The Power of One Wealthy Habit by Deborah Owens
Nutritionists will tell you that acquiring the habit of drinking eight glasses of water every day helps to take off the pounds. Is there a scientific basis for this recommendation? Not really. While water contains no calorie-reducing properties, people who drink a half-gallon of water daily are less likely to quench their thirst with sugary drinks that promote weight gain. What a difference one habit makes.
Why not apply this same approach to your finances by adding one wealthy habit to your lifestyle to reduce debt and jumpstart your financial future? That’s the way Kenyatta plays the money game, and it works.
Kenyatta is a young woman who called into my radio show in Baltimore recently. She was excited. "Ms. Owens, I made the maximum contribution to my retirement plan and put this year’s IRA contribution into another mutual fund," she said.
If you thought building wealth required a major overhaul of your finances, I am here to tell you to simply start by developing one wealthy habit. For Kenyatta, that habit was saving money at an early age – a routine that keeps on paying her. Smart personal finance starts with one positive habit, like Kenyatta’s, which might not get you instant results, but becomes a lifestyle change that can bring many happy returns over the years. What is yours?
• Wealthy Habit No. 1: Show Me the Money
Track every dime you spend. One of the callers to my radio show shared that she and her husband kept every receipt and entered the amounts in a spiral notebook every evening. They knew exactly how much they spent and, more importantly, kept a running balance. The result was that they were debt-free and planning on early retirement. Now that’s what I call "show me the money."
• Wealthy Habit No. 2: Cash Is King
Paying cash for your purchases can help you to put the brakes on frivolous spending. Leave the credit and debit cards at home. An all-access pass to your bank account can be detrimental to your wealth. Behavioral scientists have found that people are likely to spend twice as much when using credit instead of cash.
• Wealthy Habit No 3: Just Set It And Forget!
Want to buy a home or need to save more for retirement? Set up automatic investment programs and have the money deducted from your paycheck or checking account. If you put your money to work immediately, it won’t take a vacation or get lost on it’s way to the mutual fund. Systematic investment programs can help you to stay the course and develop the most essential habit of all: Saving.
One other suggestion I have is that you begin by deciding which one of these habits you are willing to commit to. Like a low or no-carbohydrate diet, if you try to make a total lifestyle change it will most likely result in a buying binge with your credit cards at the nearest mall. Commit to acquiring one wealthy habit at a time, and build on your success.
Meet the Author of A Purse of Your Own Deborah Owens passion is helping people of all incomes build wealth. She is a sought after speaker and expert on the topic of entrepreneurship and financial empowerment.
Deborah is the Wealth Coach on My Generation TV which airs nationally in 30 million homes. She is author of "Confident Investing: A Wealth Building Guide For Women" and "Nickel and Dime Your Way to Wealth". Her new book "A Purse Of Your Own" is scheduled for publication by Simon and Schuster in 2009. (ISBN-10: 1416570810)
Deborah is host and executive producer of "Wealthy Lifestyle Radio" a personal finance talk show that airs on the NPR affiliate WEAA 88.9 FM in Baltimore, Md.
She is sought after speaker and has toured nationally with B.E.S.T. featuring Bishop T.D. Jakes and Magic Johnson, God’s Leading Ladies, Working Women Events and The NASD Office of Individual Investors. Deborah is President of Owens Media Group LLC, which creates financial empowerment programs for companies and organizations.
Deborah Owens Website: www.deborahowens.com
Purchase A Purse of Your Own today at Barnes and Noblehttp://search.barnesandnoble.com/A-Purse-of-Your-Own/Deborah-Owens/e/9781416570813
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