5 habits you should develop before your 30’s

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As a child, I experienced both growing up in a financially stable home and financially unstable home, thanks to my parent’s divorce when I was eight. Financially speaking, I didn’t notice much of a change until my mother was diagnosed with thyroid cancer and had to quit her high-paying job while she went through radiation treatment. 

It was about this time that things became a little uncertain. I remember my mother stressing the need for us to budget, which had been a foreign concept to me until this time. 

My mother did her best to make ends meet and keep the home running as seamlessly as possible, but despite her efforts, the effects were still felt. We lived paycheck to paycheck, which created a feeling of instability. 

I am, however, very grateful for this experience as an adult. 

The experience of growing up and getting a taste of both sides of the financial spectrum really helped me to understand the importance of savings, working hard, planning ahead, and budgeting. 

“It’s better to look ahead and prepare than to look back and regret.”

– Jackie Joyner-Kersee

5 HABITS OF FINANCIALLY STABLE PEOPLE 

What does it mean to be financially stable, and why should we strive to attain it? 

Financial stability can be defined as one’s ability to take control of one’s finances, manage and create plans for negative financial situations as they arise, and the ability to feel stress-free about one’s financial state. 

There are so many benefits to creating positive financial habits before your 30s, but it is never too late to start implementing new habits! 

Some of the many benefits of implementing good financial habits include:

• A feeling of stability – Having good habits that support you in managing your money properly will do wonders for your anxiety and help alleviate all that worry! 
• More money to spend on the things you want in life – Any good financial plan will eventually result in more of an abundance of wealth in your life, and it is always okay to treat yourself a little bit for all the hard work you put in. 
• The ability to focus on the things YOU and your goals – With all those financial worries behind you, it is a great time to focus on self-care and reaching those goals that once felt so far away. Freeing up your finances = freeing up your time! 

And who wouldn’t want all of these things out of life? 

Will implementing new financial habits change your life overnight? No. But nothing good in life is instant. You have to put in the work, but I can tell you that it is SO worth it! 

So, where should you begin? 

1. SAVING FOR EMERGENCIES

You probably hear this a lot, but with any good financial plan, you must include savings! 

Setting aside money for the future can not only save you a ton of heartache and stress but also aid you in being financially ready for investments or other financial opportunities that might help build your wealth in the future. 

Now I know that building up savings is much easier said than done. So start small, put at least $50 away a month, and slowly watch your tiny savings grow and, as you can, over time, increase this amount. 

My husband and I always try to keep at least $2,000 in our emergency savings account. This way, should our car break down, one of us get sick, or one of our cats need to visit the vet, everything is covered without putting ourselves in debt. 

Now you can have different types of savings. My husband and I have an emergency savings account, travel account, and home renovation account. 

At the beginning of each month, we take a small portion of our paychecks and place them into savings according to importance.

Now obviously, if we had a slower financial month, we would place more into our emergency savings and probably a little less into home improvements or our travel fund. 

You have to start somewhere, and having $50 set aside for a rainy day is far better than having nothing set aside. 

So start this month, and you will be one month closer to your savings goal! 

2. HAVING MULTIPLE STREAMS OF INCOME

I’m sure you’ve heard this a million times, but “don’t put all your eggs in one basket“! 

One of the major keys to feeling in control of your money is having multiple streams of income. 

If you have anxiety like I do, knowing that if one stream of income fails, things will still be alright goes a long way! Having multiple branches of revenue does wonders when it comes to alleviating financial stress. 

Plus, it’s a great way to bring in extra money and build that savings we talked about! 

So how does one go about creating multiple streams of income? Sounds pretty hard, right?

It’s really not if you break it down and understand the term “Turn-key income.” 

What is turnkey income, and how will it benefit you financially? 

Turnkey income is defined as income that, once created, can be left to grow and manage on its own for the most part. Basically, you turn the key and can walk away. 

Here are a few examples of turnkey income or passive income:

• Real Estate – Purchasing a rental property or flipping a home are great examples of passive income! You can even rent out a portion of your home or create a vacation rental. Owning a rental property was our first step when it came to creating multiple streams of income. (Be sure to check local zoning laws to ensure it is zoned for these kinds of rentals.)
• Creating A Product – Creating a product and selling it online can be a great moneymaker once things get going! You can create things like art, classes, ebooks, videos, etc. Not to mention that you can delegate most tasks out and eventually turn them completely into passive income. 
• Blogging – Now, obviously, this one isn’t completely passive. Blogging is a lot of hard work, but you can make money while you sleep, and the further you get into blogging, the easier it is to purchase software to help you fully automate your system and free up your time. (Needless to say, I am a big fan of this one!) 
• Youtube – Youtube can also be some work to get started, but it can be another great way to bring in money while you sleep. As with most things, it takes time to grow! 
• Car Wrapping – If you have a newer car, this might be a great option for you! A lot of companies will pay you to advertise their business on your car. The money varies with each company and the miles and city in which you drive each day. The only downside is that it can be a bit hard to weed out the scam sites when looking for a real car wrap opportunity. 
• Add A Fun Yet Simple Part-Time Job – (I know this one is not passive, but it’s still a great option for diversifying your income) Both my husband and I teach English online as a way to help diversify our income and create more financial stability in our lives. Plus, it’s just so much fun, and the hours are incredibly flexible! Which is why it’s perfect for our lifestyle.
• Stocks – Learn to invest! This option is not without risk, and I do not recommend you dive straight into this kind of investing. Be sure to do your research and really understand the stock market before placing your money.

