One cannot succeed without knowing his/her own strengths, weaknesses, and, more importantly, habits. There is a constant need to reflect on a person’s way of living as it can greatly impact his/her happiness and security. Consequently, the right habits must proceed, while faults must be corrected. By forming unbreakable financial habits that help save more of your income, you can retire at a much younger age and live your desired lifestyle with complete and utter freedom. Here are five simple habits that can be powerful when leveraged properly.
Pick a Schedule of Spending
Purchasing groceries at specific times allow great savings. For instance, directly after holidays there are cheaper goods and high discounts which apply to small and large items. According to RentHop co-founder Lawrence Zhou, the rent cycles also has a season and he suggests moving during the winter time when the apartment market slows down. Furthermore, he says that this is a trend that applies across the country. He added that prices can be cheaper up to 10 to 15 percent.
Keep Away from Trickle Charges
Just by being plugged in, appliances are costing money. According to Suzzane Jones, Vice President of Association of Energy Services Professionals, electronics are the main source of unnecessary charges burning about 100 billion kilowatt hours, that translates to $10 billion wasted annually. This drain can be ceased by using smart power strips that detect when your electronics are not in use. Ultimately, this can save about 6 to 7 percent on your annual utility expenses.
Set Your Goals
Knowing what you want to achieve gives a better chance of reaching it. A study reveals how goal setting improves the motivation of athletes and this applies not only to them, but to everyone. It is highly suggested to create at least a five-year money savings goal because this will definitely serve as a trigger to inspire a person to strive and achieve it.
Contrary to what many people try to portray, the richest of the rich do not live ridiculously lavish lifestyles. They tend to live very frugal lifestyles, sometimes spending less than most people. They are not flashing their money to the public. According to Thomas J. Stanley, a best seller author, in his two decades worth of survey and personal interviews, he found that much of the wealth in the United States of America is the result of hard work, diligent savings, and simple living. The majority of the world’s billionaires do not act like they can buy everything and so there is really no point in showing off when the pocket is thin.
It is very important that you know what you are dealing with before you jump right into it. The internet has given people the power to gain information that is necessary to make educated decisions. This applies not only to formal research but also to daily life. For instance, when going to a restaurant, be sure to check the price list beforehand. Keep in mind that not all fancy things are worth it but some affordable goodies can be gems when found.
Often, people forget that getting rich or saving up enough money to retire does not happen overnight. It does not matter if one opts for an automatic savings account or a good insurance if the person does not develop a habit of leveraging his/her hard-earned cash.