5 Financial Habits You’ll Wish You Would Have Formed Years Ago

Think a lot about the future. Many times, if you focus on the future, the present will take care of itself. Here are some financial habits you’ll wish you would have started now, 10 years from now. Or, you could just start them today. Make the right choice, and you’ll be well on your way to financial freedom.

1. Make and maintain a system that keeps your spending under control.

Okay, I’ll just say it: Make a budget!

I was afraid I’d lose some of you mentioning the “B” word. But in all seriousness, you really do need a budget.

If you want to do better with your finances than the average person, all you have to do is a budget. Really! Most people aren’t taking this advice, but those who do will accumulate wealth pretty quickly – that is, assuming that they have at least a decent income.

That leads me to my next point . . . .

2. Constantly seek higher paying opportunities.

Minimum wage is okay, only if it’s temporary – very temporary. Your goal should be to produce residual income, or at the very least high-paying linear income.

Residual income pays you over and over (and over again) for one task.

Linear income pays you once for one task.

It’s as simple as that.

Brainstorm what kind of activities will lead to residual income, and which ones won’t.

3. Be weird: Get rid of those credit cards and live without them.

Living debt free is a habit you’ll need to get into in order to be financially successful. For many people, keeping a credit card or two, or three (okay, many people have eight), is a temptation waiting to cause your downfall.

Instead, I carry a PerkStreet Cash Back Debit Card. It’s nice, because it has competitive rewards and I’m spending money I’ve already made.

4. Get in the habit of investing once you’re ready.

You shouldn’t be investing under certain circumstances. But when the timing is right, it’s best to invest. If you shouldn’t be investing now, make sure to have a plan of when you will start investing.

You could use a variety of mutual funds for your investing; or, if you want an easy way to invest, you might try Betterment.

5. Take time each day to learn something new.

Learning should be a part of your day, every day. Read books, watch seminars (try TED), read blogs, and talk with people you admire.

If you can take up each of these habits, you’ll one day look back and be happy you took responsibility for your financial wellbeing and live like no one else! What are some more financial habits people should take up?