Honestly, when it comes to diversifying your passive income, the more creative you can get, the better off you will be! 

Creativity is one of your best friends when it comes to forming good financial habits and reaching your financial goals!

3. CHECKING ON BANK ACCOUNTS REGULARLY  

This step is often overlooked when it comes to creating good financial habits, but it is by far one of the most important ones!

You should be checking your bank accounts at LEAST once a day. This will give you a sense of how you are doing financially and an idea of how well you are sticking to your monthly budget. 

Not only will checking your accounts regularly allow you to adjust course if you have allowed your budget to slip, but it can also give you a feeling of accomplishment as you watch all of those numbers in red turn green and that small savings begin to grow. 

4. STAYING OUT OF DEBT 

One of the hardest habits to kick is swiping that credit card, but it is bad financial habits like this that lead to mountains of debt. 

Now in today’s world, most of us have debt of some kind, whether it’s from student loans, a mortgage, rent, a car payment, or just careless spending. 

So how do we fix it? 

With a financial plan, of course! Some might call it a budget, but I prefer the term financial plan. It just sounds more satisfying. 

How do we get started creating a financial plan or budget? 

Step 1

Calculate your monthly expenses. I.e., mortgage/rent, utilities, food, gas, phone, internet, minimum payments on your debt, gym membership, savings, and fun. 

Step 2 

Figure out how much money you have left after paying for all your financial obligations, including putting some money away in an emergency savings account each month. 

Step 3

Create a monthly budget for each category in your life. For example, your monthly budget might look like this:

• Grocery budget – $400.
• Gas – $150 (I know this is low, but I work from home and drive a Prius.)
• Mortgage/Utilities – $1,900 (I’m including the internet as a utility here.)
• Car Payment/insurance – $95 (We just paid off our vehicle and currently only own one.)
• Student Loans – $0 (Currently zero for us.) 
• Payments On Credit Cards – $0 (We paid off all our credit cards last year and, with a good emergency savings plan, have managed to keep them that way.)
• Gym membership – $65.  
• Emergency Savings Fund – $800-$1,000 (this number did not start out this high for us. We started small, and as we have added more streams of income, we have slowly been able to increase this number.)
• Fun – $150-350 (this number fluctuates for us depending on how many hours we decide to work that month. Any good financial plan should include some fun money! It is important to give yourself an incentive for all your hard work. Plus, having your own designated guilt-free money to spend on yourself is very important.)

Now your budget will probably look nothing like mine. This is just a generalized overview of what my month might look like. Each state/country’s cost of living can vary drastically. 

Please keep in mind that I am over five years into utilizing these financial stability habits. The results took time, but they have TOTALLY been worth it. 

Now that we have created a monthly budget guide, how do we make sure we actually stick to it? 

Well, there are a few tricks to this.

Firstly, create a spreadsheet! 

I know, I know, the dreaded spreadsheets! I hate spreadsheets as much as the next person though I am quite fortunate to be married to someone who enjoys them. 

We use Google Spreadsheets to keep track of our monthly budget; they are simple to use, easy to track, and free! 

Next, try creating different accounts within your banking account. (Most banks allow you to go online and add extra accounts as well as rename them.) 

For example, we have a different account for each section of our financial budget, such as:

• Grocery And Gas Budget.
• General Bills.
• Emergency Savings.
• Travel Savings.
• Home Improvement Savings.
• Personal Fun Money.

You can personalize each title to your needs and have a debit card that specifically correlates to each account. You can also do the cash-in-designated envelope trick if that is more to your liking, though I personally have found using cards easier and far less stressful. 

This is a great way to help keep your financial budget on track each month! 

And remember to manage your emotional spending! As an emotional spender myself, I often require myself to sit on a purchase for several days before allowing myself to buy it, and more often than not, I didn’t really need or want the item. 

“Too many people spend money they haven’t earned, to buy things they don’t want, to impress people that they don’t like.”

– Will Rogers

5. SETTING ATTAINABLE FINANCIAL GOALS 

Last but not least, be sure to set ATTAINABLE financial goals! 

What does it mean to set attainable goals?

Well, setting a goal of placing $3,000 a month into savings each month when you simply do not overage $3,000 a month is NOT an attainable goal. 

It is, however, a good future goal as you set to work diversifying your income and growing your financial assets. 

An example of an attainable financial goal would be putting away $2,000 into an emergency savings fund by the end of the year. This goal is attainable because you can create a plan, break down your monthly income, and slowly work toward it. 

Financial goals are no different than goals in any other aspect of our lives. We must set realistic expectations for ourselves, form good habits that support our new goals, reevaluate those goals regularly, and keep trying even when things feel hard. 

If you enjoyed this article and are looking for a more detailed guide to goal setting, be sure to check out my article, How To Create The Perfect 5 Year Plan! 

CONCLUSION 

Now that you are armed with these 5 awesome habits for creating financial freedom, it is time to take action! 

I challenge you to implement these 5 habits into your daily life! Start today! Create a budget, a system for tracking your finances, adopt a positive money mindset by letting go of self-limiting beliefs, and just get started! 

If you implement these 5 habits in your daily life and start tracking your progress, you will see results! 

The hardest part is always getting started, but you’ve got this! 

How do you feel about budgeting? Do you struggle with budgeting, or is it something that comes naturally to you? I’d love to know! 

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Have a bright day!