Building Wealth: The Consistency in Financial Habits

Making wealth isn’t based in a surprise windfall, or a secret plan known only to a lucky hand full of people. It’s not about the one or two ‘big’ money moves, it’s about the small, everyday habits you practice right now, every day, over and over until they become a rock solid money foundation. Well, let’s now find out how consistency is important to help you be successful financially and how you can integrate this into your lifestyle.

Consistency: Financial Success Unsung Hero

Most of the time, when we picture financial success, visions of stock markets, real estate investments or big money jobs pop in our minds. Although these can be the component parts, the real magic is in intentionally and constantly practicing smart financial habits. It’s like planting a tree. It will take a few years to raise a mighty oak, but one day of watering won’t do it.

Imagine Sarah from Ohio as a school teacher. She didn’t live a flashy life, nor did she have a massive inheritance. What Sarah had was a commitment to saving some of her income every month. This simple, consistent habit, which she developed over the years, built her a fairly great nest egg – and has proven the advantage of consistency in the world of money.

Start Small, Think Big

The number one barrier to building wealth is the concept that you have to begin with lots of money. What most do not realize is, starting small can be just as effective, if you are consistent.

For instance, think about saving as little as $5 a day. Over a year, that sounds minimal but it adds up to $1,825. Over a decade, it grows, with interest, even more. It’s not about how much we are saving, it’s about forming a habit of saving regularly. It’s manageable and empowering because it’s so easy and shows that you don’t need much to start the path to financial stability.

Save Automatically

A good way to be consistent is to automate your savings. Taking the urge to spend that money away eliminates it: by setting up automatic transfers from your checking account to your savings or investment account. It goes something like putting your financial habits onto autopilot.

Take for example David, a graphic designer who decided to set up her retirement fund to automatically siphon off a small percentage from her paycheck. The difference in his take home pay was barely anything that he noticed but a few years later, he was just amazed at how much savings he had. It was automation that took the effort out of that equation, making consistency virtually effortless.

Budgeting: Your Financial Blueprint

Lastly, consistency is a key to budgeting. Creating a budget isn’t a one time exercise, but rather a monthly routine that let’s you keep track of your income, keep hold of the expenses and also helps you live within your means and save for a future that you deserve.

Think of budgeting as the financial GPS you’ve always needed. If you don’t have such budget, you have the risk of losing your money in certain months and spending less than projected. By regularly updating and reviewing your budget, you remain on the right path adjusting as necessary. It helps taking the financial stress out of the equation.

How Mindset Affects Consistency

It’s about action, but it’s about mindset too. That can keep you going when the immediate reward isn’t there: believing in the long term benefit of your habit. Patience and perseverance is what is needed here.

Instead, picture Jane, who had determined to pay off her student loans by consistent extra payments over the course of each month. It was not only easy and sometimes it felt like nothing was happening. She stayed committed, the end goal financial freedom. Her efforts proved consistent and by years earlier she cleared her debt.

Investing: *The Power of Consistent Contributions

It can be intimidating to think about investing, but you don’t have to be scared. The point is to start and continue. However, regular contributions, be they in the form of a retirement account or some other investment vehicle can matter a lot.

Take for example Mike who started investing in his early 20’s. In the beginning he didn’t have much to put in but he made it a point to regularly chip in a little bit. Mike’s investments did grow over time, thanks to compound interest. He made consistent contributions, even during markets which fluctuated, and built a considerable portfolio.

Settings and problems change, and we learn how to solve them more effectively.

Consistency surely doesn’t mean rigidity. Learn as your financial situation and goals move on and adapt. Review your financial habits regularly and change them throughout. However, this flexibility helps maintain effective consistency for you as it helps align with your objectives always.

For example, Lisa had been putting money away for years, and when she started to feel comfortable with a few basic moves, she changed some of that money to a higher paying investment. She had her consistent savings habit down and that accounted for the financial cushion to take calculated risks.

Celebrate Milestones

Celebrating milestones is one thing that is often overlooked in maintaining consistency. As small as their achievements may be, recognize them, because it can drive motivation and it reinforces your commitment to your financial goals.

After John saved his first $10,000, he bought himself a nice dinner. It didn’t feel like the kind of celebratory shopping you do when you splurge but rather the celebration of the hard work and dedication that got him there. Milestones are to celebrate for you to stay in the process and make it sustainable.

Final Thoughts: I liked the Quiet Strength of Consistency

While no one wants to see immediate attention grabbers, flashy strategies yielding quick wins, it’s the quiet steady force of consistency that is the long term wealth builder. By creating a habit of regular, manageable financials you set yourself up for longterm success. It’s not about making perfect every day, but trying to make good choices regularly.

Begin by picking one or two financial habits that you will start to commit to, enabling you to implement them in your own life. Saving a few dollars a day, setting up automatic savings or following a budget can grow exponentially to achieve huge financial growth! Building wealth is a marathon, not a sprint, and it’s the consistent use of the steady pace that gets you to the end.