I recently finished Atomic Habits by @JamesClear, and can& #39;t say enough about it.

Since good habits are foundational to managing your money, I have compiled my key takeaways for you all in this thread https://abs.twimg.com/emoji/v2/... draggable="false" alt="👇" title="Rückhand Zeigefinger nach unten" aria-label="Emoji: Rückhand Zeigefinger nach unten">and related them back to personal finance.

I hope you enjoy!
First, what is a habit?

It& #39;s a behavior you perform regularly and in most cases automatically.

https://abs.twimg.com/emoji/v2/... draggable="false" alt="💰" title="Geldsack" aria-label="Emoji: Geldsack"> Translation: good habits aren& #39;t done once. You need to develop the right process and stay the course for the long haul.
Words of Wisdom:

You don& #39;t fall up to your goals, you fall down to your habits

https://abs.twimg.com/emoji/v2/... draggable="false" alt="💰" title="Geldsack" aria-label="Emoji: Geldsack"> Translation: your goal may be to be a millionaire, but you won& #39;t fall up to that. You& #39;ll fall down to however much money the process you have instilled provides for you.
Focus on aggregation of marginal 1% gains. Time compounds whatever you feed it.

https://abs.twimg.com/emoji/v2/... draggable="false" alt="💰" title="Geldsack" aria-label="Emoji: Geldsack"> Translation: You won& #39;t become a millionaire over night. All you have to do is be consistent with your contributions, step aside, and let time do the rest. https://twitter.com/visualizevalue/status/1313259855839465472?s=20">https://twitter.com/visualize...
Common misconception: Massive success requires massive action

https://abs.twimg.com/emoji/v2/... draggable="false" alt="💰" title="Geldsack" aria-label="Emoji: Geldsack"> Translation: slow and steady wins the race. You don& #39;t have to get lucky and find the next $AMZN to hit your goals. Invest regularly, over a long period of time, and let the market do its thing.
Improving 1% isn& #39;t particularly noticeable, but a slight change in your daily habits drastically changes the trajectory of your end result.

https://abs.twimg.com/emoji/v2/... draggable="false" alt="💰" title="Geldsack" aria-label="Emoji: Geldsack"> Translation: If you& #39;re investing 10% now, bump it to 11%. You won& #39;t even notice the difference but the outcome is significant.
Outcomes are lagging measures of your habits

https://abs.twimg.com/emoji/v2/... draggable="false" alt="💰" title="Geldsack" aria-label="Emoji: Geldsack"> Translation: The financial decisions you make today will dictate your outcome later. Make sure you are making the right decisions today. As @CJ_Johnson17th preaches, nobody is coming to save you.
The most powerful outcomes are delayed. Habits need to persist thru a period of NO results before they& #39;ll stick.

https://abs.twimg.com/emoji/v2/... draggable="false" alt="💰" title="Geldsack" aria-label="Emoji: Geldsack">Translation: The first $100k is the hardest. It& #39;ll feel like you are making zero progress. It takes many YEARS. And then one day you& #39;ll wake up and you made it.
Goals are sexy, systems are not.

Ditch your goals and focus on your systems.

https://abs.twimg.com/emoji/v2/... draggable="false" alt="💰" title="Geldsack" aria-label="Emoji: Geldsack">Translation: Stop thinking about money goals in terms of years or decades. What systems do you have in place this PAY PERIOD? What is your system to effectively manage your money in the present?
Goals are short term and only change your life for a moment. Fall in love with the process. It is your commitment to this process that determines your progress.

https://abs.twimg.com/emoji/v2/... draggable="false" alt="💰" title="Geldsack" aria-label="Emoji: Geldsack">Translation: if you seek to save $500, you’ll stop as soon as you hit your goal. Shift focus to the process.
Goals set the direction, but it& #39;s the system that allows you to get from point A to point B.

https://abs.twimg.com/emoji/v2/... draggable="false" alt="💰" title="Geldsack" aria-label="Emoji: Geldsack">Translation: You want this path to be linear, but I promise you that won& #39;t be the case.

(Photo courtesy of @visualizevalue and @jackbutcher)
Fix the inputs, and outputs will fix themselves.

https://abs.twimg.com/emoji/v2/... draggable="false" alt="💰" title="Geldsack" aria-label="Emoji: Geldsack">Translation: If you fix the money you contribute towards investing, the output will take care of itself. Don& #39;t worry about your money goal, worry about the inputs into your system.
Don& #39;t begin the process of changing your habits by focusing on what you want to achieve (outcome). Focus on who you want to become (lifestyle).

https://abs.twimg.com/emoji/v2/... draggable="false" alt="💰" title="Geldsack" aria-label="Emoji: Geldsack">Translation: You may want more money, but if you identify as someone who spends rather than creates, you won& #39;t change.
If you want to adopt good habits, you have to make them easy. Human behavior follows the law of least effort.

https://abs.twimg.com/emoji/v2/... draggable="false" alt="💰" title="Geldsack" aria-label="Emoji: Geldsack">Translation: Make budgeting & investing easy. Setup your accounts. Direct Deposit. Auto-Invest Plans.

