How To- Create Simple Healthy Financial Habits

“I would hope with that much money he would help others!”

I heard that line on the radio this morning, confirming why I usually listen to podcasts or my own thoughts because I immediately wanted to call the DJ and ask “what are YOU doing?”.

In this case, the DJ was talking about a millionaire donating $750,000 to help migrant workers pay their rent.

We are all “that person” to someone else. And you do not have to be a millionaire or billionaire to make a difference.

What are YOU doing to help the less fortunate?

Or are you waiting until you have “enough” to start?

What will that magic amount be?

Guess what? If you do not get in the habit of giving now, you will never reach the “magic number”.

Get in the habit now of saving a little, investing a little, giving a little, spending a little on education, and spending a little on fun.

Even if it means splitting a dollar and putting 20 cents in each “bucket”.

ACTION STEP: 1. Figure out an amount that you are going to move from your next paycheck to these five areas on your next pay day and do it.

2. If you do not miss it, increase the amount a little more next pay day. Ideally you will be paying yourself at least 10% off the top of each deposit.

You can open five new accounts and move them electronically or you can take the cash out and put it in five envelopes, jars, or piggy banks.

If you are paying student loans, the “education” money would go to cover those payments. If there is extra, set it aside for books, courses, or your favorite way to learn and better yourself.

Your fun money covers your daily coffee, mani-pedis, massages, movie nights, eating out, etc. But, still keep it separate because it is really easy to blow your budget out of the water with lots of fun!

Your investing money can be used to purchase stocks, bonds, cds, savings bonds, real estate, or whatever else you are going to use to ensure Future You is financially secure.

Your savings is there for emergencies. Keep saving until you have 6-12 months of expenses.

And, of course, giving is for you to give away. It does not matter if it goes into the basket as it is passed at Church, donated to your favorite nonprofit, or given to a random stranger. Feel free to get a little creative. During the early months of COVID-19 I gave away $5, $10, and $20 bills to store employees, either directly or by tucking it in the cart for when they cleaned it.

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