Personal Developement

10 financial habits that can make you wealthy

Savings culture:
If you ask me, there is a hobby everyone has in common, although we do not mention it. Everyone loves enjoying life and enjoying life means spending lots of money. I’m sure you will agree that given more money, we surely love to spend it on things we love. These include latest techs and gadgets, stunning clothes, treat to a cool outing or vacation, mouthwatering meals, luxurious apartments, fine cars, etc.

Spending money enjoying life is good but it does not in any way help us get ahead financially, but instead leaves us broke all the time. It hampers our ability to achieve the most important things in life. The economy is rough, getting jobs is tough, so you need to value your money and spend it wisely.

In case you have been seeking a way out of this rat race of earning and spending and not being able to get ahead in life, then it is possible that you may have gotten yourself entangled in a habit that always keeps your pockets empty. In this post, I have proposed a remedy that will help you out of this predicament.

Here are 10 financial habits that can make you wealthy;

1. Realize that you have a problem.
The problem with spend drifts is that they do not see anything wrong in it. To them, they are living out their life according to their desired standard and so there’s nothing wrong with that. To them, they have a taste for quality, (high taste). Only little percentage of the spend drift population can admit that they have bad financial habits.

If you are reading this article, then I congratulate you because you may be on the list of those who believe that something is wrong somewhere and there is an urgent need to change for the better.

The first step to solving a problem is to be aware that that problem exists. It is until you know a problem exist that you can begin to make dedicated efforts to solve it. Coming to the awareness of the existence of a problem means that problem is half-solved.

2. Discipline yourself
Knowing that your reckless spending is a problem and not doing anything about it, is not enough. You also need to resolve within yourself to change your bad financial habit of ‘uncalculated’ spending. Without the will power, you will not be able to keep to the rest of the rules treated in this post.

3. Simplify your life
Simplifying your life means cutting off things that make you spend more to the barest minimum. You may have to consider cooking at home instead of eating out. You may consider reducing TV and internet subscriptions to something you can still cope with. Why will you need a N30,000 shoes when that of N10,000 can serve the purpose?

You may consider trekking when it is possible instead of taking bike or hiring a taxi. There are different ways you can simplify your life. Find things or activities that take money away from you and reduce them.

4. Separate your wants from your needs
There are things that are a must when it comes to what we should spend on. Feeding, accommodation, transportation, shelter, utility bills and the children’s needs are a must, but there are others that can be avoided.

At this juncture, you may want to ask yourself; is it necessary to upgrade your wardrobe right now? Must you change your phone, car or whatever right now or can they still serve the purpose? Do you really need a premium TV subscription when you barely have time to sit down and watch TV?

Before you do that next upgrade, I want you to ask yourself if it’s really necessary. Setup a budget detailing how you will earn and spend your money and discipline yourself not to spend outside your budget.

5. Pay yourself first
Many of us are always good at paying every other person before remembering we have not paid ourselves. This is why our money quickly leaves our hands and ends up in other people’s pockets.

Here is a simple example. When you buy a product or patronize a service, you pay the owners of those products or services, thereby surrendering your money into their possession. When I go to KFC and order chicken and chips, I give them my money in exchange for the food and that is how my cash become theirs.

If one continues spending without reserving something for themselves by saving, they will soon come to know that they have carelessly given up their money to others through bad spending habit.

Next time cash gets into your hand, pay yourself first before spending on other things.

6. Open a savings account
I recommend you open a savings account if you want to start saving. It’s safer than holding cash in your house and it’s easier to manage. Walk up to any bank of your choice. There will be personnel readily available to tell you all you need to get started.

Setting up a savings account alone is not enough. You also need to get into the habit of putting money in it. One can have a savings account and still not save. Whenever you pay yourself, (as you already know what I mean by ‘paying yourself first’) pay the money straight into your savings account and leave it there for now.

You also need to discipline yourself, so as not to go back the next day to withdraw what you have saved up.

7. Create a zero line
This means setting up an amount figure where you will tell yourself you have no money at all. When I started saving, my zero line was N5,000. I made sure my account balance never went below N5,000. I later increased the line to N10,000 and so on… as my savings kept increasing.

8. Run away from debts
Debt is a sum of money that is owed or due. You need to be afraid of debt if you must get ahead financially. Never let debts accumulate on you. Pay your bills as they are due so as to free yourself from the burden of piled-up debts.

Not paying what you owe has a way of affecting your reputation and not only that, it keeps your creditors always on your heels and gives you course for serious worry. Debts are difficult to pay when they are accumulated.

To run away from debts, avoid things that always put you in debt especially borrowing for pleasure or buying things on credit. Going into debt is like eating today, what is meant for tomorrow.

9. Treat yourself
While I’m advocating a serious savings culture, I do not mean that you do so at your own disadvantage. Common, once in a while it’s okay to give yourself a treat because life should be fun; but do it sensibly. It is a serious problem to over treat yourself. You worked hard for it, so you deserve it. Spend on yourself, but don’t forget the priorities.

10. Invest
With your spending habit in check and some money saved up in your account, maybe it’s time you thought of investing in a business so as to earn more money.

Remember how I explained money leaving your hands and getting into people’s pockets; maybe it’s time other people’s money starts coming into your pockets. This is only possible when you get into business.

Read also:
7 businesses you can start with little or no capital.

Potentially, we all are rich as long as money, no matter how small, gets into our hands. All it needs is putting our spending habit in check and developing a savings culture. It is never too late to start. Start saving today, so you can be wealthy tomorrow.

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10 financial habits that can make you wealthy
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