7 Habits to Help You Make Smarter Money Decisions Establishing good behaviors, like focusing on the rewards of savings over products, can help you down a positive path.

By Phil Town

Opinions expressed by Entrepreneur contributors are their own.

For many people, financial struggles are often the result of people unsure how to spend the money they make. In this video, Entrepreneur Network partner Phil Town offers seven tips to spend your money wisely.

To start, make sure to track your finances. This is an important step to determine exactly where your income is going.

Moreover, think about the long-term benefits and drawkbacks of purchases. As Town puts it, many of the purchases we make are driven by impulse, made in an effort to impress other people who may not even notice. When making purchases -- especially big purchases -- think about whether the purchase will invite unwanted debt and if it will build value.

Town also recommends only putting money on credit cards you are sure you can pay it off. To avoid relying on credit cards, Town suggests setting aside the money you will spend each month in individual envelopes.

Finally, if there's one habit that will not drain your budget it is investing. Putting money into quality companies that will grow over time is a consistently smart way to use your income.

Click the video to hear all of Town's tips.

Related: Still Considering Investing in Cryptocurrency? Here's What You Need to Know.

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Phil Town is an Investment Advisor, Hedge Fund Manager, 2x New York Times Best-Selling Author of Rule #1 & Payback Time, and Ex-Grand Canyon River Rafting Guide. Rule #1 Investing is Warren Buffett style investing, teaching you how to buy businesses on sale, with little risk and 15 percent returns. In fact, Rule #1 investing is practically immune to the ups and downs of the stock market.

More from Phil Town

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3 Bad Investing Habits You Should Drop Before It's Too Late

Nervous About Investing? Think About Your Money This Way.

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