ôô

7 Micro Habits That Create Financial Success

Find out what a micro habit is and how to use them to improve your financial life. They require minimal time, effort, and motivation, but can build up to huge, significant results when you make them part of your routine.

By
Laura Adams, MBA,
Episode #538
7 Micro Habits That Create Financial Success

I also recommend calculating what an item costs you in time. Here’s a shortcut to convert your annual income into an hourly rate: If you earn $50,000 a year, shorten it to $50, then take half, which equals $25 per hour. So, if a new pair of boots cost $250, earning $25 per hour means they’d cost you 10 hours of work—before taxes.

Are new boots worth the equivalent of a long workday? Only you can decide. Doing time value calculations and waiting 24 hours are micro habits that can instantly reframe how you think about making a purchase.

6. Automating your savings.

A micro habit that you can put on autopilot is automating savings and investments. The idea is that what you don’t see in your bank account, you can’t spend.

That’s why workplace retirement plans with automatic payroll deductions, such as 401ks or 403bs, work so well. So, contribute as much as you can at work, or create a recurring transfer to move money from your checking to an IRA or bank savings account, as soon as you’re paid.

It’s OK to start small. Even investing $50 a month is better than nothing. If you invested that much for 40 years and earned a conservative 6% return, you’d have $100,000.

Creating your accounts and setting the savings automation infrastructure is what’s most important to build wealth and move your finances in a positive direction.

See also: 8 Financial Truths That Can Change Your Life

7. Saying “no” more often.

Saying “no” to negative people or invitations that don’t align with your goals is a wise micro habit to develop. It can be much harder to do the right things when you’re around other people’s drama and conflicts.

The people you surround yourself with have a major influence over who you become. So, don’t let negative influences penetrate your mind. Stay true to who you are and what you want to accomplish.

Instead of acting unconsciously and being jerked around by unproductive impulses, use these tiny habits to ease into a new world of positive behaviors and outcomes.

Get More Money Girl!

If you set a resolution to get out of debt this year, awesome! Now it's time to actually learn how to do it. Don't miss Laura's new online class Get Out of Debt Fast--A Proven Plan to Stay Debt-Free Forever. Enroll with an 85% discount for a limited time when you click here to learn more!

If you're ready for help managing debt, building credit, and reaching big financial goals, check out Laura's private Facebook Group, Dominate Your Dollars! Request an invitation to join this growing community of like-minded people who want to take their financial lives to the next level.

To connect on social media, you’ll find Money Girl on FacebookTwitter, and Google+. Also, if you’re not already subscribed to the Money Girl podcast on Apple Podcasts or the Stitcher app, both are free and make sure that you’ll get each new weekly episode as soon as it’s published on the web. The show is also on the Spotify mobile appClick here to sign up for the free Money Girl Newsletter!

Download FREE chapters of Money Girl’s Smart Moves to Grow Rich

Sneakers on Asphalt Road image courtesy of Shutterstock

Pages

The Quick and Dirty Tips Privacy Notice has been updated to explain how we use cookies, which you accept by continuing to use this website. To withdraw your consent, see Your Choices.