Financial responsibility is typically thought of as either something you have or don’t have, but in reality there are plenty of ways to learn and practice it.
By far the most valuable skill that you can have to set yourself up for long-term financial success is financial responsibility. While being able to make money is obviously important, making money without knowing how to organize your finances properly will often leave you back at square one. Some people naturally have better financial instincts, but anyone can be financially responsible. Here are somethings to practice to help build these habits.
Find Consistent Sources of Income
Stability is key to building good financial habits. It is much easier to direct and prioritize certain aspects of your income towards goals when you have an awareness of how much money you will have coming in each week or each month. Thriving off of quick money with a lack of consistency is much harder to consistently manage with the uncertainty that it comes with.
Educate Yourself About Money
The good thing about trying to become more financially educated is that you are not alone, and as a result, there are plenty of resources out there to help you and others build up your skills and habits. From anything to google searches and Youtube videos, to books and online courses, you will find materials that can help you learn and grow.
Hold Yourself Accountable With a Budget
While budgeting is not only a good idea to help you direct percentages of your income to the right sources, it also is a structured system that is beneficial in creating financial discipline. With a budget, you will have to consciously stick to your goals within it, forcing you to consider where your money is going actively in a way that not having a budget would not call for.
Avoid Debt at All Costs
Building a strong credit profile is important, but you will need to learn how credit works and the dangers of too much debt to be financially responsible. Try and avoid credit cards with high-interest rates and higher fees if at all possible, and pay off what you owe on your cards as soon as you can so additional expenses do not begin to pile up against you.