3 Financial Habits That Can Make You Wealthy

financial habits

Want to join the ranks of the wealthy? If so you will have to adopt new financial habits.

Here are 3 simple financial habits to implement in your life on a daily basis that will bring you tremendous wealth over time.

1. Save money by “paying yourself first”

That’s the core principle of any accumulation of wealth. If you want to earn more money on a long-term basis, you must pay yourself first. This means as soon as you get your monthly paycheck, you want to save 15% of what you’ve earned before paying any bills, insurance…

When I give this advice to people, most of the time I hear:

But I can’t save that much money! I’ve this and that to pay…

I always give them the same answer:

Imagine that tomorrow for one reason or another, your boss decide to cut your pay to 15%. You will have no choice but living with the 85% remaining and you will consequently have to change your lifestyle.

To save 15% of your salary, pretend that your boss has reduced your pay.

You can automate the process by transferring automatically 15% of your salary on a separate bank account.

2.  Control your impulsive spending

You also need to control your impulsive spending if you want to become wealthy. Things like eating outside on a regular basis, buying things you don’t need…must be controlled.

As Trent of The Simple Dollar suggests, you can create a 30-day list:

Make a new rule: you can’t buy anything (except necessities) until a 30 –day waiting period has passed. Put a 30-day list on your refrigerator, and when you have the urge to buy something, put in on the list with today’s date. After a month has passed, you can buy the item.

3. Invest in your future

The above 2 habits are useless if you don’t invest the money you save.

As I always say, saving money and keep it on a bank account is the worst thing you can do because money that sleeps = money that loses value with the inflation over time.

You need to use your money to invest in books, trainings, seminars, programs…and afterwards you will be able to invest it in businesses, real estate, stock exchange…

Always educate yourself before investing in anything.

Read also: Top 8 Books to invest in –  the last one has create more millionaires than any book in the history

As I know that as human being we really suck at making new habits stick, I’ve a final advice for you:

To successfully redesign your life, start with one single habit at the time otherwise you won’t stick to your new routine.

We’ve all done this. Waking up early, starting to eat healthy food and do some sports all at once…as a result we ended up quitting. That’s because that’s too much change.

Instead of adopting the 3 habits at the same time, make sure you’ve completely integrated the first habit into your life for 21 days before jumping into the next one.

Now I want to know, have you ever applied one of these habits into your life? If not, will you adopt them? Let me know in the comments below! (I read and answer ever comments).

Simon Cave

36 comments… add one
  • Anna August 23, 2014, 12:14 pm

    Essential advice indeed. Intuitively, I’ve recently started to implement some sort of a variation of the 30-Day rule – without even knowing that such rule existed and somebody has outlined it already:) – and, I must say, it really works and has made all the difference for me. Thanks for another great post, Simon

    Reply
    • The Becomer August 23, 2014, 12:28 pm

      I’m glad to see that you’ve already implemented one of the strategies Anna 😉

      Reply
      • isabelle September 11, 2014, 6:26 pm

        Spare 15% seems legit. Most taxed income in the world ^^

        Reply
    • Jay @ ThinkingWealthy.com August 27, 2014, 10:23 pm

      Good luck with it! I tried it and then gave up… I wanted a new watch box… I foolishly ordered one. But what’s life without a few splurges?

      Jay

      Reply
      • The Becomer August 28, 2014, 3:30 pm

        Thanks for your comment Jay. You have to define your priorities in life. If yours is to buy a new watch box then so be it 😉

        Reply
  • Stutter Step August 23, 2014, 1:07 pm

    Great ideas. I really like the posting yourself first.

    Reply
  • Romeo Jeremiah August 23, 2014, 4:25 pm

    Simon,
    I wholeheartedly believe in the invest in your future concept before investing in the markets. This can simply mean to take that first 15% and purchase books about investing (starting with The Intelligent Investor, perhaps) before actually subjecting one’s hard earned savings to something that they don’t understand. Great article.

    P.S. Also, great implementation of SumoMe. Makes me want to buy it now. If you’re going to FinCon be sure to say what’s up to Noah. 🙂

    Reply
    • The Becomer August 23, 2014, 4:32 pm

      Thanks for your comment Romeo! The number 1 rule of Warren Buffett is to always invest in what you understand 😉

      PS: Noah is a really great guy and SumoMe is a must have!

      Reply
  • Verra B. August 23, 2014, 4:25 pm

    Simon, I really enjoy reading your suggestions and passion behind all of your posts. I can actually say, that I’m on a mission to practice your “3 Financial Habits” daily. Also, I have read four of the books you have recommended. Keep up the good work.

