We work on our health daily. We work on our mindset, our professional development, and our careers each day, but how many Americans work on their financial fitness daily? Money is one of the most intimating, yet widely sought-after, resources of our time. We see it in society every day and in our social media feeds minute to minute. How much time do you devote to understanding your money and what it means to you? It is not the thing keeping you from a life you wish you had; it’s the tool you need to learn how to properly apply.
The most interesting myth about money is, “More is better.” I know, we all would like the opportunity to prove that wrong, and everyone has their own unique set of circumstances, but let’s first be honest with ourselves. We all suffer or have suffered from financial envy and lifestyle creep. First, you see your coworker in that shiny new car with all the buttons. You smell the new car smell; you feel the leather and the massaging seats… You’re hooked. BAM! Financial envy. The second is what I like to call lifestyle creep. You know—when you start making more money thinking that will solve all your financial woes, and then all of a sudden it’s a year later, and you have no more in savings and are surrounded by stuff, most of which you don’t even remember why you bought it. Your lifestyle has creeped to a new level, and you’re no happier.
The feelings of being trapped and intimidated by money are common but there are, however, a few absolute habits you can incorporate into your day that can ultimately lead you to real wealth on your terms.
Habit 1: Track it. If you don’t know what you have, where it is, or what the purpose is, then how do you expect to control it? Money is coming in and going out of your bank accounts, retirement accounts, and servicing loans. Step one is simply compiling all that data into one place. The pen and paper always work, but there is a plethora of aps on your phone, for free, that will aggregate all your financial data. Don’t do anything different; just track it daily. How many times a day do you log on to Facebook? I think you can log on to your finances at least once!
Habit 2: Pay yourself first. If you are going to work 40+ hours a week, you deserve to pay yourself at least one hour of your daily pay. Have you used the tools at your disposal? Your retirement accounts at your job are usually the first and easiest place to start. Maximize them. If you do not have an option at your job, then save in a simple bank account to start. This is first—before the bills, before the groceries, and before the fun.
Habit 3: Automatic Saving. The automatic savings transfers we can do online now are essentially taking all the “work” out of saving. Set up an automatic transfer from your paycheck to a separate bank account each pay period, or even daily! What if you moved $3 a day to your savings? It sounds silly, but at the end of the year, you would have $1,095.
My wish for you is you become filthy rich. Rich in experiences, in life, in love, and living on your own terms. Stop comparing what you should have, and start by taking excellent care of what is already surrounding you.
