We all enter adulthood with expectations of success and hopes of building wealth. Then for some of us, the reality is we either lack the essential tools, proper mindset or have not been taught any set of wealth-building principles. Therefore, the wrong money habits take over and in no time, we are left with that empty money bag scrambling to fill it every month.
The truth is, success and wealth are the results of planning, commitment, discipline, sacrifices, and deliberate work. There is a formula, if you start young and stay on task, wealth can still be had in America. The more insistent and diligent your wealth goal is, the faster the results.
For your next financial marathon to wealth, here are 7 personal finance habits to form in college that will make you rich:
Spend way less than you ear
This is by far the hardest habit to learn, especially in a distraught economy which doesn’t leave you so much money in hand after your earnings. Time and time again it has been said, “To pay your future self first”. But what does this mean? By holding on tight to dollars when bills need attention only can create guilt and frustration; then the dollars disappear into neither your personal savings nor the intended, necessary bill. Right? This is one habit you can change if your mindset is determined enough. See it for what it is. The bill will always be there, but so will your increasing savings. Stop believing you need everything the consumer market is pushing on you. Try being a minimalist as a new way of living; you will be surprised at what you truly need to live well.
You are young, invest that money now
Time passes so fast, and before you realize it, your 20’s, 30’s and even 40’s are staring you in the face. So what if you took an extra 20 bucks a week and turned it into something huge when those later ages hit? Or you could just spend the 20 dollars on a pizza now. And therein lays the problem. We are deeply into immediate gratification, without the foresight to cram those 20 dollars into our savings, and more willing to let it slip through our hands to something else. How many times can you remember doing this, and being totally conscience of this transaction by a little voice telling you “don’t do it”. We all have. Change the way you look at your money. Respect the dollar earned.
Run fast from debt
Debt is a black hole, an enemy just waiting to lure you deeper into the financial darkness. Borrowers who have mountains of student loan debt have already figured out this black abyss. Your money mission should be to be fully engaged in the moment when you are considering any kind of money opportunity. Say no to the mailbox full of credit card offers. Work your mind off to find scholarships instead of opting for student loans. Debt accumulation will hold you back from future financial opportunities. Learn to look into your future before signing that future over to debt.
Get A Mentor
Some of us are going to need more help than others to get this wealth building mindset and behaviors. The truth is, it is a difficult process when you have no foundation of information to work from. The mind has to almost be recreated to see money as a tool to build wealth. Find someone who has achieved financial success, and ask that they help you to do the same. You will be surprised at how many older successful people would love to reshape a young mind. Keep your eyes and opportunities open for the perfect teacher to help you be an overcomer.
Pick a Career You will Enjoy
There is nothing worse than spending all your best years doing something you absolutely hate. You become automated, indifferent, and resentful—this flows into all areas of your life. Your full earning potential blossoms when you suddenly discover you love what you do. From this, the universe will open up all the doors of opportunities to elevate your financial potential. Your life will thank you. If you are not sure, work that necessary side job while going to school, but also be on the aggressive lookout for the one thing you truly want to do. If available, take advantage of those retirement plans offered by companies, especially the ones who will match your contribution, and get busy putting the money in.
Procrastination is not your friend. It serves as a test of your focus and strength in staying on task. Procrastination does not feel good, accomplishment feels awesome. There are some good strategies to push you beyond the ugliness of procrastination. Believe it or not, daily ‘to-do’ lists are a necessary tool for success. If you write it down, see it visually, and then check off what you have completed, then you are a warrior. Most successful people have been doing this their entire lives. Prioritize your list according to importance and with deadlines in mind. Your only affirmation should be “do it now”.
What to eliminate in your life immediately
Some self-defeating behaviors arise from the mind, people, and general environments. All which can be changed if you have set your sights on building wealth. Here is a short list of what is not helping you to overcome financial hurdles.
- Toxic People: Successful people spend time with other successful people (remember the mentor?) but on the flip-side those who are struggling financially stick with others who are struggling just as hard. Think of the daily conversational loop which occurs depending on each of these categories? Evaluate your relationships, which is a door to new opportunities and which are holding you down?
- Self-limiting and negative beliefs: Those who are struggling financially always seem to stop short of the finish line. They give up. Do not give up at any cost. For that matter, lose the beliefs which are negative through seeking personal development. Never refer to your life as being one of ‘bad luck’. These are lies we tell ourselves to justify wrong outcomes. Success is one tiny positive step, not a whole staircase at a time. You have free will and a choice to stop the Poverty habits byproducts. Positive habits open the world for you.
BONUS TIP: Purpose in Life
By far, this may be the most important tip to consider as you pursue your education, career or dream. If you love what you are doing, you become more than thrilled to devote more hours to this goal or dream. When you can earn a sufficient income from working at something you enjoy, you my friend have found your main purpose.
Try the steps below and see if it helps to define or narrow down who you really are and what you really want to do in this life. (These wonderful tips are via success.com)
- Make a list of everything you can remember that made you happy.
- Highlight those items on your list that involve a skill, and identify that skill
- Rank the top 10 highlighted items in the order of joy they bring to you. Whatever makes you happiest of all gets 10 big points?
- Now rank the top 10 highlighted items in terms of their income potential. The most lucrative skill of all is worth 10 points.
- Total the two ranked columns. The highest score represents a potential main purpose in your life. There is your first baby step back to you.