They say your thoughts and intentions can influence your future. Many studies have found a correlation between positive thinking and improved health and well-being. Similarly, your mindset can have an impact on your finances. Taking one of these popular maxims and applying it to your life could foster financial success and change your life for the better.
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1. “There’s No Time Like the Present”
People who have this mentality tend to be action-oriented go-getters. They aim to accomplish as much as possible now instead of putting things off.
In terms of personal finance, adopting this attitude can work wonders. For example, it’s easy to avoid saving money, especially if your income isn’t that high. But if you start saving now – even if you’re just putting away $50 a month into an emergency fund or your 401(k) account – your savings will have time to grow. And you can always increase your savings rate when your salary rises.
2. “Knowledge Is Power”
You’ve probably heard this phrase many times. And you can see why it matters when you compare the income levels and job prospects of high school and college graduates. By sticking with your education and getting a college degree, you’re likely to significantly out-earn your peers who stopped after high school.
Maybe you’ve taken the time to earn a degree. But have you made an effort to become more financially literate? If you haven’t, you could be doing yourself a disservice. It might take longer for you to pay off your credit card debt or boost your credit score and that could delay your ability to buy a home. The more you know about finance, the easier it’ll be to make good decisions and build wealth.
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3. “Work Smarter, Not Harder”
Although taking on a second job is one of the ways you can increase your income, working 24/7 isn’t necessarily the best way to achieve financial success. If you overdo it, you could burn out and you might not have enough energy to excel at your day job.
Here’s where investing comes in handy. By sticking some of your cash into an investment vehicle that can earn you interest over time, you can let your money work for you.
4. “Plan Ahead”
While luck plays a role in success, preparation and planning will take you far. Your financial future in particular isn’t something you want to leave to chance.
If you haven’t done it already, it might be a good idea to develop a strategy for choosing investments and growing your nest egg. It’s important to develop a plan based on your personal needs and risk tolerance and check in frequently to make sure your investments are balanced and on track.
Related Article: 5 Bad Money Attitudes That Can Break the Bank
5. “Look Before You Leap”
It’s important to think carefully before taking a financial risk. Once you’ve considered all of the pros and cons, you’ll be more likely to make a choice you won’t regret. Whether it’s a bad investment, high fees or an unaffordable mortgage, a financial mistake can be hard to recover from.
6. “If At First You Don’t Succeed, Try, Try Again”
Of course, you’ll probably make some mistakes along the way as you’re getting your finances in order. There will be times when you’ll overspend or stray from your budget. Don’t get discouraged. Getting rid of bad habits takes time, and acknowledging your small victories can motivate you to move forward.
You might be surprised at how your financial situation can be altered by simply changing your attitude. They may be corny, but these common phrases could help you reach important financial milestones.
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