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How to Create a Money Mindset

 

 

13 habits and behaviors successful people embrace to manage their financial life

  1.  Make your financial life a priority
  • One of the main reasons people struggle with money is because they don’t make their financial life a priority. People are either too busy, they don’t want to learn to do it themselves and/or don’t want to ask for help.
  • Successful people make their financial life a priority and spend the time to make a plan and system for spending decisions.
  • Dedicate the time and resources needed to build a stable financial life. If you don’t know how, learn or ask for help.
  1. Live within your means 
  • Overspending is the cause of most financial stress.
  • Money does not buy happiness but the options that financial freedom provide does.
  • You’re not going to get there by spending more than you have, that’s short sighted and limits your options in the future.
  1. Develop a cash flow plan that will guide your financial decisions and accomplishing your goals
  • Successful people have a process and discipline for the decisions they make. Learning more about your patterns and motivations about spending will help you to clarify what needs to be done to accomplish your goals.
  1. Avoid Debt
  • Debt should be used as a resource to build wealth, knowledge or for emergencies. 
  • The goal should be to maintain zero credit card debt. If you can’t afford to pay cash for something then you can’t afford it.
  1. Ignore the Jones
  • Make decisions based on your own lifestyle and income. Overbuying for status or to complete with others will just complicate and stress your financial life.
  • Don’t use qualification limits for loans and credit cards to stipulate how much you can spend.
  1. Don’t take unnecessary risks
  • Slow and steady wins the race. Ignore the distraction of “get rich quick” schemes. If it sounds too good to be true it probable is.
  • Invest in the long term. Timing the market and/or trying to predict the future is a fouls errand. Use the KISS principal and focus on what you can control not what you can’t.
  1. Keep adequate savings available for the unknown
  • Life is about change and your money needs to be available to assist you through the changes (relocating, changing jobs, getting married and having children).
  • If you do invest your money into illiquid (not easily accessible) investment make sure the reward is worth the risk and make sure there is an emergency fund to help you through inevitable changes.
  1. Have the proper insurance 
  • Make sure you have adequate insurance. Experiencing a major loss could ruin you or your family.
  • Carry life insurance, disability insurance and don’t choose the least expensive property/casualty and healthcare coverage. Have appropriate insurance for your profession and protect your family with additional liability insurance through an umbrella policy.
  1. Use windfalls wisely
  • A large sum of money can be an opportunity to reach your goals faster and create the life you want to invent.
  • Pay off debts, fund existing goals, make purchases that can have real long lasting value and avoid impulses.
  1. Pick the right career
  • It’s hard to build financial stability if are working in a career you don’t like and/or may not be good at. Don’t let the fear or complacency keep you from making a change.
  • Find out your strengths and figure out a way to make money using them.
  1. Keep growing and learning
  •  Commit to improving yourself personally and professionally. Education and awareness are keys to growth. Spending time to improve your situation is the best investment you can make and will increase your earning power.
  1. Ignore the noise
  • Don’t get distracted by what others are saying and doing. Keep focused on the goals and values that move you closer to the life you are trying to create.
  • Having a clear understanding where you want to go and how you’re going to get there will make the opinions and actions of others worthless 
  1. It’s a journey 
  • Successful people fall and get back up to try again. Your ability to adapt and change to the unknown will determine how successful you will be.
  • Learn and enjoy the process.

Want to work with a Professional to get started or new perspective?

Contact me to schedule a time for us to Chat!

Email: [email protected]

 Call: 859-948-8717

 

Working to create easy, implementable plans to reduce uncertainty and build financial stability for busy professionals and business owners.

Chip Hill, CFP® 

Financial Advisor

155 W Bell Ct

Lexington, Ky 40508

Cell: 859.948.8717

[email protected]

chillfinancialplanning.com 

 

Investment adviser representative and registered representative of, and securities and investment advisory services offered through Voya Financial Advisors, Inc. (member SIPC). 

*Neither Voya Financial Advisors nor its representatives offer tax or legal advice. Please consult with your tax and legal advisors regarding your individual situation.

Chill Financial Group is not a subsidiary nor controlled by Voya Financial Advisors.