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Forming Good Financial Habits

black calculator beside coins and notebook

Today I want to encourage you to FORM GOOD FINANCIAL HABITS.

A habit is something that if practiced, and regularly repeated, becomes a routine or just another way of life.

Think about driving a car:

When you first start driving a car, it can be daunting.

You have to look in the different mirrors while trying to steer and stay on the road. When you need to stop, you hit the brake, and the car jerks to a halt. When stopped on an incline, you need to get clutch control and try not to roll back.

It can be a bit overwhelming and confusing, but when you practice driving it becomes easier.

When you regularly repeat the action of driving every day to work and back, it becomes a routine (just a way of life) – a second nature that does not need much thought.

The same is true with financial habits.

Starting a new financial habit can be difficult, but if you stick to it and make it part of your routine, it just becomes a way of life.

Many just blindly follow the same monthly routine with no thought to the way they conduct their financial affairs.

Some have a habit of saving, and they automatically build wealth without even thinking of it.

Unfortunately, the vast majority of people have a bad habit of living on credit and not saving, and they just automatically accumulate more debt.

Each month the credit card is maxed out, and they live on credit. This too is just a way of life!

Some start off with a habit of accumulating wealth, and others with a habit of accumulating debt.

When this is practiced over the years, it becomes a routine, an automatic way of life.

A habit usually takes time to form, but once formed, it becomes a way of life.

You Can Break The Bad Habit Cycle And Form Good Financial Habits!

Good habits usually lead to success, while bad habits lead to destruction.

You can form GOOD HABITS, like living within your means and saving.

You can break the bad cycle of reckless spending and mounting debt.

I believe it is time for you to tear down your destructive habits and build some new good habits.

“There is a time for everything, and a season for every activity under the heavens: A time to be born and a time to die, a time to plant and a time to uproot, a time to tear down and a time to build…”  (Ecclesiastes 3:1-3)

Your financial habits, whether good or bad, will have an impact on your financial future, whether for the better or for the worse.

So during this series, I want to encourage you to FORM GOOD FINANCIAL HABITS, that can help you make good decisions so that you can become financially fit and successful.

Choose Life!

“I call heaven and earth as witnesses today against you, that I have set before you, life and death, blessing and cursing; therefore choose life…” (Deuteronomy 30:19)

The decisions you make today will determine your tomorrow.

Many of the choices we make will lead to predictable outcomes.

If you keep following your current path, where will you end up?

Where are you now?

Where are you heading?

Join the dots!

What road are you on?

“A wise person chooses the right road. A fool takes the wrong one” (Ecclesiastes 10:2)

What road are you on? Where do you want to end up?

If you are not happy with your current situation, then stop… pause… re-assess… consider your choices…

Related Post: Are you at a Crossroads in Your Life? – If you are unsure where to turn, this is the message for you!

The good news is that you can change.

No matter who you are, or where you are, or what you have done or not done, you can choose life.

The decisions you make today, whether big or small, will determine your life tomorrow.

In other words, if you do not like the way your financial affairs are going, you can change.

You are one decision away from your best decision ever, and you do not need to do it alone – God wants to walk the journey with you.

You cannot change your past, but you can change your habits, and you can rewrite your story.

It is often tough to get started when you change your habits, but if you practice good habits, regularly repeating them and letting them become part of your daily routine, eventually they will become part of your normal way of life.

Take golf as an example:

I play the odd game of golf, and because I don’t play often, my shots are often erratic.

But if I committed to practice, maybe take a few lessons, and if I started playing golf regularly, I would hopefully start to gain consistency and my golf would improve.

During this series, we will tackle bad habits like debt and spending, and we will try to help you form good financial habits like budgeting and investing.

But first, I want you to take a look at what is currently going on in most South African households:

The Average SA Household

Most South Africans find themselves in a tough financial place at present, brought on by poor financial habits of limited saving and a culture of debt, which is spiraling out of control.

  • South Africa is over-indebted, with over 23 million credit-active consumers.
  • The average South African has a habit of getting into and staying in debt. Statistics don’t lie and at present, around 80% of income earned by the average South African is used to repay debt.
  • Debt causes a strain on cash flow and pressure. This, in turn, makes it very difficult to save.
  • Many have poor financial habits and the average South African saves less than 2% of their income, and the little that goes into savings is often only put away for a short-term need and is often spent. No wonder South Africans are known to be one of the worst savers in the world!

Unfortunately, the situation is getting worse…

Debt levels are rising, and savings levels are shrinking.

Many are left vulnerable, in a vicious negative cash flow cycle.

Many are in a debt trap, living beyond their means and relying on credit to cover their expenses.

If your finances are in a mess, then your financial habits need to change!

Life doesn’t just happen – It is all about CHOICES and how you respond to the challenge.

You can choose to make bad choices that will lead to disaster, or you can make good choices that will lead to a fruitful future.

When you make consistent choices, you form a foundation for your habits.

Successful people have successful habits, while unsuccessful people don’t.

So, What Is A Habit?

A habit is something you…

  • practice,
  • keep repeating,
  • make an easy routine,
  • and turn it into a way of life.

So, a habit is something you practice and regularly repeat until it becomes a routine, or put another way, a way of life!

You can form good financial habits!

If you have a bad habit of eating an overload of junk food, you will become unhealthy and get fat.

You cannot expect to be fit and healthy if you eat rubbish – in the same way, you can’t expect to succeed financially if you have bad financial habits.  

You can form good financial habits. You can choose to manage your money well.

Do you want to get out of debt?

Do you want to save?

Do you want financial freedom?

If so, you need to change your habits.

If you want to have something you have never had, you are going to need to do something that you have never done.

What are your financial goals? What do you want?

Decide to change and set up a plan.

Practice your new habit. It may be tough but keep on pressing on.

Eventually, your new good financial habit will become a regular routine and a way of life.

I know it is easy to start something, but you need to follow through.

Be committed to your new habit and stick to your plan.

It is time to form good financial habits.

Have a blessed week. God bless you.

Kind regards Clinton.

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