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17 Good Finance Habits You Should Adopt - featured image
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17 Good Finance Habits You Should Adopt

If you're like more than half the adult population, you've made a New Year's resolution to get your finances in order.Adult population

That's a great start, but unless you do things differently to what you've done up till now, why should anything change.

But if you change your money habits, then your outcomes will change.

So let's look at 17 good money habits you could adopt.

But before we do, let's me share:

The 4-step formula to financial independence:

The rich obey four timeless rules for achieving financial freedom.

So please don’t dismiss them because they sound so simple:

1. Spend less than you earn. 

This maxim may seem obvious, but many people have difficulty following it. 

If you're spending more than you earn, you will never become financially independent.

You will be paying money to others for the rest of your life.

The earlier you start living by this rule, the better.

It is never too late to start.

2. Invest the difference wisely. 

I’ve already explained that while many Australians will earn somewhere around $8 million during their working life, many will retire poor.

Clearly the level of your income has no bearing on the level of wealth you achieve, what is critical is the amount that you save and how you chose to invest it.

3. Reinvest your investment income so that you get compounding growth.

You will never become financially independent on your earnings alone, you need to keep reinvesting.

In fact, by the time you become financially free almost all of your assets will have come from compounding capital growth, not from your income, your savings or your rent.

4. Keep doing steps 1 and 2 until your asset base reaches a critical mass.Invest the difference wisely

This means you will build a cash machine that provides the income you desire.

My best selling book Michael Yardney's Guide To Getting Rich is about helping you build your own cash machine - click here now and learn more about it.

Think about it…

What if you did things differently to most people?

Imagine if you followed these 4 rules and started heading down the path of financial security.

Of course you’ll have to do much more than that, and that's where those good money habits I mentioned a moment ago come in.

Let's look at them.

Are you?

  1. Continuing your ongoing money and finance education. Good Or Bad habit
  2. Keeping a budget. Because for most people, when it comes to managing their money, failing to plan is the same as planning to fail.
  3. Tracking your income and expenses.
  4. Opening your bills when you get them.
  5. Paying your bills on time  therefore avoiding late fees.
  6. Refusing to pay the minimum on your credit card bills each month. Did you know that making minimum payments each month will ensure you pay the maximum interest?
  7. Reviewing your credit card statements for errors and erroneous charges.
  8. Never buying anything on impulse. One of the best ways to help prevent this is to make a shopping list and then stick to it.Being careful not to overspend on gifts.
  9. Paying attention to mortgage interest rates — even after you buy your home or investment property. Currently there are some potential refinancing opportunities that could save you tens of thousands of dollars over the life of your loan.
  10. Spending less than you earn.
  11. Saving part of your income for investment like I mentioned above.Great money tip
  12. Never assuming past performance guarantees future results.
  13. Reading all contracts before signing on the dotted line.
  14. Avoiding the lottery. There is a reason why the lottery is known as a tax for those who can't do maths.
  15. Ignoring the temptation to keep up with the Joneses.
  16.  Occasionally rewarding yourself by splurging. You have to enjoy the journey otherwise you won't enjoy the destination.
  17. Treating your household like a business. By taking an active role in managing your finances — and looking at ways to maximize your income — you’ll ensure a brighter financial future for you and your family.

Now is the time to take action and set yourself for the opportunities that will present themselves as the market moves on

If you're wondering what will happen to property in 2020–2021 you are not alone.

You can trust the team at Metropole to provide you with direction, guidance and results.

In challenging times like we are currently experiencing you need an advisor who takes a holistic approach to your wealth creation and that's what you exactly what you get from the multi award winning team at Metropole.

If you're looking at buying your next home or investment property here's 4 ways we can help you:

  1. Strategic property advice. - Allow us to build a Strategic Property Plan for you and your family.  Planning is bringing the future into the present so you can do something about it now!  This will give you direction, results and more certainty. Click here to learn more Metropole
  2. Buyer's agency - As Australia's most trusted buyers’ agents we've been involved in over $3Billion worth of transactions creating wealth for our clients and we can do the same for you. Our on the ground teams in Melbourne, Sydney and Brisbane bring you years of experience and perspective - that's something money just can't buy. We'll help you find your next home or an investment grade property.  Click here to learn how we can help you.
  3. Wealth Advisory - We can provide you with strategic tailored financial planning and wealth advice. Click here to learn more about we can help you.
  4. Property Management - Our stress free property management services help you maximise your property returns. Click here to find out why our clients enjoy a vacancy rate considerably below the market average, our tenants stay an average of 3 years and our properties lease 10 days faster than the market average.

About Michael is a director of Metropole Property Strategists who help their clients grow, protect and pass on their wealth through independent, unbiased property advice and advocacy. He's once again been voted Australia's leading property investment adviser and one of Australia's 50 most influential Thought Leaders. His opinions are regularly featured in the media.
1 comment

....be as mean as you can be....save....save....save.....save.....Ditch the bloody free loaders in your life......Establish a poverty mindset and live in a frugal state for 30 years or more.....

0 replies

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