If you want to be the next millionaire in town, build your income, or save for retirement its important to form good financial habits, but what do good financial habits look like? In this post your going to learn about three key strategies that you can implement for 30 days and form as good financial habits.
Well my name is Caleb and just to tell you a little bit about my self, my first job was hell to me. I was working sixty hours a week in a factory and spent most of my money just getting to and from work, until I found these three financial strategies that I now formed as habits. Now I work at a better place, getting paid more for doing less, and now I can say that my job is not my only income.
So lets jump into the first good financial habit, the Mental Budget. Many millionaire’s can tell you off the top of their head, what they have earned and where they have spent their money on. You can do it too, but on a smaller scale. All you have to do is calculate what you have earned after tax per month, add up all your monthly expenses (earnings – expenses = actual income.) Then you subtract your expenses from your earnings to figure out your monthly actual income. If you divide your monthly actual income by four, you get your weekly spending budget. For me my weekly spending budget is twenty dollars. Now all you have to do now is focus on your weekly spending budget, so each purchase you make each week you substract from that number to stay in budget.
Why do you buy the things that you buy. Some people focus on buying name brand products, but ignore the no name brand. Just because you are familiar with a product does not justify the price, don’t buy it if the price makes no sense that’s nonsense. No name brands can be just as good and a better option because the price is justifiable. You shouldn’t pay for a brand, you should pay for a product.
BUY WHAT LASTS
When businesses are purchasing there assets they look for things that last to save on their break down cost. So why not use the same method, when I was in college I started using this method for food. I will focus on purchasing rice and pasta because they had a longer shelf life, then I was able to buy the food that went well with those types of products. You can buy cars that lasts, computers that lasts, shoes, and so on. Focusing on what lasts saves money for the long run and puts it back into your pocket. Have you ever drank a glass bottle coke and kept the glass bottle to see how long the glass will last, Try it.