Responsibility is a characteristic implemented into us at a young age. It teaches us to be accountable for our actions, and not to place the blame on others. As we mature, it holds more weight, it now means you are the one in charge of your life, especially in regards to your financial situation. Financially successful people know that they are the only ones in charge of their financial outcome. Taking responsibility for your financial future doesn’t necessarily mean your income, but instead your savings and how you choose to spend your money.

“Millionaires don’t count on anyone else to make them rich, and they don’t blame anyone else if they fall short. They focus on things they can control and align their daily habits to the goals they’ve set for themselves.” – Chris Hogan, Everyday Millionaires: How Ordinary People Built Extraordinary Wealth — and How You Can Too

Becoming realistic about your spending habits will ultimately allow you to live a more stress-free life and be responsible in your spending. This can help to avoid debt, reach goals, and enjoy the things you truly desire. Change your mindset, change your outcome!

Here are some practical tips to become more responsible in your saving and spending:

Know Your Financial Situation

The first step to financial responsibility is determining where you currently sit in regards to funds and savings. Most likely you will be far from your overall goal, but already have steps in place to help you reach your final goal. If you are currently in debt, overcoming this can be a great step towards your future. Some things millionaires practice to improve their current standing include working with professionals, saving a portion of every paycheck, and overall self-improvement. It is important to understand that even little efforts to save more will impact your long-term wealth in large ways. Implementing these positive habits will transfer to multiple aspects of your life.

Spend Realistically     

Once you identify where you currently are financially and know where you want to end up, your spending habits should change to reflect this. Being financially responsible can be as simple as skipping your daily $6 latte and opting for a $2 drip coffee, saving you nearly $1500 a year. Little swaps like this can add up to big savings. This also means your dream vacation may not be realistic given your current situation, but with savings it could be perfect for 5 years down the road. Frivolous spending may provide short term happiness but demonstrating responsible spending will help you reach long-term goals.

Don’t Play the Victim       

Unplanned expenses, a bad investment, or a setback in savings are likely to happen along the way, but this is no reason to go back to old habits. Understanding that these things will happen and are not always in your control but that you are still responsible for your overall outcome is crucial. Millionaires know that their success is in their hands, a bad financial decision can be a great lesson and a reason to work even harder. Letting minor losses affect your overall success will end up in unreached potential.

Taking responsibility for your situation can be easy when things are going right, but the true test is how you will react when things go wrong. By starting with personal responsibility and a realization that small purchases have a large impact on your overall wealth, you can work up to bigger purchases as well. Remembering your overall goals will help you to spend responsibly and take accountability for your current financial situation. Once you change your mindset on how YOU impact your wealth, YOUR outcome will change!