3 Stellar Steps to Instill Wealth Creation Habits & Feel Better About Your Money

Wealth Creation Habits

I’ve been hearing a lot about how money gives people anxiety and people just don’t know how to save enough money, especially when they only get paid once a month. Also, they want to be able to track their money in an easy way.

I thought I’d address these 3 obstacles in today’s post through three wealth creation steps.

1.Wealth Conscious Mindset

The first thing we need to do is address the anxiety and fear around money. It can seem scary to look at your finances sometimes. Especially if there’s debt or you’re worried about not having enough money coming in.

We need to forget the past and address where we are currently. Before we can move forward, we have to figure out where we are currently. Let go of your old beliefs about money. Write down what those limiting money beliefs are so we can let them go.

For example:

  • I never have enough money
  • I have too many bills to pay
  • I can’t keep track of what’s coming in and going out
  • I don’t make enough
  • Sticking to a budget is hard
  • I have to live paycheck to paycheck

The list could go on and on. I want you to start a new list of money beliefs. Realize these new beliefs are possible for you. Replace all of your old money beliefs with new money beliefs so we can move forward with steps to take to make these beliefs come into realization.

Here’s some examples of new money beliefs to instill:

  • I have more than enough money for myself
  • I am always able to pay my bills on time without worry
  • It’s easy for me to track my income and expenses
  • I always know I’ll have more coming in than going out
  • I make more than enough money
  • Budgeting is simple
  • I know I’ll have extra money every month

Create your own list of beliefs that stretch you. We want to get a new wealth conscious mindset, not a limiting mindset.

2.Track Your Money

Once we have our new beliefs, we know where we want to be with our money. We know what we are looking for and want to have in our lives.

The next step we need to take is to start tracking our money. You can open up a Google Doc, an Excel Spreadsheet or get out a lined piece of paper. We are going to make this as simple as possible.

Write the month at the top of the paper.

Make the top section of the spreadsheet your income. Start writing down the different places you receive income. Next to each place, write the amount you received this month (or will receive).

For example:

XYZ Company $2,000

Interest Income $5

After you’ve written down all of your income, total all of the amounts.

The next section of your paper will be your expenses. Think of all the expenses you’ve had this month (or will have). Write down the type of expense and the amount next to it.

For example:

Verizon $100

Rent $1,000

Now that you’ve written all of your expenses for this month, I want you to think of any expenses you have throughout the whole year and write those down as well. This could be your car insurance if you pay it every 6 months or your taxes at the end of the year. If you don’t know the exact amounts, just make your best guess. We are just starting somewhere and can make changes later.

After you’ve written all of your expenses, total all of your expenses.

Now, take the total expense amount and subtract it from your total income amount. This is your net income. The leftover amount (if it’s a positive number) you have each month.

Schedule a time to review your income and expenses each month so you can start tracking your money and stop living paycheck to paycheck.

3.Start a Savings

Now that we are switching our mindset from a lacking money mindset to an abundance wealth mindset and we know what our expenses and income look like each month, we can move to the next step. We can set a a savings goal you’d like to accomplish. In order to create wealth, we have to start with a savings. We need to start with a foundation, a savings, so we can build our wealth from there.

Decide on something you’d like to start saving for. This could simply be an emergency fund with 3 months worth of income. Have it be something that aligns with your new money beliefs.

Once you know what you’re saving for, decide on the exact amount you’ll need to save.

Once you have that, let’s set up a plan to reach that amount. Look over your expenses and decide where you can reduce expenses or switch money around to start putting money into your savings.

For example:

  • Subscriptions you don’t use anymore (gym?)
  • Subscriptions you use, but don’t really need (Netflix?)
  • Clothing budget (do you really need all those shoes?)
  • Eating out (even ordering water instead of a soda will help)

There’s plenty of ways to minimize expenses, just think about all things you spend money on and how you can cut back on what you don’t really need to get what you really want.

Once you’ve found ways to reduce expenses, take a look at your income. Are there other ways you can be creating income? Even just selling something on KSL or Craigslist could give you some extra income. Have a skill that people are in need of? Start teaching piano lessons a couple nights a week. Walk the neighbors’ dogs on the weekends. There’s lots of opportunities, you just have to look for them.

Now that you have an idea of how much extra you’ll have by cutting back on unnecessary expenses and ways to increase your income. Decide how much you’ll contribute each month to your savings fund to reach your goal and how long it will take. If it’s taking longer than you’d like, think of other ways to reduce your expenses or increase your income. Even when you receive extra income, you can put it straight toward your savings goal. I’d recommend setting up an auto-transfer each month so you make sure it’s going into your savings.

I’d love to hear what you’re saving for or ways you’ve been able to reduce your expenses; share in the comments below.

Leave A Response

* Denotes Required Field