We all have people who we look up to, those that have their money game in check. They don’t have too much Gbese and aren’t frazzled when they can’t afford Aso-Ebi. These are people who somehow have a good hang about money, and we hope to be like them one day. Not that they don’t spend too, but they know how to chop life and maintain balance.
These people have a good relationship with money, which is built over time. The earlier we start cultivating their habits, the faster we reach that stage and become the rich aunts and uncles that have our money in check.
Here are five habits financially successful people have that we can start to build today
- SPEND LESS THAN THEY EARN: People who are good at managing money know that they can’t buy everything that comes their way or appeases them. They take their time and ensure that they buy what is necessary and of value.
There is always something to buy. It could be a new shoe, that new laptop or phone. There is a limit to what you can buy at a time. The money you earn should not be all spent on buying stuff. There are two things financially successful people do to make sure they don’t blow away your money and start wondering where it all went. They budget and save.
● Budget: This is a plan on how you’d spend your money. If there is one thing you cannot afford to miss out on is control over your money. At the very least you should be in charge of how you spend your money. When you have a budget, you know what you can and cannot afford. You know where your limits are.
● Saving: Keeping a percentage of earned income for future needs. To save, you must pinpoint why you are saving, how much to save within a particular time, and the percentage of income saved.
- DELAY GRATIFICATION: We all want better lives for our future selves. When we engage in good habits such as saving, budgeting and investing, we choose the future version of ourselves over our present version of ourselves. These habits might not feel good at the moment, but they are beneficial to us in the long run.
“As a general rule, the more immediate pleasure you get from an action, the more strongly you should question whether it aligns with your long-term goals.” James Clear, Atomic Habits
- CONTINUOUS LEARNING: Financially successful people are always learning and seeking ways to improve. They learn from their mistakes and the mistake of others. They are never complacent. They never stop learning. They go out of their comfort zone and do more; therefore they earn more.
- SET GOALS: People that secure the bag do not do so by luck. They have a direction or at least a sense of where they want to be. They set targets and goals they want to achieve. They are never to be cut off guard. They are clear on what exactly they want. Their goals are SMART—Specific, Measurable, Achievable, Realistic, and Time-Bound.
- ROUTINES TO FOLLOW-THROUGH: Many people set goals, but financially successful people create routines, habits, and systems so that they can follow through and achieve their goals.
It is not enough to set goals; goals are to be achieved or at least strived to be completed.
Successful people achieve their goals by making their routine more comfortable to follow. They can choose to automate their savings and investment. Track their spendings. They can limit the amount they can withdraw every month, and other ways to make sure they stick to good habits for their future selves.
WHAT TO DO NOW
Once you are done reading this, don’t procrastinate. Take action on these to set the ball rolling.
Track All your expenses: Write down anything you buy and the corresponding amount in the book or an app. Make sure you date them, so you know when you purchased what. This helps you know how much you are spending and when it’s time to budget and cut some spendings you know what to stop buying.
Start reading about Personal finance and investing: Take a book, read an article, read a tweet, follow a conversation, or join a webinar. The more you learn, the more you see opportunities to earn.
By Mohammad Tahir