15 Financially Healthy Habits You Should Imbibe

15 Financially Healthy Habits You Should Imbibe

Our finances are an integral part of our everyday lives and rightly deserve to be treated importantly. Finances permeate every aspect of our lives. They go a long way in determining our general well-being and state of mind. Hence, we can’t afford to leave to chance anything that has to do with our finances.

We can’t afford to be insouciant with our financial habits. We need to cultivate financially healthy habits if we really do want to make our finances work. While I don’t have it all figured out, yet, it is something I’m actively working towards. Financial freedom is the goal and I owe it to myself not to stop until I eventually make it work. Below are some financially healthy habits that have helped me so far and some more that I plan to put to practice.

 

  1. Learn To Save Money.

To save, you need to carefully scrutinize your habits.  What are those ‘expensive’ habits draining money from you? Where can you cut back on your spending? However, of great importance is that you know why you are saving. If not, you’ll probably end up squandering your savings. Are you saving to invest? Or, to acquire assets? Are you saving for your retirement? You should have a reason for saving.

  1. Avoid Impulse Spending And Spending To Impress.

Spending on impulse or to impress is a wasteful way to spend money. You should avoid it at all cost. Remember, every kobo that you lose to impulse spending is one extra kobo you will never get to save.

  1. Invest.

Investing your money is another of the many advisable financially healthy habits you can imbibe. And if you can exercise the patience it requires, settle particularly for long term investments. However, before you go ahead with any investment, make sure to do your due diligence and be true to yourself. Not every investment opening that pops up is worth putting your capital into.

  1. Track Your Expenses.

Having a budget is a financially healthy habit you should put to use. Draft a budget, weekly or monthly, and adhere as much as you can to it. The absence of a budget is the reason behind most of our wasteful spending.

  1. Adopt A Frugal Lifestyle.

Simplify your life. Decide to cut down on unnecessary expenses. Sacrifice immediate gratification for the sake of your financial goal(s). A frugal life equals more capital that can be put to good use.

  1. Create Multiple Streams Of Income.

Because, really, what’s better than one source of income? Two. And what’s better than two? Three. And so on. Multiple streams of income are advisable just in case one source of income dries up, you aren’t left stranded. This is where you can begin to engage your passion and put your talents to good use.

  1. Set Financial Goals.

Your goal will serve as the road map that will guide to your financial destination. They’ll ensure you don’t lose focus.  Set realistic financial goals and immediately start working towards achieving them. You also shouldn’t play it too safe when setting your financial goals. Try taking some big but calculated risks.

  1. Hold Yourself Accountable For Your Finances.

If anything goes wrong with your finances, don’t resort to playing the blame game. That isn’t at all a financially healthy habit. If you can’t take responsibility for your finances how do you expect to take full charge of it?

  1. Train Your Mind To Think Rich.

Your mindset goes a long way in determining what your finances will look like. You need the right mindset. It is non-negotiable. The right mindset teaches you to control money. The wrong one teaches you to be controlled by money.

  1. Take Stock Of Your Financial Progress.

On your financial journey, there are lessons to be learnt. Some of these lessons you might not necessarily learn while on the journey, only when you look back. This is why stocktaking is a financially healthy habit. It helps you learn from your own experiences.

  1. Surround Yourself With The Right People.

Your circle of friends plays a major role in determining your financial status. The right sets of friends will encourage you to dream bigger, reach more milestones and expose you to opportunities. The wrong friends will drag you to a financially bad place. If you can’t keep such people completely out of your life, try to limit your interaction with them.

  1. Don’t Rest On Your Laurels.

So, you have achieved your major financial goal. Congratulations. But, no! This is not the time to relax. Resting on your laurels isn’t a financially healthy habit. Instead, set new goals, bigger and more daring ones.

  1. Learn About Money.

Invest time, energy and money – yes, money – into learning about money. Don’t rely solely on your traditional knowledge of money. Your updated knowledge of money will come in handy when making important financial decisions.

  1. Don’t Rush Financial Decisions.

It does you more good than harm to be extra cautious when making financial decision. Making financial decisions on a whim, no matter how inconsequential they seem at the moment, is not advisable.

  1. Make Borrowing The Last Resort After Your Last Resort.

Avoiding having to borrow money is one really important financially healthy habit. You don’t want debts. And if it turns out you can’t help but borrow money, you should consider non-traditional lenders first. Why? Interests rates mostly turn out to be a cancer. You want to avoid those by any means necessary. Also, clear your debts, if you have any. I really hope not.

[Bonus Tip] Live Like You Already Have A Family.

This one is for those of us who are still single. Even better for those of us who aren’t presently in relationships. Make your financial decisions like your finance isn’t currently about you alone. This habit is one on the list of financially healthy habits that will benefit you in the present whilst simultaneously preparing you for the future.

There you have it, financially healthy habits that you should consider putting to use.

 

Before you leave, please do well to check out these other posts

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