8 Financial Habits I’ll Be Adopting This Year

[arve url="https://www.youtube.com/watch?v=eqTYCSRf-nA" mode="lazyload" align="center" /] Here are 8 financial habits I'm focusing on in 2019 to move myself forward financially. Getting out of debt, achieving financial freedom and moving on to real wealth. 0:00 - 2018 wasn't my best year financially 1:05 - #1: Budgeting and being frugal 2:08 - #2: Pay yourself first 3:04 - #3: Snowball my debt 3:38 - #4: Expanding my minimalism 4:56 - #5: Selling my excess stuff 6:12: - #6: Always be improving by 1% 7:37 - #7: Constantly creating passive income assets 9:12 - #8: Practicing gratitude, compassion and pride 11:40 - My 8 habits to get me debt free and financially free by 2020 12:44 - I'm so excited for 2019 and moving towards financial freedom Resources Mentioned in This Episode: Atomic Habits Book - https://onproperty.com.au/atomichabits Barefoot Investor Bank Accounts and Budgets Explained - https://www.youtube.com/watch?v=YMKss1bLycw My Minimalistic Wardrobe - https://www.youtube.com/watch?v=xIEF5_ATaio Recommended Videos 10 Things We Are Cutting Out of Our Budget - https://www.youtube.com/watch?v=eX5DoSRFjN4 Transcription: In 2018 I didn't have the best year financially. My businesses were spinning off enough passive income that I didn't really need to work or worry about money, so I didn't. I didn't really work or I didn't really worry about money and I focused on a personal things in my life. Went through a whole bunch of stuff, discovered a lot about myself, overcame depression, had a great year on the personal side of things, but not so much on the financial side of things and 2019 is going to be a big year for me financially, moving myself forward, paying myself out of debt, getting out of debt, growing my passive income as well so that I'm back to that position of financial freedom and then moving onto wealth and moving onto that longterm financial freedom. So here are eight financial habits I'll be adopting this year to move me closer to my goal of being debt free and being financially free. Hi, I'm Ryan from on property. I help people achieve financial freedom and you're really excited about 2019. The first thing that I'll be doing is just budgeting and being frugal. With my money, so keeping track of my money, I've got a system set up now that works really well for me when it comes to budgeting. It's very similar to what the barefoot investor recommends, but I did some slight tweaks to it. You can go ahead and check out the video on how I do that by just searching barefoot, investor bank accounts in Google or in Youtube and I'll link to that video in the description down below, but I've got a system set up where budgeting becomes really easy and my focus is just on my weekly living expenses so all my fixed expenses are in place and being frugal in that aspect. They're all being paid for. My focus is on my weekly expenses and how I can spend as least as possible during the week so I've got more money freed up to pay off debt and to grow my wealth. So that's the first habit that I'll be doing is budgeting. Focusing on that and tracking that and seeing how I'm doing. The second habit is one that I started last year that I'm going to continue into this year, and that's paying yourself first. I really believe in this principle. I believe in this habit, in this action that when you are paid, pay yourself first so when you're paid money first goes towards your wealth goals because if you're not doing it, no one else is going to, and if it's not the number one priority of your finances, chances are it's not going to happen. So each week I get paid by my business and so each week money from that will go towards paying off debt or building up wealth, and so that's going to be paying myself first. It's going to happen automatically as soon as I get paid, so I don't see that money. It's going to happen in the background so I can focus on more important things like managing my finances and earning more money. Number three is I'm going to snowball and my debt, so I got a couple of deaths in my life. Some are smaller than others and so what I'm going to do is use the snowball technique to pay off my debt, so I'm going to focus on the smallest amounts of debt first and then work my way up to paying off the bigger amounts of debt. So basically you pay off the smallest ones first because then you get the emotional high from paying off debt as well. You no longer have to focus on that debt anymore, so you're getting success along the way and that's how I'm going to be paying off my debt. The four thing I'm going to be doing is minimalism. I had done this in my life over the last two years. In fact, I did a two hour of my minimalist wardrobe, which you can see is very minimalistic. A black and white t shirts and white singlets and that's about it. So my wardrobe is very minimalistic, but there's other parts of my life that can be minimalistic as well when