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Live richer by dropping these 5 bad money habits
May 29, 2016
We’re already half way through the year, you’ve probably written down your goals (Lose weight, get out of debt, save more, buy less, travel, fall in love etc) which is a great start. Now that you’ve made your goal list it’s time to take some action, because as you know without action goals are useless.
Today I’m going to list 6 bad money habits that you need to drop in order to start living the rich life that you deserve!
1.Buying what you don’t need
I know we all like to dress and look nice, but at what price are you willing to pay? How many hair products, dresses, purses, and shoes do you really need? You swipe your credit card to order a dress online, you pay extra for shipping because the party is this weekend and you waited until Wednesday to finally decide which one you wanted. You’re not even sure this dress will fit, so you go to Macy’s swipe your credit card again just to have a back up dress. “If it doesn’t fit, I’ll just return” is probably what you tell yourself, but you end up keeping both dresses. Your credit card statement is due in a few days and you only have enough to pay the minimum balance because you wanted to feel special and pay for VIP service at the club.
Your six friends that were supposed to show up, three of them bailed last minute and now you’re left scrambling trying to figure out a way to pay their portion of the bill. Your bank account is suffering, your credit card is being charged more interest with each swipe, and all you’ve got to show for your “good time” is a hang over and 78 likes on your instagram picture.
This year will be different. You will redefine what luxury looks like. Luxury is having money in your bank account. Luxury is being able to pass on wealth to the next generation. Luxury is being able to not worry about money. Luxury is being able to sleep at night because all your bills are paid on time. Luxury is knowing you can afford those designer brands, but being happier with building your net worth and reaching your goals.
Not creating a budget
Creating a budget is a lot like being in an elevator when the doors are closing and you see someone running to try to make it, you could press the open button, but you don’t want to. I think the real reason people don’t create budgets is just to feel like they have money to splurge. When you create a budget you know exactly where your money is going. If you don’t create a budget how will you ever reach your new money goals?
You should strive to pay yourself first at least 10% every time you get paid. This 10% can be split between savings, and retirement. After you’ve paid all your bills it’s easy to forget about saving money for your future self.
Thinking lack or not having enough
When you speak of poverty or lack of education, or sickness and disease, you’re only attracting more of these things into your life. Therefore, you must be careful what you’re feeding your brain. You have to think thoughts of wealth and prosperity. Saying phrases such as “My debts are dissolving, prosperity is flowing my way, I have more than enough. Etc.”
We have the power to change our own life, but it first starts with our thoughts. Napoleon Hill states, “Your own limitations are those you set up in your own mind or the limitations you allow other people to set up for you.” I can’t emphasize enough how true this is! If you don’t change your thought process, you will forever be in the same place that you are in.
Paying the min. balance on credit cards.
If you really want to pay off your credit card debt, you’re going to have to pay more than the minimum balance. The faster you pay off your credit cards the less they will charge you in the long run. Some people recommend paying off the credit card with the highest interest first while others recommend paying off the credit card or store card that has the lowest balance first. This way you can knock out one bill at a time and can create small wins.
Once the smallest debt is paid off then you move on to the next card. Which ever plan is best for you. Personally, I like to pay off the card that has the lowest balance first because it makes me feel good to be done with one.
Some call it an emergency account, feel free to call this account whatever you want as long as you’re putting money aside just in case you need to use it. A few years ago when I wasn’t working this just in case account came in handy. In fact I don’t know what I would have done if I wasn’t saving for a rainy day because it was pouring rain and this account became my umbrella. Some people recommend you have three to six months of your monthly bills saved up inside this account.
I’m excited for 2016 it’s all about taking baby steps to reach your goals. I believe we can do it. Hope this post was helpful, if it was feel free to comment below or share with your friends. Are there any other bad money habits that you want to kick to the curb in 2016?
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