Tag: Money Goals

5 Habits You Need to Crush Your Money Goals

5 Habits You Need to Crush Your Money Goals
5 Habits You Need to Crush Your Money Goals

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

Crush your money goals by setting a budget
Crush your money goals by 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

Your money goals will require you to be 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

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.

Avoid 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

Increase Your Income To Crush Your Money Goals
Crush your money goals by increasing 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!

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How To Stop Living Paycheck To Paycheck (For Good)

How To Stop Living Paycheck To Paycheck
Lets reach financial freedom together

We’ve been there. You want to save money but somehow it seems to be more difficult than it should be. Most importantly, you’re taking care of your expenses but have very little leftover before the next paycheck. As a result, you’re holding out until the next pay day. What if you never had to worry about living paycheck to paycheck again? The great news is that it is absolutely possible. Here’s how to stop living paycheck to paycheck (for good).

Look At Your Bank Statements & Budget

It is very important to know what you’re spending your money on. Look at your bank statements to see where you may begin to set limitations and write them down. Budget the amount of money you spend on eating out, on games or music, online shopping, etc. This will vary for each individual.

Cutting back on expenses will allow you to gain control of your routines and habits in order to pocket extra cash in case of any emergency.

Increase Your Income

There are many ways to increase your income. You may work for a promotion or raise, or take up a side hustle to earn extra money. For instance, by earning an additional $100-$300 a month will mean you’re up $50-$150 bi-weekly before the next paycheck. The catch here is to not fall into income creep lifestyle. Otherwise, you won’t be able to execute this properly.

Beware Of Income Creep

Income creep is when one lacks the will to retain spending additional income after a raise, sale, promotion, etc. As a result, you continue to live with the stress of never having enough. Income creep is the reason why people earning six figures a year also live paycheck to paycheck. If you continue to add or create more expenses as you earn more money, you will be stuck in this quicksand; a never ending loop. Delay your gratification and your future self will be glad you did!

Live Below Your Means

Living below your means is the responsible and most effective way to manage your personal finances. We’ve learned that this strategy goes hand in hand when you increase your income as they compliment each other very well.

So what does it really mean to live below your means?

To live below your means requires you to not increase your standard of living (bigger car, bigger home, etc.) as your income increases. Living below your means allows your expenses to stay relatively the same which opens opportunity to save money and invest it as well.

As you continue to practice these winner habits, you will gain an intuition and an understanding of when it is best to increase your standard of living. In the mean time it is very important that you learn how to stop living paycheck to paycheck first.

Increase All Your Monetary Accounts

The privilege to stop living paycheck to paycheck will depend on how well you manage your monetary accounts. As a result of implementing these strategies (budgeting, earning more income, and living below your means), earnings will roll over in your checking account due to the money consistently being replenished. By disciplining yourself to stay on this path, you will no longer be living paycheck to paycheck.

Stack the amount of money in your checking account in order to gain access to funds from which you can save and invest. In other words, increase all your monetary accounts. Tip: Pool money from your checking account into several accounts that will allow you to earn more income passively. More on that below.

If you’re curious on how to invest money in the stock market, check out this amazing post here. We walk you through step by step.

Other Means Of How To Stop Living Paycheck To Paycheck

Downsize

Stop living paycheck to paycheck by cutting back on rent and allow breathing room to save money by downsizing. Make an effort to seek the best options regarding your long-term success. Delayed gratification will come a long way.

Pay Off Debt

By paying off debt you open up opportunities and have a chance at experiencing financial growth. If you pay off a credit card, you no longer have to worry about the monthly expense. Say you owe a small amount on your vehicle. Get a payoff quote and eliminate that expense. By freeing up this money, you can beak the monthly payment into segments and pool it into checking and savings. Stop living paycheck to paycheck by eliminating payments to lenders every month.

Generate Passive Income

Generate passive income so that your small bills are paid. What if I told you the interest you earn in a money market account can literally pay your monthly Netflix subscription? We published a post on 5 guaranteed ways to earn passive income that will help you learn more so that you can take care of your bills without tapping into your earned income. Stop living paycheck to paycheck by earning extra cash on the side.

Make It A Habit

Make it a choice and a habit to stop living paycheck to paycheck. After all, it’s in your power. Implement these strategies in order to change your life and begin feeling what it is to truly be financially free. Go back in time today and secure your financial future!

How To Stop Living Paycheck To Paycheck

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