Today I will be discussing 10 good money habits of people who are never broke.

A common New Year’s resolution for many adults surrounds money.  Maybe you want to get out of debt, save for a big trip, or grow your savings more than ever before.

All of these resolutions are great and I wish you the best of luck accomplishing them.  But today I want to discuss more than just reaching a certain amount of money as a goal.  I want to talk about good money habits of people who are never broke.

Not too long ago, I struggled pretty bad financially.

Every single week, I ran out of money days before payday. I lived payday to payday for years.

I didn’t have very good money habits and it caused A LOT of problems.

In all those years, I never stopped working towards a way to make a full-time living from home.

It’s exhausting always worrying and stressing about money and bills. I had to completely change everything I thought I knew about money and develop new money habits.

Money habits are developed by age 7, and it can be really hard to reverse those habits as we get older. But it’s possible.



10 Good Money Habits of People Who Are Never Broke

By changing your everyday money habits, it’ll have a positive effect on your overall financial situation so you’re not always broke.

Below are 10 habits you should look to implement to improve your finances.


They create a budget

This might sound boring and you may have heard it all before, but don’t think of it as being a restrictive budget. Instead, this budget is designed to help you understand how much you can save and invest for your future.

This is one of the simplest and most effective financial planning tools. By using a budget, you will create an awareness of where you are spending your money and this will give you control over your hard-earned cash.

By creating a budget, you can set an intention for your money and by setting estimated spending limits, you can learn to judge what is a responsible amount to spend (e.g., Holidays). This is a much better money habit to have because you can set guilt-free spending amounts.

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They have financial goals

Not setting financial goals was definitely one of my biggest mistakes.

You see, I was working for years and yet I didn’t have any savings and emergency fund.

And it wasn’t because I was not earning enough money, it was because I never really had to motivation to start it.

And you know why? It’s because I didn’t have any financial goals.

A goal requires you to take action.

Creating specific financial goals will not only help you determine the actions that you need to take to achieve that goal but it also gives you the motivation to work towards it.

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They clear their debts

If you really want to stabilise your life financially or otherwise, you must do all you can to stay out of debt. If you are in deficit, maybe due to a loan or credit card debt, then clearing it is the first goal you should strive to achieve.

There is no way you can possibly make headway if you are in debt! Paying off your debts would make your life a lot easier.

How to go about it?

First, don’t pay off your debt one-time. Splitting the payment in chunks will make it simple and feasible.

Let’s say you are in debt of £3000; splitting the payment into £500 per month will be a lot easier, especially if you don’t earn much more than £1,000 per month. In just six months, you would have cleared the debt.

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They have an emergency fund

Take some of the stress out of life by building up a solid emergency fund for rainy days.

It’s not a case of if you’ll need that money someday, it’s when.


Boilers break, cars need repairing, jobs don’t work out and unexpected bills can land on your doorstep at any moment. If you’re not financially prepared for these situations, then you can end up resorting to credit cards or loans to help you out. That’s how you end up in serious debt, and it makes an already stressful situation much, much worse.

Work on building up a rainy-day fund that’s enough to cover 3-6 months (or more if you can!) worth of bills and living expenses should you not be able to work for any reason.

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They save, save, save

Save as much as your lifestyle permits. People who never go broke are disciplined about their savings. One of the rules of saving is to save at least 6 months of your current living expenses. It will require you making you making a few lifestyle changes, and it may not be easy, but this is one case where the end indeed justifies the means.

Understand that having more money does not necessarily equate to more savings. So, don’t wait until you start earning more.


For instance, instead of eating out, you can pack your lunch and eat out only on special occasions. Of course, there are people who need to save time, as time is their currency, so eating out is a way to save time for them.

The whole point is to put saving above your spending. Set out an amount you want to save weekly, bi-weekly, monthly as the case may be, and spend from whatever is left. Don’t plan to save after your expenses. Always do it the other way round.



They put away their credit cards

I understand that credit cards are very convenient and yes if you pay off the full balance each month, those interest charges won’t hit you.

However, people with good money habits know that credit cards can become very expensive. It’s always so easy to overspend when you are using them and we should know that spending money that we don’t have is certainly a bad idea. Don’t buy now then worry about how you will pay it off later.


They know the difference between want and need

Another important habit to have is the ability to know the difference between a want and a need. Making a poor purchase on a want will give you temporary satisfaction, while buying something that you need will be enjoyed long after and won’t be a straining burden on your finances.

When you’re weighing a purchase, you need to take a look at whether it will add more value to your life, or if it will be a setback in your long-term goals.

That’s not to say that you should never buy something that brings pleasure, but you should always consider what value it adds to your life.


They have a positive money mindset

A money mindset is the attitude you have towards your financial situation.

If you have a negative mindset and continuously think this is the best you can do and it won’t get any better, then that’s where you’re going to be stuck.


If you always focus on what’s wrong, it’ll be impossible to stay motivated. By changing to a positive money mindset, you’ll start making better choices about your finances.

People who are never broke know that money always comes back to them. Just keep thinking to yourself or saying there’s more where that came from.

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 They take risks

Sometimes, you just have to take risks. I’m not talking about gambling with your life savings or anything too extreme. But the people who only ever play it safe will never know what could have been.

People who are never broke kept trying where others would have quit long before that. They learn from every mistake and failure and take another risk and try again. They try until they finally make it happen.


They stay frugal

No matter how much money they get, they limit their spending. They know that in order to maintain their wealth, they cannot increase their spending as their income grows.

They know that they can use the money to make even more money. Every pound/dollar spent on wants is a potential opportunity cost. These people know that and keep their spending low.

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Good money habits of people who are never broke – Final thought

We are all creatures of habit, and sometimes this can be a very bad thing. If you’ve struggled in the past with finances, I challenge you to use these principles, and in very little time you’ll be surprised how your circumstances will begin to change.

What are some other habits that can provide people with financial freedom that you know about? I would love to hear them below.

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