieve your money goals.
How:
Find friends and acquaintances that make great money choices.
#10: Invest in yourself
Prioritize investing in opportunities that will help you get to the next level on your journey. Your personal growth is the best investment opportunity that will bring you the most return. We need to invest more in ourselves to get the results we want.
How:
Invest in learning and personal development.
Final Thoughts
As you start thinking about your goals for 2019, include some financial goals as well.
Building a solid financial foundation will free up time for you to focus on bigger goals.
You too can become financially independent - take the necessary steps.
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