When thinking about healthy money habits, the oldest advice is probably to:
- Spend less than you earn and invest the difference.
- Pay off your credit cards in full each month.
- Don’t buy things you don’t need.
And, even though we know this, most people are still in debt. The problem is not with getting out of debt, the problem lies with getting into debt in the first place. The number one reason people get into debt is because of bad spending habits.
To help you get rid of these bad practices, here are 5 “investment” steps towards healthier money habits.
- nvest Your Spare Change
Investing any spare change is a great way of getting started in any investment plan. There are numerous micro-investing apps which automatically rounds up any purchase to the nearest dollar and then automatically uses it again. These apps simplify the process so that you don’t have to calculate it.
- Invest Your Latte
A similar way in which you can cultivate a healthy money habit is by ditching your morning coffee purchase. This might sound like it won’t make a difference but if you just count up your monthly coffee purchases (which can amount to $150 a month, if you buy a $5 Latte every day) you’ll be surprised at how much you could have invested, and received a 10% annual return on that investment. So, start directing your Latte money to your investment account.
- Invest Unexpected Cash
The easiest way of achieving this is by pretending that the extra money you receive, doesn’t exist. When you get a bonus or a birthday check, put it straight into an emergency fund or investment account.
- Invest in Good Personal Practices
On a more personal note, there are two things you can do to cultivate healthy money habits.
- Get up earlier
Though this is no guarantee that you will be wealthier, it is certainly a guarantee that you will be more productive. And, ultimately this will generate more income in the long run. There are various studies to show that wealthy people wake up earlier, so it will definitely not do any harm.
- Spend 30 minutes per day reading
Investing in yourself, after any formal education, is crucial. And the best way to do this is to make time to read books or articles on how to be more successful.”Walk into a wealthy person’s home and one of the first things you’ll see is an extensive library of books they’ve used to educate themselves on how to become more successful,”
- Get up earlier
- Invest in Tracking Your Spending Habits
There is no way that you can build your wealth if you are not keeping track of what you are spending. Again, there are apps that can automatically do this for you, but the bottom line is that you have to keep track of your daily expenses.If you’re looking for information about potentially selling or buying real estate in Southern CA, please contact us today!