As an entrepreneur, your personal money mindset determines whether your company is a success or a failure. You might have a great idea, a well thought-out business plan and you are motivated and committed… but if your money mindset is not supporting you, you will end up sabotaging your company’s growth!

You are likely to carry several “money blocks”, especially if you don’t come from a family of successful entrepreneurs or if you struggle reaching your financial goals.

The most effective way to transform your financial mindset is by developing supporting money habits, like the following ten habits:

1. Monitor Your Expenses

Your golden rule should be spending less than you earn. Keep track on your income, regular expenses and additional expenses, and don’t forget to dedicate an amount for savings. This will give you a greater insight into where your money is going and a better sense of control. Most important – it helps you reach your financial goals.

2. Prioritize Your Spending

Prioritize your monthly expenses. Housing, food, and utility bills should be on top of the list. Then, analyze where else your money goes and put this list in order of priority. Differentiate between what is essential, and what is “nice to have”. When you know you’re saving for something important, it makes it much easier to say “no” to the morning café latte or the newest iPhone.

3. Avoid Impulse Purchases

When you are at a store or an online shop and you find yourself ready to buy something that you didn’t plan buying before, DON’T BUY IT. Make a rule that every time you find yourself in this situation you take 24 hours to think whether you really need it.

4. Save a Little Every Month

Having a contingency backup equivalent to 6-12 months of earnings is a must. We call it financial safety. When your contingency fund is full, keep saving every month for your long-term, bigger purchases. Getting used to saving 10% of your income and living on 90% of your income – is one of the best money habits to develop.

5. Be Frugal

Being frugal doesn’t mean you do not love yourself, and neither does it mean you’re cheap. It teaches you to focus on what is truly important and finding creative ways to achieve it without necessarily spending a lot of money. You soon learn to be content with what you have instead of needing to “keep up with the Joneses”.

6. Invest to Create Passive Income

If you have extra money after paying your essential monthly expenses, investing back in your business is the best strategy. Investing it in developing sources of passive income is the fastest and safest way to achieve financial freedom.

7. Pay Yourself First

Pay yourself first, as if you’re an employee. That means setting aside money for your financial goals before you spend money. Most people pay first for their needs or spending on wants, and only then saving money. But you should start paying yourself first, even before you pay your bills.

8. Don’t Pay Yourself Too Much

Don’t make the common mistake of confusing revenue with profit. Money coming in doesn’t mean you can pay yourself a big chunk – not initially! Only when your profit margin grows, give yourself a small bonus.

9. Separate Personal and Business Finances

Keep your personal and business income separate at all times. This will help ensure you treat your business like the independent entity that it is. It also eliminates any situation where you might be tempted to withdraw money from the business account for personal use.

10. Give Back

It may seem counterintuitive to give generously your time and money, but this is an important investment. Even donating a few euros a month to a cause you’re passionate about helps you connect with your community and be a part of something bigger than yourself. This is the first step in becoming an Enlightened Millionaire.

Now It’s YOUR Turn

For five minutes… come up with as many ideas as you can… what supportive money habits you should develop?