Do you find your money disappearing and then wonder what happened? It takes time and discipline to become money savvy and make wise financial choices. You may be sabotaging your own financial well-being with these three bad habits!
#1 Paying the minimum balance on credit cards
If you think you’re saving money by only paying the minimum on credit cards, you’re dead wrong! Interest keeps piling up on the principal balance, and the debt will take much longer to pay. Even just paying a small amount over the minimum payment each month will help you pay off credit card debt faster. Minimum credit card payments may also lower your credit score.
#2 Buying on impulse
That irresistible new outfit along with all the matching accessories is hard to resist even if you already have an incredible wardrobe. You can just imagine how good you’ll look! However, impulse buying is a bad idea. It’s okay to give in to spending urges occasionally, but if you make impulse buying a habit, your wallet will take a hit. Make a rule for yourself that you’ll wait before making the purchase for a few days. This gives you time to consider if you really need or can afford the item.
#3 Neglecting home maintenance
Neglecting home maintenance can cost you money. This is an area that is frequently overlooked in personal finance budgets. If you have dead or diseased trees with damaged branches, a wind event could result in a costly home insurance claim. Faulty heating and electrical systems could create a fire hazard in your home. Any heating and air system more than 10 years old should be inspected, cleaned and possibly replaced. Regular home maintenance may cost more upfront but will save you money on costly repairs.
It’s hard work, but you can break these bad financial habits and replace them with good ones!
