If you want to end up wealthy and live your retirement on your terms, you need to stop thinking big and start thinking small. What do we mean?
Having a vision for your future is important, but what you do on a daily basis is even more important. Going bankrupt or hitting millionaire status aren’t giant events. Instead, they are the culmination of doing the little things right or wrong, compounded over time.
The most successful and wealthy people always have a strong set of rituals and disciplines to acquire a high net worth. Here are the ones you should practice on a regular basis to set yourself up for a prosperous financial future.
1. Always Keep a Budget
No matter how much money you have, if you don’t know where your money is going, you’ll never be financially healthy. Keep a budget to ensure you are always paying yourself first and saving toward your future consistently.
2. Know Your Credit Score
Your credit score plays a huge role in your ability to get low-interest loan for a car, house or a business loan. Without a high credit score, it will be nearly impossible to secure a low-interest loan. Make sure you regularly use credit checking tools to ensure your score doesn’t dip.
3. Buy Quality, Not Quantity
Buy fewer things but with more intention. Focus on quality, versatility, and usefulness, instead of instant gratification. Choose quality so you don’t have to worry about repairs and replacements in the future.
4. Spend Based on Your Goals
Think of your spending in terms of goals and make your day-to-day decisions based on the long term vision for your future. A Starbucks coffee every day or a fun weekend away with family in a few months?
5. Reward Yourself For Good Money Habits
Make indulgences and splurges a part of your financial life. Treat them as the rare, exciting thing they are. Too many treats aren’t treats anymore, they’re a lifestyle.
Besides, what’s the point of working hard only to never spend any of your hard earned money. Even a great diet is rewarded with a cheat meal. Don’t be afraid to splurge on a luxury item to keep yourself motivated to keep earning and saving money.
6. Diversify Your Income
If you are fully dependent on one income it’s a risky move if something happens to your job. Don’t put all your eggs in one basket. Find ways to diversify your income to earn more money and lower your dependency from a single income.
7. Set Financial Goals
Ask where you want to be in six months, two years, and ten years. Ask yourself what you can do today to make it happen.
Remember that happiness is a byproduct of freedom. Work to give yourself options in the future, not things.
8. Don’t Feel Guilty About Spending Money
Just like eating a slice of cake doesn’t ruin a diet, spending too much one weekend doesn’t ruin a financial diet. Guilt isn’t productive, but getting up and doing better tomorrow is.
Would you like to learn how to achieve your best financial future? Simply request a call from a Bayntree financial advisor today.
Bayntree Wealth Advisors, located in Phoenix and Scottsdale, Arizona, provides comprehensive financial planning and wealth management. The Bayntree team specializes in all aspects of financial health, including retirement planning, risk management, investment advice, tax strategies, estate planning and insurance.
Bayntree does not provide specific legal or tax advice. Please consult with your tax advisor or legal professional for guidance with your individual situation.
