Consistency is the key to unlocking life-changing financial habits. Those of us who dream of saving more in our sleep can’t imagine not putting money aside for an emergency. For others, it’s a struggle for a number of reasons:
- They never learned from their parents how to manage money.
- They don’t have enough income to cover their major expenses.
- They are taking care of other members of their family and that doesn’t leave room for them to save.
- They care too much about what people think, so they overspend to impress.
- They don’t see the point of denying what they want in the present to save for the future since tomorrow isn’t promised.
The ability to understand and effectively use various financial skills, including personal finance management, budgeting, and investing. It is unfortunate that these skills weren’t taught to us in school. I just so happen to have grown up around my family’s business where they all do taxes. These things come naturally to me. If you never learned how to create a budget, learn. It is never too late to learn a new skill.
Here are some books I recommend reading:
- Rich Dad, Poor Dad by Robert Kiyosaki and Sharon Lechter
- The Total Money Makeover by Dave Ramsey
- Transforming Your Relationship With Money by Joseph R. Dominguez, Monique Tilford, and Vicki Robin
It is crucial to review the previous month’s budget to stay consistent with it. You need a solid monthly/weekly routine so you can be the most consistent with your financial wellness. Every month brings new expenses and a different set of priorities on where to spend your money. Checking in with your budget allows you to project any new expenses for the coming month and reallocate your income if necessary.
If your income is too low to cover your expenses then I suggest digging deep and finding a new side hustle or turning a hobby into a job where you can earn some money off of doing something you love. You can really get creative when it comes to increasing income.
Here are a few examples:
- Sell Stuff Online
- Drive people around
- Become a virtual assistant
- Negotiate Salary
Change Your Money Habits
Consistency plays such a huge role when it comes to achieving any type of success. I’m sure you can imagine that consistency is a key factor in the area of your finances too. Your money habits are formed based on how you constantly handle your money from saving to spending. As simple as that sounds, you might not have considered how consistency affects different parts of your life.
With any habits, money habits can also be good or bad, so in order for you to achieve financial freedom you obviously need to be consistent with good money habits. Good money habits have to do with both saving money but also how you spend it. If you’re not consistently saving money then you are probably consistently spending it. It’s the consistency you have with both of those things that will determine your financial success.
Be Rich, Don’t Look Rich
Trying to impress people is pointless. Most people never become wealthy because they waste too much money on buying symbols of success. They are more focused on looking rich instead of becoming rich. Living below your means and investing your extra income is how you build wealth. No matter how much money you make, you must spend less than you earn. Don’t be in a rush to look successful. Don’t fall into the trap of pretending to be rich.
The longer you practice consistency, the more automatic it becomes. You need to build good money habits and ask yourself if you are consistently frugal or consistently careless.
Here are some ways to stay consistent with your finances:
- Automation- Auto payments for bills is a super easy way to achieve consistency in your personal finance life
- Calendar reminders- Setting a simple reminder on your phone’s calendar can help provide consistency in tasks as well
- Budget apps- Utilizing an app for your budget can help you stay consistent with checking your budget monthly
Check out the FREE video series on my 3 Keys to Unlocking Your Financial Freedom! This video series touches on Budgets, Tackling Debt, and Ways to Increase Income TODAY! I created this series for those of you who have been hit hard by COVID-19. I want you to know there is nothing you can’t accomplish and creating a plan of action is always a great starting point.