Anyone who is going to create wealth must learn to break certain bad money habits and replace them with wealth-building habits. These bad money habits might seem benign to you but what you don’t know is that they are actually costing you a great deal.
So, if you want to make it big financially, here are some bad money habits you must ditch (sito italiano):
1. Late payments: Late payments aren’t just that – late payments. They actually amount to so much more. If you continue to miss your payments, you can ultimately lower your credit score. And you know what that means, no borrowing for that house you’ve been eyeing in that beautiful boulevard. To help you ensure that you always pay on time, you can set up online automatic payments for your fixed expenses like your rent and such. If those are not payable online, then set up a calendar reminder to buzz on the same day of every month. This way, it becomes a routine for you.
2. Not paying your credit card balance in full: It’s often tempting to pay the minimum required of you by your credit card company at the end of the month, but this can be very costly. That is, if you were required to pay a 1 to 3 percentage of your balance, and you opt for the 1% option because you’re tight on cash, you’ll soon be in trouble. Instead, arrange things such that, every month, the full balance you owe on your credit card is deducted from your checking account without fail.
3. Pushing investments till you’re “richer”: You don’t need to earn a massive income to invest. Neither do you need to be a financial expert. Plus, with compound interest, there is no better time to invest that right now. You can start by signing up for your employer’s 401(k) plan, or a traditional IRA. A traditional IRA helps you save for your retirement but is also quite lenient on the taxes. It’s perhaps the easiest way to invest. The key is to begin now. Set aside a little each month if you must. But, invest, you must.
4. Not having a savings goal piastra elettrica: Planning to save without a specific goal – like every other thing – is practically impossible. You need to have a goal and then set a plan towards achieving it. You can begin by determining what major purchase you’d like to embark on. It could be a car, a home or an education trust fund for your kids. When the goal is set, calculate how long you’d need to save to hit the target. Again, arrange for money to automatically be transferred to another account opened for that specific purpose.
5. Spending as much as you earn: Aka living from paycheck to paycheck. This is a very bad habit that often spirals down to credit card debt fast. With this kind of lifestyle, you won’t be able to save significantly at all. Always live below your means; never at, and, definitely, never beyond.