How to create positive long-term financial habits

Jessica Dosseh

If you have bad financial habits, it's important to question your relationship with money. Working on your finances can be a long process; nevertheless, you are capable of reaching the goals you set for yourself. Take the time to understand the habits that are currently holding you back and take the first step to change those habits. The smallest effort can go a long way.

Create positive long-term financial habits

There are so many ways to think about your financial health, habits, and perspective on money. You've probably heard what you should and shouldn't do a thousand times, yet being financially disciplined can feel like one of the most challenging things.

Working on your finances can be a long process; nevertheless, you are capable of reaching the goals you set for yourself.

List of advice you've probably heard a thousand times.

If you don't know how to save, invest and multiply what you make, you are unlikely to achieve long-term financial growth regardless of how much you make.

Here are some financial habits to consider:

  • Have a long-term perspective.

  • Allocate time for your finances.

  • Create & maintain a budget.

  • Start a savings plan.

  • Plan for emergencies.

  • Minimize unnecessary expenses.

  • Stick to your budget.

  • Track your spending.

  • Clear your debts.

  • Build your credit score.

  • Pay yourself first.

  • Invest in yourself.

  • Learn smart ways of investing.

  • Live below your means.

  • Plan purchases & avoid impulse buys.

  • Avoid emotional spending.

  • Plan your meals.

  • Practice moderation or minimalism.

  • Avoid credit card debt.

  • Pay bills on time: automate it.

  • Start a side hustle, and build passive income.

  • Build assets, not liabilities.

  • Track your progress.

  • Learn from your financial mistakes.

  • Reevaluate your role models.

  • Reward yourself.

You have already overcome the hardest step of developing better money habits by realizing that something needs to change. Whether you start slowly by changing one thing or trying out a couple, implementing something new, or reworking your spending, saving, and investment routine can help you get used to creating a better future for yourself.

Question your relationship with money.

If you have bad financial habits, it's important to question your relationship with money. It's true that we need money to live, but we don't have to define our existence based on the amount in our wallets.

It's not easy to say out loud that there is a problem, but it can be even hard to take time to do something about it, especially when avoiding the situation feels like a better option. Unfortunately, the only thing you are doing by avoiding the problem is wasting time and digging a deeper hole.

The one thing many of us lack when it comes to our finances is transparency, relatability, and an active discussion on the ins and outs of money. If you can't ask yourself the big questions, it might be wise to talk to a financial expert and find a group of friends or people you trust to talk things through. The more you talk about money, the more you start to understand how it works and how to better use it.

Signs and Topics worth discussing out loud.

  1. You're not healthy, whether mentally, physically, or emotionally. If you can't take care of yourself, you will never be able to take care of the other aspects of your life. It's okay to find and ask for help.

  1. Your relationships are suffering. Build healthy support systems to talk through financial issues. The people in your life are there for a reason, so don't abandon them simply because of money.

  1. You argue over money. Financial hardship can be painful, but getting angry at the wrong thing will always make it worse.

  1. You have student-loan debt. What matters is education, not institution, and plus; you don't have to finish school in four years. There is more than one way to get an education; sometimes, it's worth taking your time.

  1. You're not growing. Invest in yourself. The more you know, the more you grow.

  1. You have credit-card debt. There's no such thing as "good" debt, especially if you don't know how to leverage it.

  1. You have a monthly car payment. Do you need a car, or do you just want a car? Depending on where you live, public transportation can work just fine.

  1. Your income dictates your lifestyle. Just because you have money doesn't mean you need to spend it. It's okay to reset your priorities.

  1. You aren't saving for the future. You only need to save a little at a time. A dollar a day to start is okay.

  1. You don't contribute as much as you'd like. Your worth isn't determined by your net worth. Expand your day-to-day, perspective, and interest. It might just help you discover new ways to reach your goals.

Building good financial habits might take a lifetime, and you won't always get it right. No one ever really get's it right, so all we can do is try to do better whether alone, but even better together.