Outlook Money
Most people believe that earning more money is the key to financial success. It’s not. What truly builds long-term wealth are the money habits you practice every single day. Here are 10 habits that wealthy people have.
Avoid spending on things that disrupt your budget and are a load on your pocket. It is not about being cheap but making conscious money decisions.
As soon as you receive your paycheck, transfer a set amount into savings or investment accounts before paying for other expenses.
A budget acts as a roadmap to where your money goes and where it should ideally go. Maintaining this makes sure that you are aware of your expenditure.
Try to pay off high-interest debts, such as credit card balances, loans and pre-existing EMIs.
Life is unpredictable and you must safeguard yourself. Create a fund which can sustain you from three to four months without any active income.
Saving is not enough, you must make your money work for you. Invest and diversify your portfolio. The earlier you start the more you get back, that's how compounding works in your favour.
Resist the urge to spend more as your income increases. Direct the majority of your income towards savings and investments to accelerate wealth building.
Don't ignore learning financial literacy. The more you understand personal finance, taxes, and investing, the more you can avoid loses.
Don't make vague aspirations, set a clear intention, number or goal and time-bound them. This gives motivation and direction to you.
In order to avoid impulsive spending, differentiate between needs and wants. Practice delayed gratification, this makes sure you don't end up with another credit card spending.