19 Aug 5 Habits Of Financially Stable People
Getting your debt paid off and your finances in order is a difficult feat. You definitely don’t want to slide back into debt once you’ve dug your way out. One thing you’ll notice about people who are financially stable is they have the same habits.
Here are 5 habits most common in those that are financially stable and how you can develop them too.
A common habit among financially stable people is the fact that they set goals. When you set goals of any kind you are more likely to achieve them. It gives you direction on where to take your finances and gives you something to work towards.
You can create goals for anything that you are going to spend your money on. This can include a large purchase or a family vacation.
Write down your goal and put it in a place where you will see it often. Try your desk at work or even your refrigerator at home. This way you constantly see it and are reminded of it. You are more likely to stick to a goal you remember and see everyday than if you were to write it in a journal and put it away.
Your goals don’t have to be for purchases or family trips. You can create a goal to pay off debt or get your finances in order. Start out with short-term goals then work your way up to long-term goals.
To achieve your new goals you’ll need to prioritize your spending. People who are financially stable avoid unnecessary purchases like the plague. Whether it’s a new investment opportunity they don’t feel good about or a simple shopping trip, they avoid it.
Getting started with this habit now can help you avoid getting back into to debt in the future. This is especially the case if one of your goals was to pay off any amount of debt. By prioritizing your spending you can free up quite a bit of cash flow.
This can be directed to your debt and help knock it out faster.
Budget & Tracking Spending
If you interviewed every financially stable individual around they’d be able to show you a budget and where all their money was going. Knowing where your money is coming from and going to is important to having healthy finances. The way you can keep an eye on this is to create a budget and track your spending.
You can do this using the multitude of financial tracking software out there today. Find a free one and get started. Tracking your spending will help you keep an eye on exactly where your money is going. It’ll tell you how much you have, how much you can spend, and how much can be used to pay off your debt.
Make More Money
While you may not be in a place to find a better job, or you just recently received your yearly promotion, there are other ways to earn money. You can start by finding ways to make money around your home, in your spare time, or by taking on a little extra work at your job.
Having more money equals your debt being paid off sooner. Which can lead to many stresses being lifted from your shoulders. You’ll not only have healthier finances but a healthier you.
They Live Below Their Means
A common reason why wealthy individuals are wealthy is because they are good at holding onto their money. They don’t live above their means. Sure, they may have a fancy house or drive a fancy car but the financially stable have everything else taken care of first.
They live by the simple rule of ‘Just because you want it doesn’t mean you need it’. This is a great rule to live by because it promotes thinking before you spend. When you think about a purchase and weigh whether you need it you realize you probably don’t.
That alone can save you tons. This works for large and small purchases.
Say your looking to upgrade the family car but you think your current car could last a few more years. Ride it out, you never know what kind of amazing deal could come along in the future.
By developing these habits you’ll see the benefits in other areas of your finances as well. You’ll have funds available so you won’t have to use credit and you can keep an eye on your credit score and know where you are sitting at all times.