4 Healthy Habits for Financial Success
We have clients in every walk of life.
Fun fact, building wealth has little to do with your job title.
Many people that you would assume to be rich, for example a doctor or lawyer, spend their money and go into debt playing the comparison game with their peers.
There are better ways.
There are simple ways to build wealth and be a financial success sensibly (and you don’t have to be a doctor or lawyer!).
Your habits.
Here are four simple money making habits of our most successful clients – out with the old and in with the new.
#1 Set Clear Financial Goals
Firstly, get clear about what you want and when you want it. Furthermore, have a strong “why” behind your goal.
You’ve now given your mind a clear target to optimize your actions around.
The goals are just a starting point.
Secondly, set up repeatable systems that align your actions with your goals. This is what drives progress.
So, next time you set a financial goal, don’t stop at setting it.
Determine what it will take to reach your goal and take the action.
#2 Invest Each Month – without fail
Simply speaking, you won’t build wealth without investing.
The richest people in the world know this, which is why they buy appreciating assets like stocks/equities.
The most successful investors also know that investing isn’t about timing the market.
Trying to time the market is a tried and tested fool’s errand for long-term investors.
Investing is about spending time in the market, not trying to catch the market’s random highs and lows at the perfect moment.
Simplify investing by investing the same amount on a set schedule, like clockwork.
By creating the investing habit (with the help of automatic transfers each month), you will avoid costly mistakes.
Mistakes like missing the best-performing days in the stock market and losing out on years of compounded returns.
Anyone can do this.
#3 Plan for a car crash
Building wealth is one thing, protecting it is another.
The most successful financially don’t leave this to chance.
They proactively plan for when the bad stuff happens.
It can be a medical emergency, a market crash, or replacing an expensive piece of your home — there are ways to protect yourself from financial ruin.
Some of the most common disaster-proof habits are:
- Have a cash emergency fund equal to six months of income
- Health insurance
- Protect your income (your most important asset) with income protection
- Protect your family with life insurance
- Create a tax efficient estate plan
Protection is the foundation of any financial plan.
Without it, it’s all too easy to blow up your financial goals when an inevitable surprise comes along.
Why take the chance?
#4 Invest in Professional Help
The last habit the most successful share should not surprise you.
When they need help or simply lack the time to do something themselves, they invest in professional advice.
This rings especially true for their personal finances.
Instead of DIY-ing things like investing, taxes and major financial decisions, they understand the value of partnering with a certified financial planner to put all the pieces in place.
You can only do so much yourself, then you have to outsource. A bit like DIY.
The data and statistics back this up.
Those that pay for advice and work with a certified financial planner are better of financially, in both the short and long term than those that don’t.
Yes, you read that correctly, ‘pay’. We don’t work for free, no one does.
Summary
Four simple and effective financial actions to take.
Looking for help in where to start?
We have cost effective advice solutions for everyone, whether you’re just looking to get your financial house in order and build good habits or you are looking for a full on financial review, we can accommodate you.
Get in touch
Contact us and take the first steps to getting your finances in order.
Email us at info@fortitudefp.ie or click below to schedule an introductory call at our expense.
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Our blog posts are intended for information purposes only and should not be interpreted as financial advice.
You should always engage the services of a fully qualified financial planner before entering any financial contract.
To discuss engaging the services of Fortitude Financial Planning please email us at info@fortitudefp.ie.
Fortitude Financial Planning Ltd will not be held responsible for any actions taken as a result of reading these blog posts.
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