7 personal finance habits you must follow to achieve wealth.

By Volfik | Crypto is fun | 3 Mar 2022

Some people get lucky and create a product that changes the lives of millions of people, including themselves, and get rich quickly. For the rest of us who don’t have visionary ideas for game-changing services or products, or simply don’t want to go into business, there are certain habits that can help us in our quest for wealth.

1. Create a Budget and watch your money flow

Having a monthly budget and being in control of all income and expenses is one of the simplest, yet most important thing in your journey towards your financial goals.

Whenever you manually create a spreadsheet or use any of the apps you can find on the App Store it’ll help you tremendously in tracking where your money is going. And you may find, that you spend an unnecessary $200 a month. That’s $2400 annually, and that’s quite a bang.

Create a budget based on your money flow observations. There’s always something you can cut down from your expenses. Budgeting will help you with the next money habit, which is as important and which is to…

2. Start saving

Saving does not necessarily mean starting investing.

Don’t listen to anyone who tells you to buy this or that stock, or this or that cryptocurrency. It is not responsible to put money into something you don’t have a full understanding of. Which can be a money habit in itself.

It is enough to have at least a savings account. Your money is unlikely to appreciate in value in a savings account, due to inflation, but it is better than nothing.

You can start by putting 10% of your paycheck into your savings account. Is 10% a lot? Adjust it along with your budget. If you save like this regularly long enough, one day you’ll wake up to a proper stack of money. Compound interest is in fact very powerful tool.

3. Create an emergency fund

An emergency fund is a lifesaver. An emergency fund is a stash of money set aside to cover unexpected expenses. Ideally, you want to aim for having 6 months of expenses saved up in case something happens.

Your savings account can serve this purpose if the money can be withdrawn immediately. But it’s better to have a completely separate emergency fund. At least if you have to use it, you won’t interrupt your savings habit.

4. Pay of debts

First, build your emergency fund. Then you can start paying off your debts. Let your emergency fund be but start using the money you had been using to build your emergency fund and start paying off debts.

It is best to start with the highest-interest debt first. But this is not always the rule. If you have a really big debt with high interest that you’d be paying off for a long time anyway, pay off the smallest debts you have first.

5. Plan your big purchases

This was a game-changer for me personally. I set myself a certain amount that I keep on my personal account and whenever I want to purchase something bigger, more expensive I’ll keep more money in my personal account next month, so invest less and use the excess over the usual amount to buy the thing I planned.

As a result, it keeps you on course. It will not happen that there will be big fluctuations in your savings. Nor will the money you have immediately available not fluctuate so much.

Of course, if it’s a really big purchase that you can’t buy in one month, like a car, you’ll want to schedule your budget differently. For example, from the original 10% of your paycheck that you’re saving in a savings account, now put 5% on the side, which will then buy this particular purchase.

6. Build a money tree (have a side hustle)

Try to have more income streams. If you don’t know what I mean by “Build a money tree” I refer you to my article about the money tree.


I once heard that time is like chips in a casino. If you subtract the sleep, you have approximately 112 chips in one week, which you can freely assign to activities. In a week, you give a total of 45 chips to work for your employer (including 1 travel every weekday). You will still have 67 chips left. You definitely can play your favorite game, or you can start a YouTube channel, help your neighbors mow their lawn, or babysit their child, which can help your financial situation.

Thinking of your time as casino chips will help you better evaluate if the time spent on some things is really worth it.


7. Educate yourself on personal finance

There are always new opportunities to earn, save, interest, and more… Educating yourself in this category will help you discover new opportunities where you can save, earn, interest… Whether it’s reading a new book, watching YouTube videos, or reading articles like mine.

An investment in knowledge pays the best interest.

— Benjamin Franklin

Don’t stop educating yourself. After all, putting one or two chips a day into education isn’t so bad, is it?


Originally published at https://helpwithpenny.com

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Amateur blogger, founder of http://helpwithpenny.com/ , crypto enthusiastic, investor, and law student from the Czech Republic.

Crypto is fun
Crypto is fun

Crypto is fun

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