Simple Money Habits That Will Help You Maximise Your Wealth

Successful businessmen and millionaires follow certain simple habits to maximise their wealth.

From childhood, we are constantly asked to keep our nails clean, drink a lot of water, brush our teeth twice a day, and respect elders. As kids, we all have questioned the need for certain habits like going to bed early. We felt these advices were pointless and rigid. We couldn’t understand why our parents constantly asked us to cultivate healthy habits. But, as we grew up, we understood the benefits of such practices. Likewise, there are a few financial habits that will help you build and maximise your wealth. Many successful businessmen and millionaires have followed these simple techniques and have created history in the past.

 
Start working early
By the time youngsters in India graduate they are in their early twenties and then they start applying for their post-graduation program. If you wait for your formal education to get over to start earning, you will lose out on a lot of time. Consider freelancing when you are studying. The earlier you start earning, the better. There are many ways you can earn a little money even if you attend a regular college. If you are good at anchoring, marketing, designing, writing, or tutoring, try making it your part-time job. You will be surprised when you earn enough to pay your tuition fees!

 
Automate your bills

When you take a personal loan, your EMIs are deducted from your bank account automatically on a certain date every month. Automating your bills eliminates the risk of forgetting a payment and avoids late charges. This way you will not be left with excess money in your bank account which you can easily withdraw and use it for something else. To maximise your wealth, make sure you set-up standing instructions for your recurring deposit, EMIs, utility bills, and other such expenses. You can also set-up standing instructions to transfer a certain amount to another savings account every month. You can use this fund during a financial crisis.

 
Track your expenses
Tracking your monthly expenses will take you a long way when it comes to your financial health. People who record their expenses every month tend to be aware of their financial condition and often end up saving more than others. Closing your eyes and blindly spending money every month will one day make you bankrupt. Maintain a diary, download an app, or create an excel sheet. Do whatever it takes to track every single expense even it seems petty. There are many personal finance apps available that allow you to track your expenses, set a budget, and also alert you if you spend more. If you are someone who needs to be reminded to not spend more, try using one of these apps. Make use of technology!

 
Come up with a budget
Utility bills, house rent, and grocery bills are some of the expenses that you will incur every month. Based on your regular expenses come up with a monthly budget and stick to it. Make sure your budget includes your monthly savings like a recurring deposit. This way your savings for the month is sorted.
 
Set specific money goals
When you want to save money to buy a thing that you love the most, the chances of you breaking the savings is less. If you are someone who always breaks your savings to go shopping, setting a goal might help. Ask yourself what you want to save for. Whether you want to take that international vacation or buy a new car, go for it. Write down your goal and start saving for it. You can also write your money goals on post-its and stick it on your bedroom walls or office desk to stay focused.

 
Make your savings grow
Once you have saved a decent amount of money, consider investing it. You can invest your money in mutual funds, fixed deposit, Public Provident Fund, Equity Linked Savings Scheme, stocks, bonds, or post office saving schemes. Do not let your savings sit idle. Keep investing your savings in schemes that will help you maximise your wealth.
 
Say bye to credit cards
Credit cards aren’t bad. They are good if you use it wisely. Saying bye to credit cards means that you are not spending the money that you do not have. This is a very important habit to cultivate if you want to be financially fit. Always spend the money that you have. While swiping a credit card and paying the balance in few months may sound convenient, it attracts high interest rate on your daily balance. Use your credit card if you are able to pay the entire amount within the due date which is usually within 29 days. This way you will not be paying anything extra. Otherwise, say bye to credit cards even if it is cool to carry one around.

 
Stop buying coffee outside
This may sound silly but if you are someone who buys coffee and breakfast outside every day, consider having a homemade meal. Many people order food every day as they cannot cook at home. Though this looks like a petty expense that doesn’t need to be tracked, it makes a huge difference in the long run. For example, if you spend Rs.150 for coffee and breakfast every day which is a very nominal amount considering how expensive food bills are these days, you will be spending Rs.2,70,000 in 5 years. Please note that this amount does not include your lunch and dinner bills and your weekend party expenses. Try making simple meals and avoid eating outside every month and save that money in a piggy bag which you can use as an “Emergency Fund”. This habit will not only help you save few extra bucks but also improves your health.

 
Read, read, and read
One trait that is so common among successful people is that they read. Allot at least 30 minutes a day to read an article or a book that inspires you to be in good financial health. Reading helps you learn about different strategies you can use to maximise your wealth. It keeps you updated, informed, and increases your confidence. Acquiring wealth and staying rich is not an easy job. It requires one to constantly reassess their position and invest more. Reading helps you make better investment decisions.
 
The bottom line
All these simple financial habits may seem difficult to implement but when followed, it can change your life for good. Take one step at a time and try developing these habits. It may look impossible and you may give up a few times but it is worth trying. Telling yourself that you deserve to be rich always helps. Want to try?