Money Secret: 7 Habits of Highly Effective Money Managers
Marathon runners are excellent savers. What can runners teach you about managing your money?
According to a study from Boise State University, marathon runners better than the average human at managing their finances. In fact, researchers deemed these individuals very “financially conscious.”
Habit #1:
Keep Your
Promises
Every time a runner
signs up for a marathon,
they’re making a promise to themselves that
they will train for that
event and try their hardest to get a good time.
Habit #2:
Take Control
& Stress Less
Runners tend to be less
stressed & have high selfesteem. When it comes to finances, happiness is correlated with better savings, lower
debt and more control over
spending decisions.
Habit #3:
Seek Out
Information
Runners devour the latest
studies on diet and training techniques, because
everything they learn gets
them closer to their goals.
Likewise with money! They
stay informed.
Habit #4:
Saving is
Mandatory
Rain or shine, runners
lace up the sneakers and
hit the pavement. Good
savers are the same. If
times are tight, the financially fit keep saving and
cutting back elsewhere.
Habit #6:
Know How
to Calculate
Habit #7:
Delay
Gratification
Research shows self-disciplined runners have higher
lifetime earnings and save
more for retirement. Conscientious people are reliable, meet deadlines and
pay their bills on time.
Runners do calculations
everyday, such as calculating their average minutes per mile. They know
how to use tools to help
them make good financial calculations.
Nothing says “delayed
gratification” like sweating to cross a finish line 45
miles down the road. Financially, studies show that impulsive behavior is linked to
poor saving skills.
Habit #5:
Get
Organized
How You Can Start Practicing These Habits
Set Yearly
Money Goals
Take Control of
Your Spending
Take Control of
Your Finances
Make Savings
Automatic
Make Reminders
Automatic
Understand
Compound Interest
Practice
Delayed Gratification
To help you stay on track, talk
about your gaols with your
friends. One goal many students have is to build a credit
score. To start, research credit
cards, find one with a low APR,
use it for a regular monthly expense, pay your bills on time,
and don’t max out your cards.
Then you will reach your goal!
The first step is to start tracking your spending. This will
help you understand if you
have unhealthy spending patterns & if you could cut spending. Use mint.com to see your
spending patterns.
Gather all your financial information - student loan amounts,
credit card info, investments in order to get a clear picture
of your finances so you can create action plans for saving, investing, & debt repayment.
Try to save a little each month,
especially for an emergency
fund. If something like a car repair comes up, you don’t want
to rely on high-interest credit
cards. Some students use extra
funds to make interest payments on unsubsidized student
loans, which are accruing interest while you’re in school.
Set alarms on your phone or
calendar so that you never
forget to pay a bill on time.
One late payment can lower
your credit score. And think
of paying off your credit
card debt as a goal akin to
finishing a race. It’s OK to
reward yourself with a little
splurge when you “finish.”
Earning compound interest
is how people get rich. You
earn interest not only on the
amount you put in a saving
or investing tool, but you also
earn interest on any interest
that accumulates. The earlier
you can save and invest, the
more free money - compound
interest - you’ll earn!
Building wealth is all about
delayed gratification. Start
with little things, like saying
no to the vending machine
and using the money you
don’t spend on a nice dinner
instead. Then move on to the
big stuff, like cutting back on
shopping so you can funnel
money toward savings.
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