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Having money caved in your pockets is one of joyful moments of your life, because it’s when you feel secure and feel that you can curb anything that you desire in life.
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But, look, money is not the bottleneck of everything even though it’s a standard necessity in one’s life.
When some people get money within their life, they tend to have the following worst habits with their money
1.You have to have it now—so you pay for it later.
Many of us whip out credit cards any time we want a latte, a tank of gas, or even a concert ticket—small items that end up costing us big when we don’t pay off our credit card bills in full. “The ‘gotta have it now, pay for it later’ mentality is beyond tempting, and it can lead you into serious trouble before you know it,” warns Kaplan. “The exorbitant interest rates on credit cards can innocuously dig you into a debt hole that’s almost impossible to escape.”
2. You haven’t been to the gym this year.
Your new year’s resolution was to get Kayla Itsine arms. But it’s August, and you haven’t walked into the gym since you signed up for its costly monthly membership program.
“That monthly charge is sucking your wallet, but is it sucking inches off your waistline?” asks Liebowitz. If you’re not, it could be time to cancel it—and stash the money you’d save.
Liebowitz suggests making a commitment to hit the gym with a friend who will help you put that membership to good use. Or, ditch the membership altogether, and opt for a more cost-effective workout option:
“You could meet that same exercise buddy for a walk around the neighborhood, or to play tennis or basketball, which may not require a hefty monthly expense,” she points out.
“Just be honest with yourself about the number of gym visits you’re really making to determine if a monthly fee is the most economical workout option.”
3. You don’t think you can (or should) invest.
“Especially when you’re young and strapped for cash, it’s easy to shy away from investing,” says Kaplan. Plus, let’s be honest: It seems like we can’t turn on the nightly news without hearing some doomsday prediction about the next stock market crash. “You might be led to believe that any excess cash is safer sitting in your bank account than the stock market,” she says. “But the truth is inflation is eating away the power of every dollar you leave sitting in your savings account annually.”
If the stock market scares you, look at the long-term value and risks involved with investing your money—not what, say, Apple’s stock did in the last 24 hours. “The stock market might seem scary and too risky to put money into, but if you look at its performance over 10 or 20 years, you’ll start to realize the immense value of having your wealth grow over time,” says Kaplan. Then, prioritize investing the same way you prioritize necessary spending. “An easy way to do this is by setting up a Pay Yourself First Fund,” says Kaplan. “Aim to set aside 20 percent of your budget toward investing in your future self—whether that’s paying down credit card debts or investing for retirement. Treat this as a non-negotiable luxury, and realize it’s just as, if not more, important than paying your bills.”
4. You haven’t cooked this month.
Whiling away hours at a restaurant may be your favorite past time, but eating out often can seriously eat into your budget.
Consider that the average cost of a home-cooked meal is just $4 per person—less than even your favorite and relatively cheap Chipotle burrito.
But it’s not just fancy meals and take out that bomb your budget—even happy hour drinks at half-price can add up.
“If you partake in alcoholic beverages, have a drink at home before you pay for pricey cocktails at a restaurant,” Liebowitz suggests.
Or better yet, build up your cash reserves by cooking at home, even just once a week to start.
5. You spend money when you’re emotional.
Kaplan says it’s far too easy to tie your emotions to your spending habits. What does that mean, exactly? “You just had a bad day, so you go buy a pair of dress shoes to feel better,” she describes. “Or, you just got a raise, so you celebrate by going over budget. There are plenty of sneaky ways our moods cause us to overspend.
And this can evaporate any steps you’ve taken towards financial health in a snap.”
To counteract your impulse to spend when you’re stressed or celebrating, consider building a 20-30-50 budget plan. In this plan, 50 percent of your money should go toward necessities.
Then, “after devoting money to future endeavors, 30 percent of your budget can then go toward reasonable splurging,” says Kaplan. “As long as you can account for the rest, you can treat yourself with this portion. If you find yourself falling short on the plan, this is the section where you should trim some fat.”
6. You’ve got lazy gas habits.
When it comes to our gas tanks, we often play defense, scrambling to find the nearest station—no matter its advertised price per gallon—when our gauges teeter dangerously toward empty.
Of course, even if you’re refilling responsibly when you’ve got half a tank to go, you may visit the corner store or the station on your route to work.
Either way, chances are, you’re not searching for the best deal. “And you could very well be saving more on the price per gallon by going to a different gas station,” says Liebowitz.
“There are apps like GasBuddy that can tell you where the least expensive gas stations are near you, which can save you money to allocate elsewhere or better yet, to save and invest.”
Then, plan your errands to reduce any unnecessary driving that will eat up your gas.
7. You’re focused on today, not tomorrow.
No matter the habit, it’s sometimes hard to see how it will impact us down the line, “so it’s not surprising that retirement is swept under the rug for the majority of Americans,” says Kaplan.
“But what most Americans don’t realize is that retirement gets exponentially harder to plan for the more you put it off. By starting now, you’ll have decades to see your small investments grow into a gigantic nest egg.”
An easy way to start saving for your future is to invest in your company’s 401k plan. “This can be automated so a portion of your paycheck goes straight into the investment—a foolproof way to plan for retirement without even thinking about it,” says Kaplan.
“As an added bonus, if your employer offers a match, you’re essentially getting free money to grow your nest egg.” Of course, if your company doesn’t offer a match or even a retirement plan, you have other options, like a Roth IRA, where your contributions will grow—and can be withdrawn at retirement age—tax-free.
Source: glamour
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