A recent post on the Develop Good Habits blog: 11 Good Financial Habits – Tips for Monetary Success and Stability. Here are some outstanding tips on how to save money and keep out of debt–
“It can take years of experience to develop good financial habits, but the benefits of being responsible with your spending are well worth any effort it takes to develop good practices. When you have your finances under control, you can keep you and your family out of debt, you can maintain a strong credit score, and you can get the financing you need for large purchases such as a home or a car.
When people run into financial problems, it is usually the result of several bad decisions that pile up to create ongoing issues. To protect your financial future, you need to be able to identify bad financial habits and understand the ways in which you can avoid making those types of mistakes on a regular basis. It is okay to make financial mistakes. What is not acceptable is allowing those mistakes to turn into ongoing bad habits.
- Overspending With Credit
It is not a bad thing to have credit card accounts that you can use when you have emergency situations. But when you use those credit card accounts to develop spending habits that overwhelm your monthly income, then you are headed for trouble. If you notice that your monthly credit card payments are starting to become more than your monthly income, then you need to break this bad financial habit quickly.
The solution to this type of problem is to use credit in a responsible manner. Never purchase something on a credit card that will take longer than three months to pay off. If you are only making minimum payments on your credit cards each month, then you are heading down the road towards financial disaster. You need to understand your own finances and prevent yourself from making credit purchases that will create monthly payments that go on for years.
Another good approach is to create a savings account that you use specifically to make purchases that would normally make with a credit card. For example, if it is finally time to replace the television, then it is much better to save up to buy a new television with cash than to utilize credit….”
Each habit is explained in good detail. Following these tips could save you thousands of dollars each year. Read the rest here.
Daniel R. Murphy
Educating people for building wealth, adapting to a changing future and personal development.