The Motley Fool

How to have the right mentality with your money

Money is one of the most important aspects of our lives, so it’s integral to build the right mentality with your money.

Only so much money will flow into your bank account over the course of your life from working. Whether that’s $1 million over a lifetime, $2 million or more – it’s a set amount, we just don’t know what the number is until we stop working.

When you think about it in those terms I believe it’s easier to have more respect for your finances. If you let all of your money slip through your fingers like a sieve with nothing to show for it then you’ve lost some of your life’s financial firepower.

Obviously there are things worth spending money on if they are truly important to you. Travelling with family, seeing movies at Village Roadshow Ltd (ASX: VRL) cinemas or eating at a restaurant could all be described as good quality times or a waste of money, depending on what you value.

However you spend your money – and I’m not trying to judge – is up to you, but I think everyone needs to have a bit of a saving attitude with money. Like I already said, if you don’t save anything then you’re not building for anything and not helping out ‘future you’.

Saving 10% of your income, even if it’s just into a National Australia Bank Ltd (ASX: NAB) Ubank savings account, is a good idea. Spending 10% more than you earn will lead to financial disaster.

If you are consistently squirreling 10% (or more) of your income into savings over your whole life then you’ll do very well indeed, if you are able to. I know for some people their level of income would make this quite difficult. 

You’ll be even better off if you put some of your savings into shares for the long-term. Don’t forget, you don’t need to take on debt to invest in shares and can start with as little as $500.

Foolish takeaway

If you have a saving mentality then it’s almost unavoidable that you’ll become fairly wealthy after a decade or two.

I believe that if you regularly invest in solid, long-term ASX shares like these, you’ll be receiving a very healthy amount of cash as dividends annually in a few years from now.

Best 3 Dividend Share Ideas For 2019

With interest rates likely to stay at rock bottom for months (or YEARS) to come, income-minded investors have nowhere to turn... except dividend shares. That’s why The Motley Fool’s top analysts have just prepared a brand-new report, laying out their top 3 dividend bets for 2019.

Hint: These are 3 shares you’ve probably never come across before.

They’re not the banks. Not Woolies or Wesfarmers or any of the “usual suspects.”

We think these 3 shares offer solid growth prospects over the next 12 months. The first two currently offer fat, fully franked yields. The last is a surprising REIT offering you the benefits of being a landlord with none of the hassle! You’ll discover all three names and codes in "The Motley Fool’s Top 3 Dividend Shares for 2019."

Even better, your copy is free when you click the link below. Fair warning: This report is brand new and may not be available forever. Click the link below to be among the first investors to get access to this timely, important new research!

The names of these top 3 dividend bets are all included. But you will have to hurry. Depending on demand – and how quickly the share prices of these companies move – we may be forced to remove this report.

Click here to claim your free copy right now!

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of National Australia Bank Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

FREE REPORT: Five Cheap and Good Stocks to Buy now…

Our Motley Fool experts have FREE report, detailing 5 dirt cheap shares that you can buy today.

One stock is an Australian internet darling with a rock solid reputation and an exciting new business line that promises years (or even decades) of growth… while trading at an ultra-low price…

Another is a diversified conglomerate trading near a 52-week low all while offering a 2.7% fully franked yield…

Plus 3 more cheap bets that could position you to profit over the next 12 months!

See for yourself now. Simply click the link below to scoop up your FREE copy and discover all 5 shares. But you will want to hurry – this free report is available for a brief time only.

CLICK HERE FOR YOUR FREE REPORT!