Brick pan brick… brick pan brick pan brick …. There are some financial practices that can make you wealthy that I’m excited to share, and NO I’m not talking about scamming. I’m talking about perfectly legal financial habits that can change your life! “Wealth is largely the result of habit,” a very rich man once said. I’ve prepared 6 financial habits that can change your life for the richer. 

1. Maximize your time. 

As the cliche goes, time is money, and it’s so true!  We each get the same 24 hours daily, but how we use those hours can make a huge difference. Let me put this simple … get up early!  Some of the wealthiest people in the world are usually up as early as 5 am.  I guess that means my son is gonna be rich because he wakes me up at 5am every day! You’ll realize that the earlier you start the day, the more you can accomplish. Schedule your day, use to-do lists to manage your time so that you can monitor your tasks effectively, and practice waking up at the same time daily. Establish a routine that will maximize your productivity. 

Less Netflix, more networking. Less procrastinating and more brainstorming, strategizing, and creating! 

2. Use debt wisely and minimize consumptive debt. 

These are the debts that drain your wealth, are not affordable, and offer no real prospect of paying for themselves in the future, like luxury cars that you can’t really afford, and credit card bills. Try to reduce these kinds of debt that drain your finances, restrict your financial freedom, and do not bring you additional income. 

You can, however,  borrow money to make money. Debt can be a useful tool for building wealth. These include business loans, real estate and even student loans. I spoke about the difference between good debt and poor debt in a previous episode – click here.

3. Create a Budget and Stick to it! 

Monitor your spending and make sure that your budget is realistic. Here’s a challenge – figure out how much it takes for you to cover your monthly expenses, including recreation, and live comfortably, then aim to increase your income to make double that amount. So Instead of just making a budget that fits your financial situation, aim to increase your financial situation based on how you’d ideally want your budget. A budget doesn’t limit your freedom, it should give you freedom! It’s really about being intentional with where your money goes, and where you need to take it so you can live comfortably. 

I spoke a lot more about budgeting here.

4. Create passive income streams.

I always emphasize the importance of making your money work for you. Sidong [sit down] and collect! Commit to regular investments. This is one passive income stream that can lead to long-term financial security. Find ways to make money  remotely or in your sleep. That way if something happens to one stream of income, you have another or others to depend on. 

In the book, “Making my first ten Million”, Brian Carruthers writes, “If 100% of your income comes from 100% of your efforts alone, that is a recipe for disaster. What happens if you get sick, lose your job, can’t work, or want to retire? Your income is gone.” 

Make your money work for you so eventually if you stop working you’re still making money.” 

I’ve outlined some ways to do so in my videos on passive income and my how to make money remotely. 

5. Live within your means!

I cannot emphasize this enough. To “live within your means” means that what you spend each month is less than or at least equal to the amount of money you bring in each month.  Don’t go broke trying to look rich. Buy what you can afford while working on affording what you want! If you’re using a credit card for example, don’t spend more than what you actually have in cash, so that you can afford to pay it off in full every month and avoid those hefty interest rates and fees. 

I keep reminding people that the average credit card interest rate in Jamaica is 40-percent!

And that debt cycle will catch up to you.  I’m by no means saying don’t treat or reward yourself for your hard work. I’m saying ensure that you don’t spend what you don’t have. There’s no need to go into debt for material things that will not generate income. 

6. Keep evolving and learning.

Aim to continuously increase your skil lset and make yourself more competitive. Fortunately, we live in a digital world where most of us have access to a wide range of information. The answer to limitless questions is just one google search away.  There are literally millions of how-to videos on social media, and we can learn almost anything from youtube. Use these resources to your advantage. Try to learn a new skill every few months. Like I’ve said before. You are your brand, build that brand accordingly. Your income can grow only to the extent that you do…So Let’s get this money!

Categories: MoneyMondaysJA