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I am always talking about the family dynamic when it comes to finances. Especially when it comes to us parents.
We want to be financially successful and we want to make sure we are raising financially successful children also.
So, there are 12 financial habits of successful parents that are integral in helping parents achieve their financial success.
So let me introduce…..
12 Financial Habits of Successful Parents
1- They know exactly what their income is and where it comes from.
How much did you and your spouse get paid last week? Does your family earn money from shares or interest accounts? Do you know how much? Successful parents know exactly how much money they have earned and where it has come from. They account for it all and makes sure every cent they earn is working as best as it can for their family.
2- They know all of their expenses when they are due and rarely has nasty surprises.
Successful parents NEVER pay late fees because they are organized and knows what is due and when. They know their water bill is due every three months and have budgeted for it, they know that school tuition is due at the start of every month and they are always paid on time. They avoid nasty surprises as they can but knows they do pop up and guess what? There’s a budget for that too.
3- They never live a champagne lifestyle on a beer budget.
Successful parents never live on credit – they don’t purchase above their means and certainly does not live a champagne lifestyle on a beer budget. They understand that this is just an appearance of wealth and they have no desire for that, they are motivated by actual wealth and knows that means so much more than just the dollar figure in their bank account.
4- They have a budget for each pay and sticks to it.
Successful parents budget according to their pay frequency because they know that although they can predict your income, there’s no way to definitely predict their expenses. Budgets that are realistic and account for every known expense are far easier to stick to and allow the most financial control.
5- They pay off their most expensive debts first.
Successful parents know how much their debts are costing them and pays the most expensive ones off first. They also know the difference between debt with the most owing and debt that is costing the most money.
6- They understand the importance of investing in themselves.
Successful parents know their value, they know how important it is to invest in themselves and makes room for this in their budget. While budgeting can be hard for some, they know that by not limiting themselves from the things they enjoy will actually help them stick to their budget in the long run. They reward themselves when they reach financial goals and allows money for themselves in their budget – even if it is as simple as a manicure or game. They know how important is to feel good in themselves.
7- They avoid unnecessary expenses and cuts back where possible.
Successful parents know that they can easily save in excess of $25 a week from simply making coffee for themselves at home instead of picking one up on the way to work. They pack their lunches instead of always going out to buy lunch and they make sure that dinner is planned ahead of time to avoid fast food runs. They never have to pay late fees because their bills are always paid on time. Successful parents have far too many important things to invest their money in rather than spending unnecessarily.
8- They understand that just because you can afford it, it doesn’t mean you should purchase it.
Successful parents have had their share of buyer’s remorse so they know that just because you can afford to buy the latest toy, game, electronics, or latest fashion….doesn’t necessarily mean that you should purchase it. We all should have treat items and purchase the occasional bigger ticket item… but they are occasional and calculated expenses…not frequent and impulsive purchases.
9- They have savings.
Succesful parents have more than one savings and contribute to them regularly. They know they need a backup plan, they know that unexpected things happen that could possibly leave one of them without income, or an emergency could come up which could require a lot of money on their behalf. Whatever the circumstance, a successful parent is prepared.
10- They have money going towards a retirement fund.
Successful parents have retirement accounts outside of their employers, they live by the three legged stool analogy because they know that social security isn’t enough. Not only do they have these accounts but they make it a point to start them why they’re still young.
11- They make money talks a normal part of family time.
A successful parent knows the value of instilling money principals in their children from a young age. They know that modeling good financial habits will help them raise money smart kids and allow them to be financially successful in the future.
12- They don’t let money control their happiness.
Most importantly of all, they know that their happiness does not rely on the amount of money in their bank account.
Do you have any of these habits? If so, share which ones you have and which ones you are working on developing?
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