4 Smart Habits for Financial Freedom

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“Good habits make time your ally; bad habits make time your enemy.” – James Clear

Your habits shape your life, and when it comes to money, these habits can either set you up for financial freedom or keep you stuck in a vicious cycle. Today, I’m diving into habits that would help you reach your financial goals faster.

Automating Savings and Investments

Saving money can be difficult, especially when you have to actively make that decision. Here’s the thing, we forget things easily and willpower isn’t reliable. But with automation? That’s a game-changer. When you set up automatic transfers to your savings or investment accounts, you eliminate the need for constant decision-making. You let systems do the work, and consistency becomes effortless. While having full control over when and how much you save or invest sounds ideal, it can work against you. Sometimes, less control equals more consistency.

Before automating your savings, ensure you have built a safety net — at least one month’s worth of living expenses in an emergency fund. This is your financial moat that can cushion the effect of unplanned emergencies on your finances. You don’t want to suddenly sell off your investments or borrow money because of an unforeseen emergency.

Investing With Intention

As a long-term investor, you should not attempt to ‘time the market’. Instead, invest consistently in a diversified portfolio. The goal isn’t to guess the best day to buy or sell — it’s to stay invested consistently over time in a well-diversified portfolio. Unless you have strong, research-backed convictions on individual investments, then invest in diversified pooled investments like index funds or ETFs. Ensure that you look out for low-cost funds that suit your risk tolerance and align with your investment objectives.

Surround Yourself with People with Similar Financial Goals

Your environment shapes your behavior. Whether you want to get better at saving or investing, earning more, paying off debt, or improving your financial literacy, you need to surround yourself with people with similar goals. If your circle doesn’t value saving, budgeting, or investing, it’s easy to fall into the same habits. But when you surround yourself with people working toward similar goals, it creates accountability, encouragement, and inspiration.

Look for communities like investment clubs, personal finance groups, or online forums that align with your vision. Read books, join webinars, or work with a financial coach to improve your financial literacy and stay motivated.

Conduct Regular Money Check-Ins

Make it a habit to review your finances regularly - monthly, quarterly, and/or annually. Start with your “big four” key numbers. Ask yourself:

• Am I progressing toward my goals?

• What performed well during this period?

• What needs adjusting?

• Are my current habits aligned with where I want to be?

Don’t just track your numbers — learn from them

In Conclusion - Make Time Work For You

Financial success isn’t about getting everything perfect. It’s about building systems and habits that move you forward — even when life gets messy. Automate where you can, invest consistently, surround yourself with people who uplift your financial mindset, and regularly check in with your money. These actions, repeated over time, compound. They make time your ally, not your enemy.

And don’t forget — money is a tool. Spend intentionally on what matters to you. Cut out what doesn’t. When your financial habits reflect your values, every dollar works with purpose.

Reflect on This:

• Who in your circle inspires you financially — and why?

Till next week, I am rooting for you, money-ly!

Dee

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Disclaimer: This does not constitute financial advice. Please conduct your research or consult your financial advisor for important financial advice.