    Reply
    • The Becomer August 23, 2014, 4:34 pm

      Thanks Verra! I’m glad you like my recommendations 😉

      Reply
  • Stefanie @ thebrokeandbeautifullife August 23, 2014, 11:27 pm

    I need to get a handle on my food spending. Living in NYC as a foodie is like living on temptation island 24/7!

    Reply
    • The Becomer August 24, 2014, 7:16 am

      Thank you for your comment Stefanie, good luck with that 😉

      Reply
  • Jonella Gavin August 24, 2014, 4:51 am

    Simon,
    Great points indeed, especially around paying yourself first. When I started in sales, I would save every bonus. I lived off of my salary. As that went up, then I elevated my living. Doing so allowed me to invest in real estate at a young age.
    The one thing I would have done differently is also investing in additional education and training for myself. Hopefully, every 20 something is reading this article!

    Reply
    • The Becomer August 24, 2014, 7:20 am

      Thank you for your comment Jonella. Education is so important! You can waste a lot of time and money if you don’t have the knowledge needed to invest. That’s one of the reasons why I created the Becomer by the way.

      Reply
    • Anna Kochenkova August 25, 2014, 9:55 am

      Yes, Jonella, a very good point about investing in self-education, which is, in the end, is “paying yourself”. And, as they say, if you want to triple your income, double your investment in self-education.

      Reply
  • Ahamdi August 24, 2014, 11:23 am

    One reason I like this post Simon is the brevity of the list (just three things to manage). A very long list would probably make the strategy to become wealthy harder to manage. I love the first habit and I’m taking it home with me; I’m definitely a great fan of the third habit and have been on that for several years and looking forward now to a greater pay day. The second habit? thank you for listing because I’ve faltered severally on this but it’s like something saying, “get it ingrained in your mind now”. I’ve saved a screenshot of post for personal reference. Thanks again and keep up the good work.

    Reply
    • The Becomer August 24, 2014, 11:42 am

      Thank you for your comment Ahamdi! I wanted to keep it short 😉

      Reply
  • Kirby @ TheSimpleMoneyBlog August 24, 2014, 2:04 pm

    Great points, and the most important one is learning to pay yourself first. It’s all about reframing your perspective such as if your boss gave you that 15% cut since that would force you to make changes. It’s much better to address it on your time than unexpectedly later! You also bring up a very good point that people should always educate themselves before investing. It’s a complex world out there, so knowing what you’re doing is very important, or hiring out someone who can help may be well worth it.

    Reply
    • The Becomer August 24, 2014, 2:49 pm

      Absolutely Kirby! Finding a mentor is also a very good way to get educated fast.

      Reply
  • Z August 24, 2014, 2:33 pm

    im a fresh grad, just started to work for bout 2 months – & i already invest some money into seminars and books. much of my income goes there. as for saving 15% of it – i tried but before long when i run out of my money again ill pull some portion out – hard for me to save (been working on that but its hard)

    Reply
  • Rudiano August 26, 2014, 1:16 pm

    Thanks for sharing! That’s a very interesting topic. Sometimes we focus on the mechanics of the business but forget our relationship to money. That can ruin all our efforts. There is an infographic I like that illustrates that. In substance it says the entrepreneur re-invests his money to make it work for him/her whereas the normal person just spends it…. Mmhhh. Got to keep working on this myself!

    Reply
    • The Becomer August 26, 2014, 3:17 pm

      Buying a brand new car or a huge TV screen is always tempting but it’s like throwing your money out of the window. Investing is the key, that’s what dramatically improves your life over time.

      Reply
  • temitope August 29, 2014, 10:17 pm

    Great points Simon. I invest a percentage of my income on shares,its not always doing this however having an accountabilty partner makes it easier.

    Reply
    • The Becomer August 30, 2014, 10:48 am

      Great Temitope! Investing is important.

      Reply
  • Chris @ CentsToMe September 3, 2014, 6:44 pm

    Awesome tips! Keep them coming!

    Reply
  • Michelle September 18, 2014, 12:41 am

    Whenever I want something, I make myself wait a week or so. If it is that important to me, then I will go back. But usually the feeling to buy will pass within a day or two.

    Reply
    • The Becomer September 18, 2014, 11:59 am

      Excellent strategy Michelle! I do exactly the same.

      Reply
  • EUGENE CHANDA November 11, 2014, 9:35 am

    GREAT POINTS AND LOOKING FORWARD TO BECOME ONE OF THE MILLIONAIRES

    Reply
  • Tre November 25, 2014, 2:24 pm

    I wish someone had given me that advice when I was 20.

    Reply
  • meskiukas November 28, 2014, 10:32 am

    Excellent article comme toujours. Un grand merci !

    Reply
  • Michelle April 17, 2015, 10:10 pm

    These are great tips!

    Reply

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