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
10 Things We Are Cutting Out of Our Budget – https://www.youtube.com/watch?v=eX5DoSRFjN4
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, compassion and pride. There’s a great book I read, which I can’t remember off the top of my head. Okay. It’s this one called emotional success by David Destino, Phd. So in this book he talks about when it comes to being motivated, when it comes to making better decisions for our long term, for our future selves. That includes sacrificing financially today, not buying that coffee so that you can invest that money so you can be financially free faster, not making dumb financial decisions, but investing for the future when it comes to being able to make better future decisions.
You can try and rely on your willpower, which is a limited asset and isn’t necessarily a very good strategy or through actually practicing gratitude, compassion, and pride. You kind of actually hack your brain in a way to naturally make you more inclined to make better decisions in the present for the future, so by being grateful for what you have, by practicing compassion towards others and by taking pride in the work that you do and who you are in the way that you present yourself. By practicing these things, you’re naturally more likely to make better financial decisions for your future. So this doesn’t sound like a financial habit, but because it’s an emotional hack that will increase your chances of making good decisions. Plus it’s gonna. Make you happier, make you feel good in the moment, cause you to live a better life, have better relationships, have a more positive impact on people, kind of ticks all the boxes.
Really, so gratitude, compassion and pride. Now, often people say pride as a negative thing, being proud, but he talks about it as in taking pride in something, taking pride in what you do in who you are, lead you to then make better decisions almost because your pride is on the line, but it’s like a healthy source of pride. Like I take pride in these videos and episodes that I create for you guys because I take pride in who I am as an investor, as a business person, as a content creator, as someone who communicates to people like yourself. I take pride in that and that leads me to do better work and make better decisions so they have a financial habits. I’ll be adopting this year to move me towards my goal of getting debt-free. We’ll try and do it in a year. I don’t know if we’ll get it done this year, but definitely in 20 slash 20, we want to be debt free.
We want to be also financially free by the end of the year through the passive income from my businesses. Again, hoping by the end of the year, maybe by 2020, but these are some of the financial habits that I’ll be adopting in order to achieve that. So budgeting and being frugal, paying myself a snowballing, those debts, minimalism, selling my excess staff, always improving by one percent and if you take anything away, any of these steps, that improvement by one percent is probably going to be the biggest thing, the most important point, the biggest thing that I do to move me towards my goals, always just focusing on getting better. One small improvement at a time, creating multiple passive income streams and then practicing gratitude, compassion, and pride. So I hope you enjoyed it. Today’s episode. I’m so excited for 2019, 2019 is going to be a great year and I hope you will join me on the journey towards moving towards financial freedom, towards becoming a better version of yourself, but towards being able to live your authentic truth and your true self and give so much value to the world. 20 19 is going to be epic. While you’re here. Go ahead and check out a video I did with Ben Everingham on 10 things that we’re cutting out of our budget this year in order to save money. So we go through a bunch of different things that are saving us money and you might be able to save money on one or two of those items as well. So check that are out and links in the description down below and until next time you know what it is, you know to come and stay positive.