Here are 5 Money Habits you need to adopt right now to take back control and start building wealth.
1. Spend Less Than You Earn
The basics of building wealth are pretty simple. Earn Money, Spend Less than you Earn, Save & Invest. This sounds simple, but many people fail to put it into practice. Spending Less than You Earn is one of the most important financial habits you can adopt. If you don’t you will never get ahead and you will continue to live paycheck to paycheck, worrying about money. The reason so many fail here is that they never take the time to analyse their financial habits by tracking where they spend their money. We are constantly bombarded by marketing messages persuading us to spend money on things we don't want or need. And with the advent of Buy Now Pay Later, we are even being encouraged to spend money we don't have.
2. Track Your Spending
It is amazing how easy it is to blow your money each month without realising where it is all going. Spending is easier than ever with a simple swipe of our contactless cards. It is even more important now, with the cost of living increasing. That’s why you need to take the time to track where and how you are spending your money. To keep more of what you make, you need to know where it is going. I personally recommend online tools such as Mint or an Expense App called iExpensit which allows you to track spending easily. Once you know where your money is going, you will be able to review your spending and cut back on unnecessary impulse purchases.