One of the most effective ways to achieve your financial goal and get rich is to develop good habits. Here’s what you need to know:
Rome wasn’t built in a day
Acquiring good financial habits does not happen overnight. First, you need to decide what you want to change, such as your spending or saving habits, budgets, etc. Whatever you decide to change, make sure you are beginning with a small step. Habits built on small, but steady, steps take hold quicker and last longer than sudden drastic changes.
One small target at a time
If you want to become less extravagant and more careful about spending your money, start by writing down what you spend every day for a week. When you have done that, think of which of your regular purchases are unnecessary. Rather than dropping them all at once, gradually phase them out of your shopping list, one item at a time, week by week. At first this may be difficult for you, but each time you successfully save some money and reduce your spending you will find it easier to progress.
Similarly with saving, start by saving a small amount monthly, and then increase it until you are saving a sizeable amount on a yearly basis. To make sure you actually implement your savings plan, make sure to implement the habit of paying yourself first, before other bills. That way, putting money into savings will become as much of a habit as paying your electric bill.
For more about changing your habits, listen to my interview with James Clear, author of Transform Your Habits here.
Douglas Goldstein, CFP®️ is the director of Profile Investment Services, Ltd. www.Profile-Financial.com He is a licensed financial professional both in the U.S. and Israel. Call (02) 624-2788 for a consultation on how to set up your American assets to meet your financial goals. Securities offered through Portfolio Resources Group, Inc. Member FINRA, SIPC, MSRB, FSI. The opinions expressed are those of the author and not those of Portfolio Resources Group, Inc. or its affiliates. Neither PRG nor its affiliates give tax or legal advice.
Published July 5, 2016.