Apply these money habits to ensure you never go broke!
A few years ago I was living paycheck to paycheck, constantly worried about when I would get my next commission. After about a year of struggling I finally decided to make some changes and be honest with myself.
Fast forward to now and I have a healthy savings account, great credit score and own my house (knock on wood)! I made some drastic changes in my life and it all started with incorporating these 11 money habits.
If you want to transform your life financially, read on to find out what habits you need to adopt to never go broke.
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HAVE A POSITIVE MONEY MINDSET
When I was living paycheck to paycheck, I was under the impression that I had to struggle in order to achieve anything. I believed that true success can only come from hardship. This belief is something that I’m still working on to this day and I’m learning to accept that money can come easily.
One of the ways I’ve started learning to appreciate money rather than fear it is by journaling and repeating money affirmations. Having a positive money mindset has been pivotal to my financial success.
If you’re new to journaling, here is a 30 day journaling challenge that can help you! If journaling is too much for you, start by adding these money affirmations to your morning routine.
Live below your means
There are two main ways you can solve all of your money problems- earn more or spend less. It’s simple but not easy.
With the cost of living rising it is getting harder to live below your means. If you’re finding that your current income does not support your lifestyle, look into high-paying side hustles.
If you haven’t evaluated your expenses yet- you need to.
CREATE A BUDGET THAT WORKS
You need a budget that is sustainable for you. Whether it’s the cash envelope system, a cashless method, or just a simple Google spreadsheet, you have to know exactly where your money goes every month and how much you need to save.
Financially secure women are not afraid of confronting their money habits and by doing so they tackle issues ahead of time. This proactive approach will allow you to never go broke.
prioritize your finances properly
Do you know whether you should pay off your credit cards or invest first? What are you prioritizing? By listing out all of your financial priorities you will know what to focus on first and it will be easier for you to get there. This clear direction allows you to constantly improve your finances and progress. Don’t know where to start? Here’s what you should do with your next paycheck.
Automate Savings
I don’t know about you, but I’m quite lazy when it comes to “adulting.” If you feel that way as well, set your savings on automatic! This way you won’t ever see the savings and it’ll be as if the money doesn’t exist! Out of sight, out of mind.
Be sure to check out these high yield savings accounts so you can earn better interest than a regular brick and mortar bank.
Set financial goals
Financially savvy women set financial goals. There is so much science behind goal setting and how pivotal it is for someone’s success. Don’t know where to start with yours? This is how to set your next financial goal.
Surround yourself With The Right People
I recently found the debt-free community on Instagram and it’s so inspiring seeing everyone’s journeys! I’m a very competitive person by nature so seeing everyone’s success pushes me to aim higher.
This habit is applicable to all aspects of life. If you want to be a better writer- surround yourself with successful writers. If you want to improve your finances- go out and meet those who’ve paid off debt and achieved what you’re striving for!
Financially successful women are always looking to improve and learn from those around them. Networking is one of the keys to your net worth.
Stay Educated
Ever since I started this blog I have been learning something new every day. The world of finance is vast and that is one of the most exciting things about this journey. I’ve consumed books, blogs, and video content. There’s so much to learn out there and I urge you to continue to educate yourself on what you’re struggling with. Knowledge is power.
Use Cash Back
I just started using Fetch rewards a couple of months ago and it’s awesome! It’s literally free money! All you do is scan your shopping receipts and earn points! You can earn gift cards to Amazon, Adidas, and other awesome rewards!
Take Advantage Of Credit Cards
I love my credit card. Don’t get me wrong, I pay it off every month and never spend above my means but I use it for everything. The rewards I get on it are tremendous and well worth my annual fee. In the few years I’ve had it, I have flown round trip to England and Maine for free, and paid for most of mine and my boyfriend’s cruise to Mexico!
If you use your credit cards wisely, they can be a huge advantage. If you’re not a huge traveler look into credit cards that fit your lifestyle. They have ones that are better for cash back whereas mine is more beneficial for traveling!
Use The One For One Method
If you want to avoid being broke, use the one for one method! It is so helpful in preventing clutter and impulsive spending. I started using this a few years ago and it’s done wonders for me! Every time I’m craving a shopping trip, I go through my closet and pick out the items I want to replace. If I only find one shirt I want to give up, then I’m only allowed to purchase one item! This keeps me from buying unnecessary clothes.
This isn’t only applicable to clothes though, I use it for everything. I make sure I always finish my skin care before purchasing new ones (this is the hardest for me because I’m a huge skincare aficionado!)
The one for one method will help you curb your emotional spending and will help you stay on track of your goals. Also be sure to check out how to break your online shopping habit.