"Getting money is one thing. Keeping it is another.” - Morgan Housel.
We all want to make money, but do we have what it takes to make that money stay with us?
Morgan Housel’s “The Psychology of Money” is an eye-opening book that helps you understand money, how people think about money, and what you need to do to make it last.
According to this book, here are 5 money habits you need to adopt to elevate your financial situation.
5 Money Habits You Need to Adopt to Become Wealthy
Money should never be your goal
When money becomes your sole goal, things get complicated. If you view it as the prize, the only time you feel satisfied is when you get more, leading to an endless chase that puts other areas of your life at risk.
Instead, view money as a tool that helps you live the life you want. Think of it as a vehicle: you’re the driver, directing where it should go and controlling it, not the other way around. This perspective fosters a healthy relationship with money.
Save more than you spend
One of the reasons we make money is to spend it. But remember, there will come a time when you won't be able to work anymore.
As the saying goes, “save for a rainy day.” If you spend money as fast as you make it, what will you do when the rainy day comes?
Saving more and spending less offers many benefits. You develop good spending habits, save up to visit places you've always wanted to go, and, most importantly, always have something to fall back on in case of emergencies.
Stop comparing your financial journey to others’
You know the saying, "comparison is the thief of joy." Anyone who constantly compares themselves to others will find it hard to be content.
The same applies to wealth. If you keep comparing your wealth to others, you may feel like you're not doing enough, even when you’re doing very well.
This is why it’s important to set a personal financial goal. What amount of wealth do you want to achieve? What do you consider “enough”? Why are you trying to build wealth in the first place?
Answering these questions will help you define what you want financially and keep you from unnecessary comparisons.
Wealth is built over time
Building lasting wealth isn’t an overnight endeavour. It requires consistency, dedication, and determination.
Avoid get-rich-quick schemes. Instead, invest in things like stocks and index funds that grow over time. Start investing early, and be consistent. The small amounts you invest today will keep growing over the years, eventually becoming significant.
Financial freedom over wealth accumulation
Which would you choose: making more money or having more time?
But what if you could achieve both: make more money and have enough time to do the things you enjoy?
The path you take depends on the financial decisions you make. Remember, you can achieve wealth without sacrificing all of your life and time for it.