Saturday, 25 February 2017

3 Basic Money Habits That Puts You On The Path To Financial Success



Your thoughts and actions over time form your habits, and your habit gives direction to your life. Most people make poor financial decisions in their life at one time or another, but the ones who realize it early and decide to start making smart financial decisions have a better chance at being financially successful.

You need to take the time to create some great money habits that could have a major positive impact on your life in the years to come.

1. Always ensure your income exceeds your expenses.
This calls for planning, accountability and discipline. Habitually try not to bite off more than you can chew each and every month. The key is to know how to budget and have consistent and realistic self assessment and self-control in managing your money.
There are a couple basic principles that allow you to easily live below your means. Such as making sure your rent is 1/3 or less than your take home monthly income. This leaves excess cash flow for bills and investments that will bring you funds in the future.
Secondly, spend more of your money on acquiring assets than liabilities. For every major purchase, ask make sure you satisfactorily answer the the following question:  “what is my ROI (return on investment) on this.”
2. Have more than one stream of income.
The most successful people have several channels of income coming in, usually it is monthly, and for some it’s weekly, while for some others it is daily. We live in a very progressive society today and there are a lot of ways to make money. By having multiple streams of income you minimize your chances of going broke, and increase your chances of building wealth.
Do not just depend only on the full-time job and think ok this is the way I am going to make money. Carefully search out what you’re passionate about, and figure out how you can monetize it. Opportunities are endless these days, especially with all the technology out there. And of course, as Robert Kiyosaki always emphasize there is always Real Estate, a great way to generate passive income.
3. Develop adequate and up-to-date knowledge of your banking.
Successful people have a full understanding of their banking! They realize that all the little bank fees a person can accumulate will add up! Be aware of overdraft fees and monthly fees. Know all the automatic charges coming out of your account every month, from the smallest to largest, it all adds up.
Essentially, know your bank statement like the back of your hand, and be able to recognize every transaction therein.
Lastly, do not get caught up with paying interest on your credit card debt. Pay you bill in full and on time every month! Successful people make their money work for them and focus on gaining a return.
Watch out for more inspiring post from me. Feel free to like and share this site with others.
Yours sincerely,
Aminu Sule
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