18 March, 2023
In the world, there are several examples of people who make a lot of money establishing startups, creating apps for the Internet, writing best-selling books, or running innovative businesses.
Most successful people reach the goal of accumulating wealth through smart investments and proper savings strategies, actually.
They don’t waste money on goods and services that offer little in return.
7 Good Financial Habits to Adopt
Successful people are planners, and impulsive purchases tend not to combine with this aspect.
If you’re about to purchase something you don’t need, wait it out and see how you feel the next day. This will help you stop impulse buying, and you’ll notice you won’t want a lot of things after thinking about them for a day.
Here are a couple of things you can ask yourself during this “wait it out” period:
✔ Do I need this?
✔ Will I still be using this a week, month, 6-months, a year from now?
One of the favorite quotes by the successful investor Warren Buffett is: “If you buy things you do not need, soon you will have to sell things you need.”
Having a plan for your money is arguably one of the best financial decisions to take.
Your plan starts with thinking about what you want to do.
✔ What goals do you have?
✔ Do you want to travel?
✔ Do you want to buy a house?
✔ Do you like to own a business?
Being successful, whatever that means to you, starts with a clear idea of where you want to go and then planning to get there.
However, just creating an initial plan isn’t enough. It’s equally important to make sure you’re reviewing and updating your plan regularly.
Your financial plan takes a snapshot of your current financial picture, along with your goals, to help you create an action plan so you can take financial decisions with ease.
You should update your plan whenever significant life events occur, such as, for example, purchasing a new home, renting your home to gain a passive income, or getting a new job that increases your earnings.
Make your money flow!
Successful people make their wealth flow, do not accumulate it, or keep it.
They do not put ALL their money in a bank savings account with a 0.50% average interest rate. (and negative in real terms, that is considering inflation)
They invest in something profitable, in assets working for them, such as a real estate property in a vacation destination.
There is a fundamental difference between saving and investing.
Saving: putting money aside gradually, typically into a bank account.
People save for having liquidity in the short term
◾ to buy a car
◾ to offer a down payment for a house
◾ to go on vacation,
◾ for any emergencies that might come up.
Investing: using some of your money to reach a long-term goal, such as
◾ increasing your wealth
◾ generating a passive income over the years
◾ for your retirement
The right choice for your short-term goal could be a savings account, but you’ll earn a lower return than investments, sometimes even without interest. It is only useful to park the money for a very short time.
To reach your long-term goals, invest by buying assets that might increase in value, such as stocks or real estate properties.
Setting goals is a priceless skill that will take you far in life, including financial success.
Build your S.M.A.R.T. financial goals: Specific, Measurable, Achievable, Relevant, and Timely.
◾ Pay off $25,000 of debt in 7 months
◾ Make $10,000 from a rental property in one year
◾ Increase wealth by $30,000 this year
Each goal is measurable and time-bound. They are also specific and relevant to financial success and not impossible to achieve. These examples are much more powerful than vague goals such as “pay off debt soon” or “make more money.”
If you want to build wealth, make more money monthly with passive income.
A few examples of passive income include rental properties, dividends from stocks, or a side business.
An emergency fund is essentially an amount of cash that you can use in the short term for unexpected expenses.
Did you know just 40 percent of Americans can cover an unexpected $1,000 expense?
Financial experts suggest setting an emergency fund that covers three to six months of living expenses.
It could be better not to carry debt on things like cars or boats, to avoid paying years of interest on something that quickly depreciates. Unlike buying real estate properties in a high-growth tourist destination (like Riviera Maya), characterized by a virtually secure appreciation over the years.
Thus, it might be an excellent decision to carry a mortgage on a property. This is especially true in this current low-interest-rate environment.
WHAT ARE YOUR FINANCIAL HABITS?
Discover them by answering some brief questions.
✔ Do you have money deposited in a bank account with little or no interest?
✔ Would you like to use your savings to earn a passive income?
✔ Would you like a double-digit growth in your wealth?
If your answer is YES, start your financial future TODAY at mayaocean.com.