Attaining financial success is two-fold. It involves developing good money habits and dismissing the old, counterproductive ones that keep you from building wealth. Below are some bad habits that do not serve you and how to kick them off your life today.
1. Paying for cable TV or a landline
There is plenty of cheaper alternatives to cable TV. Why keep paying its ridiculous prices? Consider cutting the cord, especially if you do not use it that much. The same is true for a landline. You can perfectly exist with your mobile phone only.
2. Not using coupons and deal websites
If you can buy items for half the price, why would you pay full price? You are always spending too much when you do not use coupons and take advantage of the many discounts on offer. If you have not used coupons before, go slowly and just use one to make a purchase. You will quickly get hooked once you realize how good it feels to get instant savings!
3. Carrying a credit card balance
Think about all the money you pay on interest. Wouldn’t it be nicer to enjoy that money in a different way? Maybe it can contribute to your savings or add a little extra to your next vacation. The larger your credit card debt, the sooner you must devote every penny to repaying it. Carrying a balance will keep you from becoming financially independent.
4. Not saving for retirement
You may think some bills are more pressing now than your retirement fund, but you will regret this big time as you retire without savings. Start paying close attention to your retirement fund and if possible, increase your savings. This is one investment that you owe yourself so start today!
5. Buying expensive coffee
$4 may not look like a lot but a latte each workday is $20 a week or $1,040 a year. If you leave a tip every time, you may be spending $1,300 annually just on your morning coffee. Surely, you can find better use for $1,000?