it comes to furniture, when it comes to home wares and things like that. I'll be downsizing into a smaller place because I'm moving to Sydney anyway, but we'll be focusing on living minimalistic because a, it saves money on not focusing on things, but be. That just then frees me up to focus on other things. What I love about my minimalistic wardrobe is that I feel really good in everything that I wear, so I no longer have to worry about that. That problem, that choice is sold in my life. I can go on to focus on other things as well. I'm really looking forward to having a minimalistic apartment and a minimalistic lifestyle so that I can really enjoy that, but not have to spend heaps of time cleaning and packing up after the kids because we have so much stuff and I'm finding I'm spending a lot of time doing that at the moment. So minimalism and expanding on my limit minimalism will be something that I'll be doing this year. The fifth thing kind of goes along with that and that's selling excess stuff. So let me just show you this box I have. Okay. So this is my box and as you can see there's a lot of tech stuff in here. In fact, the majority of this box is filled with these game cube controllers. This one in particular, this gold one is worth about $200. That's worth about 25, maybe $30. This one may be 40 or $50. Step number five or the fifth thing that I'll be doing is selling excess stuff. So I love super smash brothers melee or used to host tournament. I was super passionate about it. I still love it, but it's not a core passion of mine anymore. So I don't need 20 or 30 controllers anymore all up. They're probably worth about a thousand dollars maybe. They've actually held their value really well, so I'm actually really happy with that. There were a better investment than cryptocurrency definitely, but selling excess stuff will be something that we'll be doing. So that ties in with minimalism, but it's also getting some extra money as well, which I can then use to snowball the debts. The sixth thing I'll be doing is always looking to improve by one percent. I got this idea from the book atomic habits, which was one of my favorite reads in 2018. I'll link that up in the description down below if you want to grab that book yourself, but in that book it talks about this concept which I've heard before, which is rather than trying to take these big leaps in personal development and improvement in wealth building, just improve yourself by one percent than improve yourself by one percent. Again, and so as you do this, you're obviously compounding, so I'm going to be doing this with my wealth as well. It all comes down to little decisions as to how can I be one percent better going to apply that to budgeting. Definitely how can I spend one percent less? How can I become slightly better at spending less money, but I'm also going to be applying that to the side of my life where I've earned money in my business. How can I become one percent better at creating videos? How can I become one percent better at communicating at writing emails, at creating that landing page and doing all the little things in my business? As I improved each aspect of my business by one percent, all those little one percent are gonna add up to increase my income, so that's something that we'll be focusing on is constantly just that constant steady stream of improvement by just one percent. The seventh financial habit I'll be doing is constantly creating passive income assets, so I've got some major assets in my life in terms of my businesses, but I'm also going to be focusing on expanding that. Me And ben have talked about this. He talks about a bicycle wheel with the hub in the middle and basically each spoke of that wheel is income coming into your life. So basically my bicycle wheel has a few spokes at the moment, but I want to build up those spokes and have multiple sources of passive income. So in business I will expand and have multiple sources of passive income, but also as I pay off debt and as I begin to invest, I want to build up that passive income as well. So I'll be creating assets in my business, but I'll also be purchasing assets maybe in the form of stocks. Maybe in the form of properties, who knows, but I'll constantly be focusing on creating those passive income streams because something that I found in 2018 this year was that when you are going through a hard time, having assets that generate passive income are your lifeline. They are your savior, and so moving forward more than I care about capital growth more than I care about excessive. I care about passive income because that is an insurance policy against anything life throws at you, so I'm going to constantly focus on building up that passive income rather than trying to make big chunks of money. It's all going to be about more passive income and the eighth financial habit doesn't really sound like your financial habits, but that is practicing gratitude,