If you want to grow your wealth, or at the very least be better with your money, then there’s several habits you need to develop in order to make this happen. Let’s take a look at some of the most helpful.
Have clear and sensible goals
There’s no point wishing and hoping to make your first million by next year. You need realistic goals and they need to be clearly mapped out. You should try this budget calculator to work out your annual income, net worth and outgoings are as this will allow you to set yourself the smaller goals that pave the way for the big ones.
Make sure you invest
You’ll always have some spare money floating around – in cash or in your accounts – so make sure it gets invested. Some platforms let you make small payments each month, so don’t be discouraged by thinking you’ll need mega-bucks each month. Spend time reading about investing, too.
Make saving a priority
Some of that spare change can also be put into savings. It really doesn’t matter how much you put into your savings account each time, as long as something goes in on a regular basis. Even if you have quite a lot of disposable income, you still need to save as it’s so much better for your long-term plans than spending it. If you have debts – student loans or a mortgage – then you should also concentrate some effort on paying them down faster. All debts accrue interest, so the sooner they’re paid off, the less you’ll pay in interest in the long run.
Make a lot of your payments automatic
This is one of the smartest moves you can make. Setting up direct debits for your investment and savings accounts, as well as your creditors means you’re more likely to stick to your schedule. This is especially important with creditors as late payments mean late charges and extra interest.
Read about finance
If there’s one habit that the financially-stable and the wealthy have that others don’t, it’s an interest in finance and reading about it. It’s garnering financial knowledge and wisdom that’ll help you to garner actual money! It doesn’t matter how well you did at school or what subjects you were good at, learn as much as you can about finance now and it’ll help you to make good decisions.
Make the right friends and connections
This doesn’t mean you have to become a social-climber! However, if you have a few friends who are into stocks, or who are notorious penny-pinchers or successful business-owners, then you can learn from them. We pick up the habits of the people we spend the most time with, so move away from anyone who thinks that the answer to everything lies with Mastercard!
Keep track of your spending
If you don’t know how much you’re spending on a daily, weekly and monthly basis, then you can’t pinpoint where you’re wasting it! If you see that you spend £50 each month on iced coffees with extra cream, then you could divert some or all of that £50 into your savings account (and away from your waistline).