12 Financial Freedom Habits No One Teaches You At School Or College
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Have you ever tried to lose weight by cutting out all your favorite foods? My wife did, after our second child. Salads for days, no pasta, no treats – it felt like a constant battle. For a while, she'd stick to it, feeling proud and healthy. But by the end of the week, the cravings would hit hard.
Suddenly, those salads didn't seem so appealing, and everything she'd denied herself came flooding back. The result? Not quite what she was hoping for.
This experience taught me a valuable lesson: Reaching your goals, whether it's weight loss or financial freedom, isn't about drastic changes you can't keep up with. As Robert J. Collier reminds us that
“Success is the sum of small efforts, repeated day in and day out.”
it's about making small, consistent choices that become a natural part of your life.
A. The 12 Financial Freedom Habits
So, how do we turn those "small wins" into lasting financial freedom? The truth is, you don't need a complete financial overhaul or a drastic lifestyle change.
Just like building muscle requires consistent exercise, not a one-time gym visit, financial freedom thrives on small, daily habits that stack up over time.
While each habit, on its own, might seem insignificant, when you put them all together, you'll be amazed at the transformation in your financial well-being.
Ready to ditch the financial struggle and climb your way to freedom? Let's go!
Track Expenses For Financial Freedom
1. Track Daily Expenses
We've all been there. You craft a monthly budget, feeling empowered and in control. But then, a few weeks later, that feeling fades.
Where did your money go? Why does it feel like you're already off track? The culprit? Not tracking your daily expenses.
The power of daily expense tracking is twofold:
You become acutely aware of where your money goes, from morning coffee to those "impulse buys" you barely remember.
Once you see your spending patterns, you can identify areas to cut back and redirect that money toward your financial goals.
Tracking daily expenses is the foundation of financial freedom. However, it doesn't have to be a complex process.
There are plenty of free apps and budgeting tools to make it easy. The key is to find a system that works for you, whether it's a simple notebook or a sophisticated app.
2. Set Spending Limits
Remember how my wife tried to lose weight with that restrictive diet? It felt like she was in a constant battle with food.
The same thing happens with finances. Relying solely on willpower and drastic cutbacks often leads to frustration and ultimately, failure.
Instead of feeling like you're constantly on a financial diet, setting spending limits empowers you.
Set Spending Limits For Financial Freedom
The key is to set realistic limits that you can stick with in the long run. Maybe it's a daily coffee budget, a limit on eating out, or a certain amount you can spend on clothes each month.
Try and find a balance that allows you to enjoy life's little pleasures while staying on track with your financial goals.
3. Curb Impulse Purchases
We've all fallen victim to the allure of that impulse buy – the trendy gadget you didn't know you needed, or the "sale" that's too good to miss. These unplanned purchases can easily derail your budget, especially if you haven't set realistic spending limits.
So the next time you are about to swipe your card or hit "buy now," ask yourself:
Does this purchase fit within my spending limits?
If not, can it wait?
In most cases, the answer will be a resounding "no." A little pause and a quick mental check against your limits can save you from financial regret later.
4. Pack Your Lunch
Eating out for lunch is a major budget drain. Those daily restaurant meals can easily add up to hundreds of dollars a month.
Packing your lunch is a simple yet powerful way to save money and gain control over your health at the same time.
Watch What You Eat For Financial Freedom
It may seem like a small change, but the cumulative effect on your wallet can be significant. For example, if you spend an average of $10 a day on lunch, that adds up to $250 a month!
Over a year, that's $3,000 – money you could be putting towards achieving your financial freedom goals.
5. Sell Unused Items
We all have that drawer (or closet, or garage...) overflowing with unused items – clothes that no longer fit, gadgets that collect dust, and books we've read and moved on from.
These items might not be valuable to you anymore, but they could be treasures waiting for someone else. As the saying goes, 'One man's trash is another man's treasure.'
Selling your unused items isn't just a great way to declutter your space. The extra money you make can be used to pay down debt, save for a goal, or simply give your budget a little boost. Many platforms make it easy to sell your unused items, for example, consignment shops, online marketplaces, or even garage sales.
6. Review Your Subscriptions
We all sign up for subscriptions with good intentions – a streaming service for the latest shows, a monthly gym membership, or a delivery service for convenient groceries. But over time, those subscriptions can become silent budget drains.
Review Discretionary Spends For Financial Freedom
Many subscriptions come with free trials or introductory offers. It's easy to forget about them and end up paying for services you no longer need.
You might also be subscribed to services you rarely or never use. Be honest with yourself – are you utilizing that gym membership or that music streaming service you signed up for months ago?
A simple solution: Schedule a regular review (quarterly or biannually) of all your subscriptions. Carefully analyze each one and ask yourself:
Am I using this regularly?
Is there a cheaper alternative available?
Can I cancel this service and still achieve my goals?
By proactively managing your subscriptions, you can avoid wasting money on services you don't need or use.
7. Take The No-Spend Challenge
Ever feel like your wallet has a hole in it? Money seems to mysteriously disappear throughout the day on seemingly insignificant purchases. A latte here, a snack there – before you know it, your budget for the week is gone!
There's a simple yet powerful way to combat this spending gremlin – the no-spend day. It might sound impossible at first, but it's a fantastic way to challenge yourself, boost your financial awareness, and discover the fun in free (or almost free) activities.
