What are the best financial habits to have!

The other day, I was thinking that there are many reasons to invest, including education, retirement, holidays, or a significant purchase. But as an individual, how can I improve my life and financial habits that have nothing to do with money?

Life is well made, and I come across this article from Fidelity Investment: Enjoy reading!

Better financial habits that have nothing to do with money

Some daily habits have nothing to do with money, but they can greatly improve your relationship with it. Moreover, most of them will improve your life in other ways.

Show gratitude

Financial gurus often give this advice, but in practice, it's not always easy. It's challenging to be grateful for what you have when you have little. Personally, I started by being grateful every time I paid a bill because I could do it. I used to consider myself "broke" because I couldn't afford luxury items, but at least I could pay my electricity bill. In my opinion, I could be grateful for that.

Practice stoicism

Sometimes, you need to learn to accept both the negative and positive, whether it's about finances or anything else. Learning to be comfortable with your current situation and knowing that it will eventually pass is sometimes the best thing we can do. It's no coincidence that wedding vows assume that over a lifetime, we will experience "for better or for worse." Unless born into extreme wealth, most of us will experience periods of abundance and lack. Accepting both with a degree of stoicism can help.

Find your tribe

Facts show that your spending habits are influenced by your friends, and I've seen how this applies in practice. I spend less now that I've found my true tribe: a group of friends who share values unrelated to money. This doesn't mean they all spend frugally or that we never go out for fun. It simply means that our group of friends doesn't value extravagance and doesn't spend just for the sake of it. Find a tribe like that, and you'll inevitably spend less time on money and more on other things.

Many of our purchasing decisions are now made online, and statistics show that over 70% of buying decisions are influenced to some degree by social media. This represents a lot of spending that you might not have considered without this influence. For many of us, limiting social media consumption is equivalent to limiting overall consumption.

Self-awareness

It took me about 40 years to realize that I don't like shopping. I don't like malls, department stores, or crowded downtown areas. In fact, I don't like crowds at all. I used to scoff at the saying that the best things in life are free. Often, that's not the case, but surprisingly, I've come to realize that many things I love to do are genuinely free or don't cost me much.

Embrace minimalism

Living a minimalist lifestyle means different things to different people, and it's up to you to set your own criteria. However, if you adopt a more minimalist approach, you can save a lot of money. I applied minimalism not only to my possessions but also to my social life, leisure activities, general commitments, and beauty routine. Every time you "strip down to the essentials" in any aspect of your life, you'll save money, as well as time and energy, which you can often use more effectively elsewhere.

Prioritize personal development

We are not defined by what we own, contrary to what society and big businesses often try to make us believe. Our personality, actions, learning, and behavior define us. By seeking to improve myself as a person, rather than seeking to acquire goods, I changed my priorities, put an end to impulsive spending, and improved my life and financial situation.

What habits have changed your mindset about money? What other changes have you noticed?

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Written by: Karen Banes

Source: Wealthtender