There are some people who always have money, no matter how little they earn. On the other hand, you can also find people who earn respectable salaries but are hardly able to make ends meet. They always struggle with money.
Just like other habits, financial habits are also formed over time. The good news is that it is never too late to learn and start something new! Imitate the following money habits of rich people to create wealth and build your own emergency funds.
If you are also wondering what people with money do differently, then keep reading. Here are 8 habits of people who always have money and are never broke.
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1. They save
People who always have money are great savers. They learn to save at a very young age. If you also want to be like them, start saving today.
If you are thinking, you’ll start to save money when you reach a particular salary, you are wrong.
There is nothing like enough money. As your salary increases, so does your living standard.
Spending money has no limits.
Saving has nothing to do with how much you earn. Saving is about the way you spend.
Keep a track of all your expenses and see where you can save money. It is always better to save before spending.
At the beginning of every month, save at least 10% of your salary.
Have a separate savings bank account or start saving in envelopes. Do what you are comfortable with but do it consistently.
Related: Simple Money Saving Challenge: $500 in 30 days
2. They are not impulse buyers
Impulse buying does more harm than good in the long run.
It is wrong in every way possible. It hurts your bank account, clutters your house and makes you believe; you don’t have enough.
Stop buying things you don’t need.
Shopping is not a remedy but a trap which leads to financial problems.
Learn to control impulse buying. If you like something, don’t buy it immediately. Wait for at least a week before buying it. If after a week you feel you need it, go for it.
Another way to avoid impulse buying is by not going shopping just because you are bored and have nothing else to do.
You need a hobby to kill boredom, not shopping.
Related: Productive things to do when you are bored : 50 ideas
3. They use their free time to earn money
Start something outside of your 9 to 5 job.
People who always have money do not rely on a single salary. They usually have multiple sources of incomes.
Use your free time to start a side hustle.
Now, please do not say that you are not good at anything and have no talent. Every person is talented. You just need to have faith in yourself.
Turn your hobby into a side hustle. I believe every hobby can be turned into a source of income. You just need to be passionate enough.
For instance – there are so many people on YouTube and Instagram who earn good money by doing makeup tutorials. They turned their hobbies into a passion and now earn through it.
I loved to write, so I started blogging. When I started my own website, I knew nothing about it, but I learned with time and now this website is my side hustle.
4. They love creating budgets
So, you ask me who loves creating budgets? Well, people who are good with money do!
Budgeting is one of the most important financial habits that everyone should have.
A budget allows you to track your spending habits and stops you from overspending.
When you don’t have a budget, you don’t have a limit. And limitless expenses result in debts and hardship.
Assign a budget to all the areas of your expenses and decide where you want your money to go.
Related: How to save money on groceries : 15 easy money saving ideas
5. They do not spend to impress
People who always have money understand that they don’t have to prove anything to anybody.
Their financial condition is their personal matter and does not need validation from friends and family.
Your friends and family members who really care about you will never judge you for not throwing extravagant parties.
Do not spend to impress, because respect is not earned with money.
Instead of spending money on unnecessary showoff, save that money. The money you save is your true friend, which will help you when you need it the most.
Learn to say NO to people and stop hanging out at places which are out of your budget.
6. They have financial goals
Decide your financial goals.
I want to become rich, or I want to have a lot of money are not goals but merely desires.
Have a goal and then chalk out a plan to achieve it.
For instance – Your financial goal is to build to an emergency fund of $1000. So, your action plan consists of small tasks and should answer the “HOW”.
In this case, your course of action could look like:
- Taking a money-saving challenge
- Saving $100 on groceries each month, till you reach your goal.
- Starting a side hustle to earn passive income
Building wealth takes time and requires motivation and dedication, therefore never set unrealistic financial goals.
7. They don’t buy what they can’t afford
This simple mantra is the answer to a large number of financial problems.
Buy only those things that you can afford. Possession of expensive things does give you a sense of fulfilment, but that felling is only temporary.
I believe, the constant pressure of being under debt is more troubling than the absence of luxury.
I know people, who are ready to go under debt and borrow money from friends, just to buy the latest version of the iPhone.
Is a mobile phone worth a debt? I don’t think so.
8. They are always ready for financial education
People who always have money are learners. They are open to financial education at any given time and age.
By financial education, I am not asking you to take a loan from the bank and get a degree in finance.
It simply means to be ready to learn about money, investment and budgeting.
Read books on personal finance, take money-saving challenges, find out ways to save money and do everything else in your capacity to manage your money.
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