This is the concluding part of this article. If you have not read Part 1 of it, please go here
Habit #3 Have A Monthly Budget
After you have planned your finances and laid out a clear vision for where you are going, it’s important that you break the plan into small bits based on your current financial situation. That’s the best way to eat an elephant after all.
Planning your monthly expenditure before you receive your income makes it easier to make the best use of your money to support and achieve your vision.
Your budget will reveal where your money is going. It will show you what your spending habits are. This will make it easy for you to know what adjustments you need to make moving forward.
Habit #4 Improve Your Skills, Everyday
This is one of the most important habits you can develop that will seriously affect your finances.
In today’s technology- driven society, skills and even whole occupations are getting outdated by the day. You don’t want to be left behind and looking for how to generate income with your skills to no avail.
You want to be in-demand at every point in time.
By so doing, your income never runs dry. There are new areas popping up in every industry. So you need to be on the lookout for how to improve your current skills and put yourself in the top ten percent of top performers in your industry.
Some whole courses can be taken online for free. There are also paid ones. If you find them important enough to advance your career, don’t hesitate to take them.
Habit #5 Buy Assets, Not Liabilities
One of the biggest reasons most people struggle with money is what they spend their money on, not even how much they earn. Most people use their money to buy liabilities without even realizing it.
Liabilities by the way refer to things that take money out of your pocket on a daily, weekly or monthly basis. It could even be any other period of time. But the bottom line is that you do not get money back for the expense. They are the exact opposite of assets.
Assets are things that put money into your pocket on a regular basis. For any amount of money you spend on your assets, they yield a return. For some assets, you spend once to acquire them and continue to get paid for life. Continuously invest in such assets.
Habit #6 Make Investing A Lifestyle
This right here is one of the most distinguishing factors between the rich and the poor. Two people can start at the same financial position today and in ten years, they are in totally different positions; one is rich while the other is poor.
We’ve seen it many times: a person that was doing very well and seemed to have everything going for them and bang! Something happens and they begin to spiral all the way downward, and nothing can stop them now. Whatever they do things just keep going all the way down. And they have nothing to hold on to.
Those, my friend are people who do not invest.
Some people spend all their money on possessions to keep up with the Joneses. They forget that that same money can be invested to bring them more money in future.
Assets you need to invest in include:
- Land
- Property
- Business
- Stocks
Habit #7 Aim For Passive Income, Ultimately
This should be your ultimate aim as you’re not going to work all your life, at least not at the same level you do today.
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But how can you achieve it? Through your investments of course. That is why you need to take investing seriously.
There are several other ways to earn passive income that you can explore. But generally, establishing and building a successful business is one of the very best, if not the best.
Imbibe these habits and you will not have any reason to worry about achieving your financial goals because you will more than achieve them.