You won& #39;t miss the money you never see
Success is less about making good habits easy, and more about making bad habits hard.

Make bad habits impractical.

https://abs.twimg.com/emoji/v2/... draggable="false" alt="💰" title="Geldsack" aria-label="Emoji: Geldsack">Translation: If you spend too much, make spending difficult. Cut up credit cards, unsubscribe from retailer e-mails, implement 48 hour rule on new purchases.
The key to start a habit is implementation intention.

This is the plan you make beforehand about when and where to act.

https://abs.twimg.com/emoji/v2/... draggable="false" alt="💰" title="Geldsack" aria-label="Emoji: Geldsack">Translation: Plot your move and think in micro segments (pay periods). "When my paycheck hits, I will move $__ to savings".
Diderot Effect: Tendency for one purchase to lead to another, creating a spiral of unintended consumption.

https://abs.twimg.com/emoji/v2/... draggable="false" alt="💰" title="Geldsack" aria-label="Emoji: Geldsack">Translation: Your initial innocent purchase leads to follow up purchases. That new couch, now makes you question the layout of your living room & all decorations.
An effective way to build better habits is join a culture where your desired behavior is normal.

https://abs.twimg.com/emoji/v2/... draggable="false" alt="💰" title="Geldsack" aria-label="Emoji: Geldsack">Translation: connect & engage with like-minded people.

Here are a few of my favorites:
@CJ_Johnson17th
@DecadeInvestor
@thewealthdad
@ChroniclesNate
@DivCultivator
Habits form more based on frequency, not time. To master a habit, start with repetition, not perfection.

https://abs.twimg.com/emoji/v2/... draggable="false" alt="💰" title="Geldsack" aria-label="Emoji: Geldsack">Translation: it& #39;s less important to "have it all figured out" when starting. It& #39;s FAR more important simply to START. Don& #39;t delay any more.
The problem isn& #39;t knowledge. The problem is consistency and action.

https://abs.twimg.com/emoji/v2/... draggable="false" alt="💰" title="Geldsack" aria-label="Emoji: Geldsack">Translation: Everybody knows you should save & invest your money. The problem is the system and how they put their process into action.
The cost of your good habits are in the present. The cost of your bad habits are in the future.

https://abs.twimg.com/emoji/v2/... draggable="false" alt="💰" title="Geldsack" aria-label="Emoji: Geldsack">Translation: the more immediate pleasure you get from a purchase, the more strongly you should question whether it aligns with your long-term goals.

Delayed Gratification is https://abs.twimg.com/emoji/v2/... draggable="false" alt="👌" title="Ok hand" aria-label="Emoji: Ok hand">
Your actions reveal how badly you want something.

Reward is on the other side of sacrifice

https://abs.twimg.com/emoji/v2/... draggable="false" alt="💰" title="Geldsack" aria-label="Emoji: Geldsack">Translation: If you want to save money, but constantly go out to eat, go shopping, and buy things you don& #39;t need. You don& #39;t really want to save money.
Pick the right habit and progress is easy. Pick the wrong habit and life is a struggle.

https://abs.twimg.com/emoji/v2/... draggable="false" alt="💰" title="Geldsack" aria-label="Emoji: Geldsack">Translation: Live below your means, progress is easy. Go into debt and spend more than you make, life will forever be a challenge for you.

Simple as that.
Habits get boring over time. Fall in love with boredom.

https://abs.twimg.com/emoji/v2/... draggable="false" alt="💰" title="Geldsack" aria-label="Emoji: Geldsack">Translation - Invest in Index Funds. They are as boring as you can get. Invest every month, year after year, and watch your wealth explode.

Need to know more about Index Funds? @TheWealthDad is your guy.
For those that made it this far, sincerely, thank you.

This book was full of https://abs.twimg.com/emoji/v2/... draggable="false" alt="💎" title="Edelstein" aria-label="Emoji: Edelstein">s so I highly recommend giving it a read.

For the other account mentions in the thread, they make this community what it is and allow you to connect the dots. Thank you for paving the way!
You can follow @DivvyUp_King.
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