There is no easy way to become wealthy. It takes time, discipline and patience to build your wealth. In order to do this, you need to develop smart money habits that you stick to and incorporate in your daily life. You need to remain disciplined in throughout your career to make smart money decisions and not splurge insignificant items that will stall your ability to be wealthy. And most importantly, you have to remember that being wealthy takes time and will not happen overnight. You may have to remind yourself to stay focused and maintain your smart money habits no matter what.
#1 Smart Money Habit = Live Below Your Means
If you live paycheck to paycheck, there is never the ability to set money aside to build your wealth! Although a brand new car may be nice to drive around in, if you can’t afford it, don’t buy it. The same goes for your home. When you get approved for a loan, often you look at homes at the top of what you can afford. Consider looking for a home in a lower price range so you can set money aside to build your wealth. No matter what your income level, try to live below your means. This will allow you some room to save and be able to afford unexpected emergencies.
#2 Smart Money Habit = Avoid Debt
If you want to build wealth, you need to avoid debt all all costs. You can’t build wealth if you have numerous credit cards with high interest rates. You should have a credit card to build your credit, but you try to pay it in full every month and not maintain a balance.
#3 Smart Money Habit = Establish An Emergency Fund
No matter how hard you try to avoid them, emergencies will arise. These emergencies can be a financial hit, if your do not save for a rainy day. Even if it is only $100 per money, try to set aside some money each month for emergencies. If you have an emergency fund and a situation arises, it will assist you. If you do have an emergency and deplete your emergency fund, work to rebuild it immediately.
#4 Smart Money Habit = Avoid Paying For Convenience
Our generation can purchase almost anything if we are willing to pay for that convenience. How many people do you see daily walking around with their Starbucks in hand? You can have meals, wine, groceries, dry cleaning, massages, yoga instructors, trainers, etc. delivered to your door! However, you will pay for these conveniences. Avoid paying hefty convenience fees and be diligent about paying for convenience.
#5 Smart Money Habit = Live On A Budget
If you can create a budget and be disciplined about it, you will be able to set aside money and build your wealth. You next to keep track of where your money is coming in and where it is going out. Establishing a budget will also allow you to easily identify where you need to make cuts.
#6 Smart Money Habits = Sell Items You No Longer Need Or Use
Americans tend to “save” unused items thinking they will use or need them later. Get rid of them! Sell them on letgo, craigslist or OfferUp. It will provide you with a little extra cash to save or pay down debt. And if you have a storage unit, go through it. Sell items that you do not have an immediate need and get rid of the expense of the storage unit.
#7 Smart Money Habit – Start A Side Hustle
Even if you have a good full time job, having a side hustle is a great way to make extra money and be able to work extra hours based on your availability. You can start a blog, teach a class, driver for Uber or Lyft, rent a spare room, answer questions on JustAnswer, tutor, walk dogs/pet sit, clean houses, sell on Etsy, become a freelance writer, teach music lessons, or be a small business or corporate consultant. Use your skills to your advantage and make extra money. Many people are willing to pay for these types of services.
Building wealth takes time, discipline and patience. If you make mistakes along the way, just get yourself back on track as soon as possible. Find a plan that works for you and stick to it. Remember you are paying yourself.