Just pick a day that works for you and commit to spending zero dollars (except for pre-paid bills, of course!). It's a small but impactful step towards achieving your financial freedom goals.
8. Use Cash For Small Purchases
Okay, I gotta come clean – I was a total swipe-aholic. Pulling out my card and paying with a tap or swipe seemed futuristic, so ditching cash felt like a no-brainer. It was convenient, sure, but it came with a hidden cost: my spending spiraled out of control.
It turns out, cash offers a surprising benefit – a reality check. Seeing actual bills and coins leave my wallet makes me think twice about every purchase.
Cash in hand is a tangible reminder of how much I'm spending, helping me avoid mindless swiping and stay on track with my financial goals. So if you are struggling with the same challenge, try using cash for small purchases. Trust me, it works!
9. Negotiate Daily
“A penny saved is a penny earned.”
This simple quote holds immense wisdom, especially when it comes to financial freedom. Back in my teenage days, my mother's constant negotiation tactics used to make me cringe.
Every purchase, from a new pair of shoes to a haircut, seemed to involve some form of bargaining. It felt a little embarrassing as if she was trying to get something for nothing.
Negotiate For Financial Freedom
But here's the thing: Mom was onto something. Fast forward to today, and I realize the power of negotiation. Every successful negotiation puts extra money back in your pocket. And those extra pennies, over time, can make a noticeable difference in your journey towards financial freedom.
10. Crush Your Personal Debt
Credit cards charge high interest rates. If you only pay the minimum amount, most of your payment goes towards interest, not the actual amount you borrowed.
Minimum payments are designed to keep you in debt. They only cover a tiny portion of what you owe, and the interest keeps adding up.
Paying your balance in full each month breaks this cycle. It allows you to tackle the actual amount borrowed instead of just paying off the ever-growing interest. This way, you can keep more of your hard-earned cash in your pocket instead of lining the credit card company's coffers.
11. Avoid Fast Fashion
Fast fashion might seem appealing – trendy styles at low prices. But it can actually hinder your financial freedom in several ways.
The constant barrage of trendy styles in fast fashion stores can tempt you into impulsive purchases you might not truly need. Fast fashion trends move quickly.
The pressure to keep up with the latest styles can lead you to constantly upgrade your wardrobe, even if your existing clothes are still perfectly good. This disrupts your budget and diverts money from your financial goals.
Here’s what you can do instead:
Invest in fewer, well-made clothing items that will last for years to come.
Only buy what you truly need and love. Ask yourself if you'll wear the item for a long time and if it complements your existing wardrobe.
Your conscious clothing choices can not only save you money but also enable you to contribute to a more sustainable lifestyle. This aligns perfectly with the principles of financial freedom – making smart choices for your future.
12. DIY When Possible
Growing up, we rarely had to call a carpenter or a handyman because Dad could tackle almost any project around the house.
Little did I know back then, his DIY spirit was laying the foundation for my financial freedom.
The cost of service calls can add up quickly, but with a quick internet search and a trip to the hardware store, I'm often equipped to carry out the task myself. This not only saves me money but also fosters a sense of accomplishment.
Developing a DIY mindset is a powerful daily habit that contributes to financial freedom in several ways. It allows you to:
Save consistently
Become self-reliant
Break the spending cycle
While there's immense satisfaction in tackling projects yourself. Do not hesitate to seek professional help for complex tasks that are beyond your skill set. By equipping yourself with the skills to tackle everyday repairs, you'll be surprised at how much you can save.
Bonus tip 1- Recycle And Repurpose
My mom would always save old jam jars and repurpose them as spice jars. Glass bottles would turn into planters for our money plant. I never felt anything special about it back then. It was just the way things were done in our house.
Now, I see recycling and repurposing in a whole new light. They're not just environmentally friendly practices; they're also powerful tools to stretch your budget and save money.
By giving things a second chance, you can keep your expenses in check, minimize waste, and maximize savings.
Bonus tip 2 - Practice Gratitude
“Gratitude is a powerful catalyst for wealth creation. When you appreciate what you have, you are more likely to attract more abundance into your life. ”
Financial freedom isn't just about earning more money; it's also about managing your money wisely and appreciating what you already have.
Gratitude fosters a positive mindset shift that can benefit your financial well-being in several ways, for example:
When you appreciate what you already own, you're less likely to fall prey to impulse purchases or the urge to "keep up with the Joneses."
It allows you to shift your focus from "keeping up" to "moving forward."
Appreciating your current financial situation allows you to set realistic goals and prioritize saving and investing for the future.
As such, gratitude is a powerful tool that can transform your relationship with money. It helps you make better financial decisions, so you can focus on building a secure and fulfilling future.
B. Decyz POV On 12 Financial Freedom Habits
The road to financial freedom may seem long, but remember, even the mightiest journey begins with a single step.
Each act of gratitude, every DIY project, and every conscious spending decision you make is a brick laid on the path to financial freedom.
At Decyz, we acknowledge this journey isn't always easy. It will require frequent adjustments, and slip-ups are bound to happen. But don't let them deter you.
The key is to keep moving forward because every dollar saved is a dollar you can reinvest toward your future. With these power habits as your guide, you can unlock the door to financial freedom and design a life filled with purpose and fulfillment.
