Little Habits, Big Results

24 March 2024, 11:50 pm

Little Habits Big Results

The benefit of successful financial habits

It used to be said if you took care of the cents, the dollars would take care of themselves.

The same can be said of actions.

Little things repeated can add up to a big result if you are consistent in your actions.

It might even be a universal truth of life that big outcomes aren’t all done in one leap, they are the function of many many repetitions of the same successful actions.

In our Successful Financial Habits workshop, we talk about putting in place little habits about managing money, which can eventually lead you to successful wealth creation.

In this article, we’re going to discuss 5 of these habits and their use.

1.Set & Reaffirm A Realistic Goal Due By A Deadline

Research suggests we are a whopping 40x more likely to achieve our goals if we write them down and put in place actions to achieve them.

There is nothing more motivating than a well written goal that inspires you into action. Written well, and acted on, a goal is more than the end result.

It is a guidepost that you can use to measure your progress. It is an absolute outcome that can be broken down into smaller chunks or milestones, each of which is an indicator of your journey on the longer road.

We highly recommend you set a realistic goal for yourself and put a timeframe on it.

2. Create & review your budget

Some people may get a cold shiver at the word ‘budget’. It can wrongly be viewed as having a lack of money or no ability to spend.

The actual definition of the word budget is “an estimate of income and expenditure for a set period of time.”.

A budget is a tool that you can use to set goals for income, set policies for what you are going to spend, and how you are going to manage the difference between the two.

Our ability to maximise our income and control our expenditure is what contributes to our ability to build a long term reserve, or wealth.

Knowing where you stand at all times as to what money is coming in, what money is going out, and how you are managing is crucial to long term wealth creation.

Little Habits Big Results

3. Set an investing obligation

People often don’t consider putting their investment goals into their budget as an obligation.

Just like you have to pay the mortgage, rent, insurance and food bills amongst other things, if you gear yourself to be obligated to put money into investments just as if it was a bill, you’ll be amazed at the difference this can make to your progress towards your longer term goals.

Having your investment obligation as a priority that you commit money to before enabling discretionary spending (those things that you have a choice about spending like takeouts, shopping, entertainment etc) ensures that you are committed to your long-term goals and won’t be hindered any frivolous wastage.

Investing is often about time in the market, not when you buy or sell something. And often waiting for a big chunk of savings to be available to invest is a far inferior approach to investing small amounts over a longer period.

4. Manage Your Financial Obligations

Keeping your obligations is so important to long-term wealth generation. Being disciplined about this buys you time and trust.

It also will generate an excellent credit rating that you can draw on when the time comes to borrow to invest. More than that, it means you are keeping up and not falling behind.

Obligations not met can build to a point where all you are doing is just handling past obligations, which means the present is painful, and the future hard to create.

5. Create & update your Chart Of Wealth

Who doesn’t love a good chart!

A chart or graph of progress is not only a pretty picture, it is also a constant reminder to you of your results and progress towards your goals.

Track such things as your bank balance, the value of your investments and the paying down of debt.

With a good graphic you can immediately see if you are behind, at, or ahead of where you wanted to be at that point in time.

We recommend creating a graphic that inspires you and informs you at the same time.

Call us to organise a no-obligation chat to find out more about the habits that will lead you to financial success.

Little Habits Big Results

Call (03) 9017 3235 or email better@finwellgroup.com.au today.