Sven habits to boost your financial IQ

If your goal is a prosperous year, there is more than one way to get there. You could boost your
401(k) or invest in a individual retirement account. You can pay off high interest debt, build your
emergency fund and save for a specific goal. There are even a few things you can check off your
financial checklist in five minutes or less.

Still, changing your mindset is also important if you want to build wealth. If you never learn
more about money, how can you make long-lasting changes or avoid past mistakes? If you're
looking to boost your financial intelligence, here are seven habits to pick up in the new year.

1. Read about personal finance

Many people looking to learn personal finance start their journey with a tried and true money
book. Popular go-tos include Robert Kiyosaki’s “Rich Dad, Poor Dad,” David Bach’s “The
Automatic Millionaire” and “The Total Money Makeover” by Dave Ramsey, but there are plenty
of books that can help you think about money in a new way. Pick up one (or two) in financial
subjects that align with your goals, whether that’s budgeting, debt repayment or investing. (Psst:
You can also check out our Moneygenius Magazine for year-round personal finance tips and
tricks.)

2. Track your net worth

If you focus only on how much you earn, it’s easy to think you’re getting richer when you’re
really not. Bringing in more money than you did last year — even at six figures — won’t help
you grow wealth if you spend it all. But tracking your net worth – a term used to describe your
assets minus your liabilities - puts your income in perspective. It helps you see how your
liabilities change over time and how much money you’re actually banking. You can track your
net worth manually, but there are also investment apps that can do it for you.

3. Track your spending

Ready to have a real financial awakening? Track your spending for a while. This habit takes a
little leg work, but it shows you where your money's going. Whether you choose to write down
your purchases, use bank and credit card statements or special software, you’ll have nowhere to
hide once you see how much you actually spend on food, entertainment, and extras every month.
(And, if you don't know how to start cataloging, here's a simple budgeting spreadheet that can
help.)

4. Meet with a financial adviser &/or tax planner

As your financial situation gets more complex, meeting with a fee-only financial planner who
specializes in maxmizing investments may make you privy to some tip or strategy you're
unfamiliar with. On the flip side, meeting with an accountant or tax planner also has advantages
– especially with all the upcoming tax changes in 2018. Ideally, you’ll want to pay the smallest
tax bill ... without breaking the law. A tax planner can help you do just that, while also helping
you minimize taxes in the future.

5. Invest in yourself

Maybe you want to invest in a new course to learn new skills, or perhaps you want a certification
that could lead to higher pay and better job prospects. Sometimes, the best money investment
anyone can make isn't bonds or stocks — it's personal development. After all, what better tool do
you have to grow wealth than you?

6. Network

By reaching out and connecting with people in your niche, you keep your finger on the pulse of
your industry and make valuable contacts. You never know when a new relationship can lead to
an exciting new job prospect, partnership or career opportunity.

7. Focus on what you can control

Sometimes, life seems unmanageable and unpredictable. Even if you learn all you can about
money, you can’t control what happens in the stock market or if the value of your home goes
down. With so much completely out of our hands, many people wonder if there’s a point in
trying to achieve financial health. But don't despair: Focusing on what you can control absolutely
leaves you better off. For instance, while you can't change the ebb and flow of the stock market,
you can control how much you invest. And, if you can’t control whether you get a raise at work,
you can control how you spend your paycheck.

Working hard on a money makeover? Here's eight pieces of timeless financial advice to consider.