Handling money isn’t something that is taught in school – though it should be! Learning how to manage your finances and grow your accounts is something that comes with a lot of trial and error. So why not learn from the ones who have been really successful in this area? Take a look at these 7 money habits that have been commonly used by millionaires.
1. Live Below Your Means
You need to make sure you have more coming in than what’s going out. A common error people have is living paycheck to paycheck – you’ll never save and build if you don’t leave a little aside every month. For me, I find automatically transferring part of my income into a savings account, an effective method.
2. Set Financial Goals
If you don’t know where you want to go, your path will be chosen for you. So write down all your financial goals and start making a plan to get there. Even if the plan isn’t well thought out, as long as you know where you’re going – you’ll make the right decisions to get where you need to be.
3. Prioritise Your Health
You can’t make more money if you’re unalive. Make sure you’re healthy and active. Staying healthy keeps you going for longer AND gives you that extra energy to get the job done. You’ll feel so much better for it.
4. Avoid Consumer Debt
There’s an overwhelming amount of buy now pay later schemes and, especially with Christmas around the corner, can seem verrry tempting. But don’t. If you don’t have the money to buy it now, then don’t buy it. Consumer debt can pile up very quickly and it will feel like you’re drowning in it.
5. Have Emergency Funds
This is essential. With inflation up and down, viruses, car breakdowns and surprise fines, you need some backup money to help keep you afloat. We always recommend at least 6-12 months to see you through.
6. Create Multiple Income Streams
Don’t put all your eggs in one basket. If one income stream suddenly does dry, you’ll be left with nothing. But this doesn’t mean having multiple jobs. Think about how you can make extra money from what you’re doing already. Are you a plumber? Maybe you could start offering Facetime consultations or training apprentices. Are you a baker? You could release a cookbook or start your own YouTube channel. The possibilities are endless.
7. Automate Your Finances
Making sure your finances are secure and automatically going where they’re supposed to go saves you a lot of time and takes away any emotion – something that will be a weakness when it comes to growing your accounts. If you’re not sure how to begin automating your finances, seek professional advice by contacting us.
At Kara Accountants, we get to know your business and support you wherever you need it. Contact us today for the help you need.
if you have any questions.