7 Money Habits That Keep You Poor|Stop the self sabotage
Do you perceive yourself as facing financial challenges? You might be keeping yourself poor with habits you didn’t even detect were contributing to your situation. Relieve yourself in these money habits that keep you poor. Put up a plan to effectively strengthen your secured financial future.
Make the decision today to stop these financial habits from your life.
1. Failure to create an adequate emergency fund.
There’s no better impediment to 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 disastrous. It will happen. Stop believing it’s a matter of “if it ever happens.” Set aside whatever dollar amount you can manage and commence building an emergency fund. Even a few dollars each week is a start.
2. 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.
We recommend you develop the habit of sitting down once a week and paying the bills that are coming due. Pay them at least 7 days in advance. These’ll put a measure on your money habits that keep you poor.
3. Inappropriate use of credit cards.
Using credit cards to buy 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 an uncertain position, lower your credit score, and keep you in debt for a long time.
It’s best you resolve to limit credit card use to emergencies or to accumulate rewards if you’re paying off your balance in full each month.
4. Failing to save money from each paycheck.
If you’re failing to make ends meet, saving money often seems insurmountable. But this is the time it’s most critical. Start by saving 1% of your take-home pay and build from there. If you never save any money, how do you expect your situation to change?
5. Making impulse purchases.
How many times have you made a big purchase and then run out of money at the end of the month? Impulse purchases are seldom satisfying after the initial glow has dwindled. In fact, you’re probably aggrieved of the purchase after the financial pain comes home to rest.
You should take a few days to think about the purchase before making a final decision. You’ll often find the urge has fallen away.
6. 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.
7. Failing to contribute to your retirement
After forty years of toiling to make ends meet, wouldn’t it be nice to retire comfortably? Many seniors find themselves in challenging financial circumstances because they failed to contribute adequately to their retirement. It’s never too late to start.
Terminating negative habits is the most effective way to start your journey to financial abundance. Choose one habit and make an effort each day to substruct it from your life. The most powerful action you can take with regard to your finances is to eliminate your three most debilitating financial habits. Simply Follow the Methods introduced in the Training System to Multiply Your Money!
