The Ten Habits That Lead to Financial Success
You are a product of your habits. Bad habits lead to undesirable outcomes. Good habits lead to success. What about the habits for financial success? Well, there are 10 of them.
Habit - Use Debt Responsibly
Debt is not a bad thing when used responsibly. If the debt payment does not put any pressure on your finances or limits your freedom, the interest rate is reasonable, and you know without a doubt how you are going to pay it off, it is responsible debt.
Habit - Tithe and/or Give Back
In the Christian life, tithing is important for several reasons. The main reason is that it shows what you prioritize. By tithing you are releasing the need to prioritize your relationship with money. You are committing to a Mathew 6:24 life.
Habit - Track Your Spending
I don't believe in budgets. I do believe in spending plans and tracking your spending is one of the most important things you can do. It is important to learn to anticipate and prioritize your spending.
Habit – Save Something Each Month
If you are not doing so, this is an important habit to develop. Saving even the smallest amount is where you start.
Habit – Protect Your Identity
In this day and age, it is not a matter of if you will be a victim of some form of identity theft. It is a matter of when. Be proactive in protecting your identity by at a minimum signing up for credit monitoring.
Habit – Regularly Check Your Credit Report
We live in a finance based society and that score is important. It is so easy to get errors on your credit report. Stay on top of it and make sure it is accurate.
Habit – Use Credit Over Debit for Day-to-day Transactions
Using a debit card exposes your bank account to potential fraud. Think about it. Would you rather an identity thief have access to bank account or a line of credit? With a credit card in most cases there is zero liability. That isn't the case with your bank account.
Habit - Commit Time Each Month to Financial Education
I believe most financial mistakes could be avoided. There are a lot of great resources that teach about money. Learn from others' mistakes. It is a less costly process.
Habit – Set goals for Your Retirement and Track Your Progress
It is important to know how much you need at retirement, how much you need to earn each year, and how much you need to save. This way you always know whether or not you are on track.
Habit - Live Within Your Means
One of the more critical habits of this list. If you are not living within your means, you are racking up debt.