If you’re thinking of setting financial goals for yourself you’ll need to develop these 5 habits to crush your money goals first. Let us know in the comments section below if you’re on track.
#1. Learning to Budget
Budgeting is a great habit that will play an important role on your money goals. Learning to budget allows you to know exactly how your money is being used.
Download the mint app to keep tracking of your monthly expenses and keep track of your net worth.
This crucial habit prepares you for the discipline required to meet your financial goals. It will teach you to stay focused on your numbers and to stick to your goal.
#2. Being on Time
Being on time demonstrates responsibility and can show people you’re dependable.
Your money goals will require you to be trustworthy. Here are some examples being on time influences your habits:
- Being on time for work (dependability & promotion opportunities)
- Paying bills on time (increases your credit score | shows lenders you’re responsible)
- Meeting deadlines (allows you to retain clients & enables more business opportunities)
Being on time is a great habit you can develop in order to crush your money goals because of how diverse this action influences your world.
Financial success will require you to pay your bills on time in order to increase your credit score.
By increasing your credit score, you’ll be able to easily qualify for a home, car loan, or anything of significant meaning to your money goals.
Read: How To Increase Your Credit Score | Reach Excellent
#3. Understanding Needs VS Wants
If you want to crush your money goals you’ll need to be able to identify the difference between needs and wants.
This habit will allow you to make smart purchases.
Needs Are:
- Food expenses
- Utilities
- Affordable rent
- Proper clothing
- Tools for work
- Means of transportation
Wants Are:
- The latest iPhone and tech
- Fancy and unnecessary clothing
- The new car
- Dining out and entertainment
- Vacations
When you are setting money goals for yourself and your family, you learn to identify priorities.
Priorities are the important things that come first. Anything beyond that is a luxury.
Read: 10 Successful Ways To Save Money During a Recession
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#4. Avoiding Income Creep Lifestyle
People who lack the will to spend less as they earn more experience what is known as income creep lifestyle.
If you move into a bigger home or decide to finance your dream car as soon as you receive a promotion then you are experiencing income creep lifestyle.
Avoiding income creep lifestyle means you’ll have to be patient and develop a habit to delay gratification.
You cannot reach your money goals if you are spending more money as you earn more. This cycle will keep you in a repetitive loop leaving you with little to no funds to save, invest, or pay off debt.
Here are some great habits you can develop if you earn a raise in income:
- Keep your expenses the same
- Use the additional income towards your money goals
- Delay gratification and stay the course
By keeping your expenses the same you’ll be able to allocate your additional earnings towards your money goals. You can use this extra money to pay off debt, save for a home, or to pay off high interest debt!
Read: 7 Easy Ways Millennials Can Start Earning More Money
#5. Always Aiming to Increase Your Income
When you’re looking to crush your money goals you’ll come to the understanding that it will require sacrifice to meet such goals.
You understand that increasing your income will allow breathing room to not only enjoy your money but to also meet your financial goals quicker.
Aiming to increase your income is a great habit that will help you reach your goals without a doubt as long as you avoid income creep lifestyle.
By delaying gratification, you’re setting yourself up for financial success.
Read: How To Set Financial Goals: 10 Simple Steps!
