Reaching Your Goals With Better Money Habits

“Change might not be fast and it isn’t always easy. But with time and effort, almost any habit can be reshaped.” Charles Duhigg

Having better money habits can help us achieve our financial goals. This article will help you understand how to have better money habits using discipline and willpower and hard work, persistence, and perseverance.

To better reach our goals, a SMART approach can bridge the gap to better habits. George T Doran first introduced the acronym in Management Review in November 1981.

The Benefits of Habits

Habits Allow Us To Be Efficient

Once formed, habits allow us to do things automatically in everyday life. Our practices begin through repeated actions that may come with rewards.

Habits May Exceed Your Goal

Goals may limit you, whereas good habits may allow us to go beyond our targets. I am at fault for setting 30 minutes as my time on the treadmill and jumping off. Limiting the time happened because I had to make a call or go to work.

Habits For Life

According to Duhigg’s research, habits control 40 percent of our conscious activities. Taking showers and brushing teeth are activities; we just do it. That’s a good thing. Our lives would be far more chaotic if we couldn’t form habits.

Keystone Habits

Building a single habit can be modeled into other practices, having a compound effect on our lives. Duhigg calls these habits keystone habits.  They are a chain of several related good practices.

Creating Better Money Habits

Spend Less Than You Earn By spending below your means, you will save and invest more. However, to accomplish this, engage in tracking your spending and expenses regularly.

Payoff Your Debt

Instead, pay more than the minimum required for a start. Slow your spending and reduce your debt. Use more cash which lets us feel that cost immediately. Ultimately, you should pay your monthly bills in total, and it provides a very satisfying peace of mind.

Create A Budget And A Net Worth Statement Create a budget so you can better track your fixed and variable costs. If costs are too high, make needed changes. Use a financial planner if you don’t think making a formal budget will work for you.

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