Are you continually facing financial challenges? You might be keeping yourself poor with habits you didn’t even realize were contributing to your situation. Dropping financial habits that could keep you poor is an effective first step towards securing your financial future.
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Make The Decision To Drop These 7 Financial Habits From Your Life:
Failure To Create An Adequate Emergency Fund
There’s no better prevention for financial disaster than an emergency fund that covers at least 3 months of living expenses. A short period of unemployment or a single, unexpected, major bill can be financially devastating. It will happen. Avoid believing it’s a matter of “if it ever happens.”
- Set aside whatever dollar amount you can manage and begin building an emergency fund. Even a few dollars each week is a start.
Habitually Paying Bills Late
Most consumers believe that credit card companies make most of their money from the high interest rates they charge. This isn’t true. It’s actually the late fees they collect. Nearly every bill you pay each month becomes more expensive if you’re late, even by a single day.
- Develop the financial habit of sitting down once a week and paying the bills that are coming due. Pay them at least 7 days in advance.
Inappropriate Use Of Credit Cards
Using credit cards to purchase unnecessary items you can’t afford is the worst use. Putting charges on your cards up to their limits and then only paying the minimum due will put you in a precarious position, lower your credit score, and keep you in debt for a long time.
- Resolve to limit the use of your credit card in emergency situations or to accumulate rewards if you pay off your balance in full each month.
Failing To Save Money From Each Paycheck
If you’re struggling to make ends meet, saving money often seems to be impossible. But this is the most critical time. Start saving 1 percent of your take-home pay and build it from there. If you don’t save any money, how is your situation going to change?
Buying Items You Don’t Need
After shelter, clothing, food, and medical care, most spending is optional to varying degrees. You probably don’t want to feel like you’re living in a cave and eating sticks, but you certainly spend money each month that could either be saved or spent more wisely.
Making Impulse Purchases
How many times did you make a big purchase and ran out of money at the end of the month? Impulse purchases are rarely satisfactory after the initial glow has been worn out. In fact, you’re probably resentful of the purchase after the financial pain comes home to roost.
- Take a few days to think about the purchase before making a final decision. You’ll often find the urge has subsided.
Failing To Contribute To Your Retirement
After forty years of work to make ends meet, wouldn’t it be nice to retire comfortably? Many seniors find themselves in difficult financial circumstances because they have not made an adequate contribution to their retirement. It’s never too late to get started.
Eliminating negative habits is the most effective way to begin your journey to financial abundance. Choose a habit and make an effort every day to get it out of your life. The most powerful action you can take on your finances is to eliminate your three most debilitating financial habits. Also, if you are new to budgeting, feel free to check out these five awesome tips for first time budgeters.