Creating and maintaining positive habits not only impacts your health and happiness, but it can positively impact your finances as well. As you strive to be more diligent about your mental and physical health, your financial management may improve as a result. That said, here are seven habits that make you happier and healthier while enhancing your money management skills.
Gratitude is advantageous for your mental health and can be one of the best habits to make you happier and healthier. It helps reduce stress and boosts the immune system. Experts recommend writing down a few things that you’re grateful for every day. This can cause a healthy mindset-shift over time.
Also, this habit can impact your finances in a couple of ways. First, it will create a habit of writing things down and being more aware of your financial habits. Second, it will help you to frame your financial position with positivity and hope. You can even make paying your bills or spending money part of your gratitude practice. This will set the stage for stronger, more positive financial habits to take hold.
Studies show that people who write down their goals are three times more likely to achieve them. When you set a goal, start by identifying what matters to you. Then, take inventory of your current status. For example, if your goal is to run a marathon because your physical health is important to you, you may only be able to run a 5k right now.
Next, create a SMART goal. This goal will be specific, measurable, achievable, realistic, and timely. Finally, break down your large goal into attainable steps. For example, if your goal is to run a marathon, you may want to enter a 10k or half-marathon before the full marathon.
Goal setting is an important habit that can improve all aspects of your life. It can also positively affect your finances. If you are in a habit of creating SMART goals, then you can translate this skill to your debt repayment, spending, and saving goals to be more judicious about your financial decisions.
When you know your long-term and short-term goals, you can also anticipate any setbacks that may come your way. In the marathon example, you might be training for a race in the spring but can anticipate that it will be difficult to run outside in the winter months.
Understanding and embracing your obstacles is also important when developing financial habits. If you want to pay off all your debt before you turn 35 but also want to start a family, then you might experience short-term loss of income or increased expenses that get in the way of an aggressive debt repayment plan. When you know what lies ahead, you can better prepare and plan for it.
It is important to reward yourself as you hit milestones on your way to achieving your goals. In the marathon example, you may want to reward yourself with a new pair of running shoes after your half marathon. Keep in mind, as you reward yourself, you should choose something that will help you achieve your goal. Just as someone who has a weight loss goal shouldn’t reward their weight loss with donuts because it would be counterproductive, you should not reward yourself with expensive things as you get closer to your financial goals.
This will help you to stay motivated as you approach your goals. This is important when planning your finances because you will be more likely to stay on track over time. For example, if your goal is to start saving for retirement, the first step may be to create an emergency fund. Then, when you have saved enough for an emergency fund, you may want to reward yourself by starting a relationship with a financial advisor that can help you to plan the most advantageous investments for your retirement.
Getting in Shape
Nobody goes from a couch potato to a marathoner in a day. The same is true for your finances. It takes time and diligence to create positive habits that have a lasting impact. Getting in physical shape takes many changes. Typically, it requires allocating plenty of time to exercise, lots of brainpower toward learning about nutrition, and lots of motivation to complete good workouts.
These habits will positively affect your finances. Being financially healthy requires time to learn about your options, brainpower to decide which options are best for you, and motivation to stick to good saving and spending habits.
As an additional benefit, maintaining your health can help to prevent medical issues. This will help to ensure that you can continue to generate and income and avoid hefty medical bills.
Getting Enough Sleep
Can getting enough sleep really help you with your finances? Experts say yes. The most difficult thing for most people about getting enough sleep is prioritizing it. If you choose to prioritize Netflix or waking up early to go to work, then your sleep may suffer. By prioritizing quality sleep, you will learn to prioritize in other areas of your life.
When it comes to your finances, it can be difficult to stick to a budget. However, if you are practicing self-control, it is easier to know when to say yes or no to something that will impact your spending. Getting enough sleep also helps you to make sound decisions. By ensuring that you are sleeping enough, making touch decisions will be easier, and you will have better self-control.
Drinking More Water
Drinking more water can help you save money. Water is essential to your health. Adequate water intake stimulates the nervous, digestive, and circulatory systems. Thus, this helps you to stay healthy and maintain a healthy weight. Ultimately, this will help you financially by preventing illness and promoting healthy habits.
Water is both the cheapest and healthiest drink available. By substituting a water for a sugary or alcoholic beverages, you can avoid the additional expense of drinks. If you dine out a few times a week and order a drink with each meal, that can add up to hundreds of dollars a year.
Creating habits that make you happier and healthier can impact all aspects of your, life including your finances. From focusing on your physical health to setting goals, you can create momentum that propels you to a happier, healthier, and financially secure life.