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How to Build Good Money Habits


 

"Don't fear failure. Fear being in the exact same place next year as you are today."


-Unknown

 

I sit down at my desk to pay my bills. I have a lot of credit cards. And those credit cards have significant balances on them. I racked up a good amount of credit card debt while I was in college. Now I'm here staring at all of the bills in front of me. I'm trying to pay $1,000 every month to repay this debt. That's a good chunk of my first-year salary, but I run some numbers, and I’m motivated to get this debt paid off.


A year-and-a-half later, I pay the final balance on my credit card debt. I thought it would be a struggle to pay that money each month, but I got used to living on what was left over after those credit card payments. I decided to keep the habit going. I already sat down once a month and got rid of $1,000. Before, I got rid of it by paying credit card companies. Now, I can get rid of it by putting that money into an investment account.


Before long, that money grew into five figures, which is a lot for me at the time. It wouldn't have happened if I didn't have a habit of moving money from my checking account into my investment account every month.


Habits are powerful, and when they are good habits, they can work very well for you.


good money habits are the foundation to good financial outcomes

Good Money Habits


Good money habits are behaviors that we partake in and they are automatic; often we don't even know that we're doing them. Automation is a strong tool that we can use to align our financial lives with what's important. Habits are the automation of behavior. Habits happen automatically, so turning our good financial behavior into habits is very powerful.