What are the top 5 positive money habits?
Paying their bills on Time
Wealthy People always pay their bills on time. It is so important to be aware of your bills and pay them on time. Opening up your mail and email on a timely basis and making sure your bills are paid. Now a days you can pay them automatically! So you don’t even have to think about the dues dates, however, you should still be aware of when they will go through. Successful people know exactly their bills and when they are due. Write them down and write down when they are due.
Pay Themselves First
Are you saving on a regular basis. It may sound simple and easy.
Guess what?! It is! But you have to actually do it.
Wealthy People make it a habit and have it done automatically. Successful savers do this automatically. It is okay to start small and when you have a raise or increase income to increase this amount.
They pay attention to where their money is going
Are you looking at your checking account and know what money is coming in and what money is going out? Wealthy people look at where their money on a regular basis and make it a positive habit.
Back when I first started out in the real world the first thing I learned was how to reconcile a checkbook. I know most younger generations don’t even know what a “Check Register” is.
So how does someone keep track of their money?
The best option is to use some budget software to track your spending. I highly recommend YNAB and have written several posts about why and how to create a YNAB budget. YNAB is not the only software program out there. There are so many different ones like Mint.com, and Personal Capital (affiliate link). Take a look at them and see which ones work for you. There are new ones all of the time.
Creating a Plan with their Money.
Life does happen and it goes by fast and wealthy people have a plan in place even before they become wealthy. Most wealthy people are not born with money and they had to make it themselves. One of those habits is they create a plan with their money.
It is so important to start working towards retirement as early as possible. Your 20s go by fast and compound interest and compound savings is your friend and then before you know it you are in your 40s, 50s, and 60s. You are paying attention to your money but do you have a long term plan in place. It might be a good option to talk to a coach and financial planner to find out where your money is going and where you want it to go and how much you need for your future retirement.
When you think about it most careers and jobs require planning before doing a job or project. Why not your own money?
They Track Their financial net worth
Wealthy people add up all of your asset and subtract your liabilities to find out their net worth. There are many different ways to track net worth and there are different tools to track it too. Personal Capital (affiliate link) is a great tool as well. It is important to see your progress and watch it. It gives you the progress over time and you can find out if it is going up or going down. Paying off debt and increasing your wealth are excellent goals and tracking that with the net worth calculation is very helpful.
You don’t have to go through this alone.
The goal of a financial coach is to educate clients on the basics of personal finance. Guess what? The goal of a coach is help you implement the 5 Positive Money Habits that Wealthy people do. The coach together with the client creates a spending and savings plan that reflects the values and goals of the client. The coach then empowers clients to take responsibility for their decisions, supports their continual learning and growth, and serves as an accountability partner throughout the process. You are not alone! You can do it!