Wealth Creation Tips: 6 Types of Toxic Money Behaviors that are Holding You BackDec 01, 2021
Money doesn’t grow on trees. It doesn’t grow on bushes or fall from the sky either. Money is either earned or gifted and it is important to know what to do with it when it comes in. With the right tools and knowledge, money can even make money and that is why I am sharing my wealth creation tips—to grow your income and set you up for financial success.
When used sensibly, money can be a great resource for yourself and your community. And, truthfully, everyone can use more of it. It can be a tremendous luxury but also an enormous burden, and it is unavoidable. It is up to you how you see it and manage it. Our whole society revolves around money and as a female entrepreneur, you need to know the best money moves for yourself and your business.
Here are 6 ways you are getting in the way of your own wealth building.
Wealth Creation Tip #1: Borrow Money Strategically
Credit cards and loans can be very appealing—you just need a little extra cash to see you through the end of the month and you’ll be able to pay it back with your next paycheck. No big deal. I can hear you trying to justify it now. The truth is once you start, you’ll never catch up. Once you use that credit card or take out a loan, you owe someone that money and it isn’t free. Interest charges add up and you’ll find yourself swimming in a sea of bad debt.
Have you been in a situation where your bank account is running low on funds, and you could really use a cushion?
It has happened to all of us at some point—it’s best to recognize it and analyze your spending habits.
Some businesses exist solely to lure you into thinking you need their help with that cushion, and unfortunately, they are successful. This is the reason I hate these brick-and-mortar stores that promise fast cash. Whether they are promising your paycheck early or asking you to put down some sort of collateral to get money, it is bad news.
If it seems like something you should avoid. It is. Trust your intuition. Stay away from borrowing money at all costs, especially for impulse buying, non-essentials, or non-investments in your future. It isn’t worth it. If you do not have the cash to pay for something, you cannot afford it. Plain and simple. Stop trying to justify it in your head; it is not good for you.
Now, a credit card can be a useful tool when used wisely. I want to repeat that so that it is clear—a credit card is okay when used wisely with a solid plan to pay it off in a timely manner (i.e.: before you incur a late fee).
Bad debt is a bad decision.
Wealth Creation Tip #2: Create a Savings Account
If the past 18 months have taught us anything—it’s that our economic stability can turn on a dime. My wealth creation tip #2 is to have a safety net. Create a savings account and when you receive income, always pay yourself first. Save a comfortable amount that can carry you for 3-6 months.
Wealth Creation Tip #3: Educate Yourself
We can carry a lot of money trauma around based on how we were raised—but those stories no longer belong to you—it is time to take responsibility for your financial health square. Stop bypassing the responsibility. It is yours now—the good, the bad, and the ugly.
Educate yourself on best money practices; reading this post is a great first step. If you don’t know something, look it up! Learning about money is one of the most empowering things you can do. Don't rely on someone else to manage it for you
Wealth Creation Tip #4: Pay Bills on Time
This sounds like an easy decision but you would be surprised by how many people don’t pay their bills on time for whatever reason and incur late fees or interest charges (wealth creation tip #1).
I suggest utilizing the automatic/recurring payments feature that many companies offer; however, you need to know what you are paying for. It can be easy to turn that feature on and forget about them. Make it a habit to routinely review your bill.
Please, avoid the late fees at all costs. Just when you begin to get some traction, even one late fee can set you back big time.
Wealth Creation Tip #5: Be Responsible with your Money
Your money is your responsibility. It won’t work for itself (unless you tell it to by way of investments). You are accountable for what it does and where it goes.
Be in control of that. Know the ins and outs of your own investments, allotments, and recurring bills. There may be a lot you have to manage, and it can seem overwhelming, but I assure you, it’s manageable and not dealing with it will guarantee it becomes overwhelming.
Refusing to take action is not an option when building wealth.
If you are struggling with something, acknowledge it. Come to terms with your money blocks and set it right or find help.
Wealth Creation Tip #6: Healthy Money Habits
When you invest your money, you are giving it a job to do. Each dollar bill should be allocated for something—savings, bills, investments, rent, food, etc. When you leave money in your bank account un-assigned, you run the risk of using it for frivolous activities and end up short before the end of the month. And so, the vicious cycle begins.
Healthy money habits like the ones I have shared will help you build your wealth and financial success in business and in life.
If you would like to continue learning more about building your wealth, download my FREE guide: The 7 Biggest Mistakes that Keep Female Entrepreneurs from Generating Massive Income. It tells you exactly what you need to do in order to make lots of money. Download that here.