If you are still in lala-land and think you will get rich in your life by not actually improving yourself, then keep dreaming. Now, if you are person and are ready to take your financial life in your hands and develop those “rich habits” that will make you rich, then you are at a right place. No successful company is built overnight, everything takes time. For that reason I created this guide for habits to develop early if you want to be prepared for any financial difficult time.
If you are a student just like me, you will benefit by reading this post and will be extra step above other students.
Here are the Habits to Develop Early in Personal Finance that Will Make You Wealthy:
#1 Starting to Invest Money Early
Just remember, the earlier you start investing, the more money you will have in the future. Investing as young as possible is a very crucial step in order for you to achieve that financial freedom.
Even $10 per week will get you in a much better position than your peers for the future, so you are already above others.
Start low:
Start investing today with Acorns (bonus $5) that will automatically round up your change and reinvest it for you! A great company that you can read on my recent post and my experience with it.
#2 Avoid Debt like a Plague
Any accumulated debt you have will hold you back on your future to success. I highly suggest that you try and get rid of your debt as fast as possible. Unfortunately debt “interest” grows much faster than your interest on investments. It is true in this world, so firstly get rid of any of your debts as soon as possible before making decisions to start invest.
#3 Create Financial Goals
Saving money just because it is saving is practically pointless. Instead, try to create financial goals like saving for a car you have been eyeing, house, etc…
Once you have goals set, you can start putting money away in order to reach that goal.
#4 Enjoy what You do in Your Career
This is important one. You must have a career that you enjoy at least a little. Having a career or a job that you don’t like will for the most part only hurt you. If you wake up every day and thinking to yourself “again, work” or looking forward to the weekend or vacation every day at your job, then you are on the wrong path my friend. Find what you love to do and your success formula is complete.
#5 Spend Way Less than You Earn
We love having all the latest and greatest especially if we know we can afford it. But in order to become wealthy in the long term, this few hundred dollars you just spent on purchase you didn’t even need could of been thousands more dollars in 20 or 30 years.
The lesson is to spend much less than you earn. It makes sense right? But unfortunately, majority of American tend to spend more than what they earn which is the primary reason why our consumer debt keep piling up. Developing this habit as young adult will definitely put you above others in the long term which will make you feel good.
You can check out my other post on ways to make money while you are studying for a degree which will briefly brainstorm you with side ideas, starting out early and building yourself as professional individual is crucial.
Bottom Line
It is all up to you and only you if you want to become wealthy. Developing this five habits I listed here will help you to achieve the best personal financial freedom. If you are a student and are willing to develop those habit early then consider yourself above majority of people that deal with their finances.
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Richard Barnett is a student majoring in finance, entrepreneur, marketer, content writer, budget traveler, and financial blog “Student Money Adviser” owner. You can read more about me here.
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