10 Money Habits That Have Stood the Test of Time

10 Money Habits That Have Stood the Test of Time


Some trends come and go, but some things are always true. Money has been around in some form or another for a long time, so it only makes sense that people have learned how to use it wisely.

10 Money Habits That Have Stood the Test of Time

Money isn’t everything, but it’s close to it. Here are ten money habits that will never steer you wrong because they have stood the test of time, plus a giveaway training for more wealth tips at the end:

Practice intelligent risk management.

Putting all your money in a savings account will only make you rich if you make much money and live very cheaply.

That interest rate of 0.3% might be as safe as it gets. But higher-risk investments are better in the long run than low-interest investments that bring in income. In today’s terms, stocks are better than bonds or savings accounts for long-term investments.

Taking higher-risk investments can make many people uncomfortable. If that’s you, it could mean you need more understanding of risk management. It’s a learnable skill, and many books are available about it. 

If there is one critical skill you need to learn, it’s risk management. (Follow us if you are interested in this topic, as we will expound on it in the future.) That’s because risk management impacts all areas of life.

Allocate money for emergencies.

Your long-term plans can go well if you have saved money to deal with the inevitable problems everyone faces. If you have an emergency fund, you won’t have to take money out of your retirement fund to pay your bills when something big comes up.

The amount you put into your emergency account is irrelevant in the beginning. The best practice is to allocate a portion of your monthly income. You can open a new bank account at your existing bank and transfer the amount regularly. Get into this habit as early as you can. 


If you put all your eggs in one basket, and something happens to that basket, it could be a disaster. If you lose a lot of money, you might not get it back for ten years or more. By spreading out your investments, you can limit how much you lose.

Diversification is a form of risk management. It’s critical, especially if you are starting, since you still need to gain the required skills to take more risks.

Be patient.

Most of the time, successful investors sit and don’t buy or sell stocks. It can take several years before the price matches the value of an outstanding stock. Many investors have sold way too soon, only to find out later that they should have waited.

Getting rich takes time, but if you keep putting away a few hundred dollars a month, it will add up to something big if you give it time.

Refrain from trying to predict the market.

Trying to predict the market is a waste of time. More brilliant people have tried to use supercomputers and failed horribly. Now is the best time to put money away. There may be times when it takes more work to find suitable investments, but now is always the best time. There is always a good opportunity somewhere, even in bad times, if you know where to look.

You need to define your criteria for buying investments. Avoid investing blindly. Understand the basics of investing. The good news is that the skills are easier to learn in the information age. Go online to get started and get comfortable with the process.

Be picky.

When buying managed investments like mutual funds, think about the management fee. Are you getting what you paid for? Make sure the extra money is worth it for the management team.

Being picky means that you define conditions when making decisions, especially financial ones. It limits your emotions from making your decisions for you. 

Buy low.

Look for investments that you can get at a reasonable price. It can be profitable to pay what something is worth and have its value go up over time, but it can be even more profitable to pay much less than something is worth. A good company that’s temporarily having a lousy time can be a good investment over time. A bad company is a bad investment, no matter what. But be sure to define your investing criteria, test them, and apply them consistently.

Take action.

Wishing and thinking take the same energy as making a plan and carrying it out. Do something instead of just daydreaming all the time. Even a small amount of financial planning and small but consistent steps can make a big difference in the long run.

Minimize or avoid debts.

The debt needed to buy a house is manageable if you exercise good financial planning. But you should look into any other kinds of debt more carefully. No one wants to owe more money.

The keyword here is usually, as not all debts are bad. There is such a thing as good debt. But if you can’t differentiate the two, educate yourself or stay away from debt until you do.

Reduce taxes legally.

Taxes should be as low as possible for everyone. Paying as little tax as possible is work that is well worth it. You should only give money away if it’s for a good cause, and the IRS is not a good cause. 

Learn to differentiate between tax evasion and tax avoidance. The former is illegal, while the latter is legally acceptable. The amount you save can add up over time because it’s annual. Talk to your accountant about how you can reduce your taxes without the tax authorities knocking on your door.


Money is just like any other game in that it has rules. How have you been following the rules? What rules have you been breaking? If you stick to these ten rules, you’ll be well on your way to being good with money.

Want more financial tips? Check out this giveaway that helps you unlock the keys to getting wealthy. Follow us on our social media profiles ( FB or Twitter). In the meantime, check out our other wealth-related articles.

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