10 Habits Of Financially Successful People
Do you want to get rich? Then adopt the habits of financially successful people to help scale you through. People have made it by launching social media startups and widely inspiring successful crowdfunding campaigns or writing wizard-theme bestselling books. But most successful people have far more boring backstories of accumulating wealth through wise spending and smart saving strategies. Aside the occasional indulgence, most financially successful people keep a close eye on their budgets and bank balances. They rarely waste money on goods and services that don’t offer much in return. Read also 4 Amazing Financial Stress Relieving Tips To Improve Your Financial Independence
Habits Of Financially Successful People To Adopt
Meanwhile, it’s worth adopting ways to spend money wisely and smart saving if you want to make it like the financially successful people in life. The habits of financially successful people to amass wealth isn’t anything beyond achievement and anyone can do it once you make up your mind. Adopting or inculcating these habits of financially successful people in to your financial cycle of life can scale you up the ladder of success. You can be working hard, saving everyday but without these habits, it may take longer than ever to succeed. Read also 90 Greatest Money Making Skills That Will Take Less Than 52 Weeks To Acquire
Never Do These If You Want To Be Rich
1. Lottery Tickets
If you really want to make it rich, don’t play the lottery, one of the habits of financially successful people. This is a sure way to burn money fast and rich habits simply don’t include a weekly stop at the convenience lotto line. Your chance of winning lottery is about one in 292 million, which means those odds are not in your favor. Take a look at the math, a Powerball ticket costs $2 and it might not seem like much, but if you play twice a week for a year, and buy two tickets each time; you will have flushed more than $400 down the drain. Don’t waste your hard-earned money on chance when you can put it toward wealth-building goals, such as retirement or college tuition. Invest the same $416 each year, getting just a 5% return, and over 30 years you will have $28,055 worth of investment returns. Read also The Best Ways To Build Generational Wealth With Life Insurance
2. Paying Negligent Fees
Another one of the habits of financially successful people is fees. Like many businesses, banks often charge fees for their services, whether they are monthly maintenance fees for certain accounts, ATM fees or other sundry charges. This is why it’s so important to pick your financial institution carefully because paying fees when you don’t have to is a waste of money. By avoiding monthly maintenance fees, you are getting around the waste and frustration of paying to use your own money. Read also 11 Legit Ways To Make Quick Money Within 24 Hours
3. Interest on Credit Cards
A credit card can be similar to eating from a tub of ice cream; you might feel a little guilty for overindulging afterward, but it’s just too convenient. Sure, it’s easy to swipe the plastic but you won’t catch wealthy people accruing high credit card interest. They know it’s a waste of money. To avoid accruing high interest, only buy what you know you can pay for when your statement comes. If you are carrying a balance, transfer or consolidate your debt to a credit card with a zero percent introductory APR. Just be sure to pay off your balance before the promotional period ends. This is yet one of the habits of financially successful people.
4. Inflated Interest Rates
highest mark of inflated interest rates creates credit risk scoring system, however, tracking statistics, that’s a money-saving milestone since a clean credit record gives conscientious consumers more than just bragging rights. Crediting scores play a leading role in determining your interest rate for auto loans, mortgages and more. Just by having a higher credit score, you can save hundreds or thousands of dollars in interest over the life of a loan. People with substandard scores, however, might not be able to land loans at all. Financially successful people keep their credit reports pristine by paying bills on time, keeping debt levels low and fixing mistakes on their credit reports. And if you already have a decent credit history but carry a balance on some credit card accounts, consider calling card issuers to request a higher credit limit. A higher limit will reduce your credit utilization rate, the percentage of available credit you are using and could boost your score, you can ask for a rate reduction. The lower your interest rate, the faster you can blast balances towards wealthiness. Read also 4 Easy Ways To Avoid Wasting Money In Retirement – A Sure Way Solution To Running Out Of Money In Retirement
5. Late Fees And Payments
One of the habits of financially successful people is that, they don’t get saddled with late fees that can chip away at their bank balances and credit scores. Paying late can even cost more to people who pay off their balances every month. Just about every other monthly bill carries it’s own procrastination penalty as well. Heavy spenders avoid late fees by automating everything. If you have ever asked yourself, “How can I get rich?” before, then automating your payments so you don’t get hit with high fees and penalty rates can help you hold on to more of your money.
6. Extended Warranties
Somewhere along the line, if you bought a new 4K TV, you were probably asked, “Would you like to purchase an extended warranty?” a financially successful person has a simple answer to that question, “no.” Even though people want the most value from purchased products, but generally, extended warranties don’t give you more bang for your money. According to reports, retailers keep 50% or more of what they charge for extended warranties. Extended warranties just aren’t one of the things rich people buy. So, what do rich people do? They research and you should follow their lead. For instance, check your manufacturer’s warranty before saying yes to an extended warranty. You might have more coverage than you initially thought. Also, compare the cost of potential repairs with the extended warranty. You would typically be better off putting aside the money you would spend on a warranty to cover future repairs yourself. The next time a salesperson tries to sell you on that extended warranty, shut the conversation down fast. It’s not the habits of financially successful people to purchase extended warranty. Read also 15 Most Important Assets That Will Increase Your Net Worth Significantly
7. Impulse Buys
In one circumstance, you have gone into a store intending to purchase one thing but come out with a cart full of stuff! Maybe it was buy one, get one free at the grocery store, so you snagged a few extra items or perhaps it was a flash sale on your favorite clothing and you bought designer shoes in addition. Whatever the case might be, this isn’t a shopping practice for the wealthy. Financially Successful people are planners and impulse purchases tend not to match with this habit.
8. Low-Interest Savings Accounts
If you like stashing cash in savings because it’s secure and you can pull out money on a whim and see more than pennies on your interest, then change your strategy to truly emulate a financial mogul. Regular savings accounts don’t earn a lot of interest. The national savings account rate is a meager, a stark contrast from what you can expect from a high-yield savings account. You can find high-yield savings accounts by looking beyond traditional brick-and-mortar banks. Online banks, for example, frequently offer the highest return rates because they have no or lower overhead costs. If you are looking to boost your wealth by making wise decisions with money, explore your online savings account options. Also, automating works as a smart savings strategy by diverting dollars directly to your high-interest savings account before you even see it. That way, you won’t have the opportunity to second-guess or sabotage your savings plan. Read also 10 Best Ways To Build Wealth Quickly With Or Without Money
9. High-End Brands
You might see a lot of designer labels on the red carpet, but many rich people don’t choose designer labels for every purchase. Though they have the funds to splurge at luxury retailers, they understand that doesn’t always mean they should. What do rich people buy then? The answer can depend on the day. If you want to emulate the habits of financially successful people, stop and ask yourself if that $200 pair of designer jeans is really worth the investment or will $30 discount store denim do the trick? Always shop wisely and keep your budget and financial goals in mind while in the shop. Read also The Definitive Guide To Choosing The Best High Interest Bearing Savings Account
10. Extravagant Inheritances
Financially successful families are often in a position to give the younger generation a helping hand when it comes to expenses like tuition and housing. According to a survey, 18% of affluent parents, those in households with investable assets of $500,000 or more — planned to completely cover their children’s rent, while 14% planned to pay for their kids’ homes. But, for the most part, supporting their kids for life is just not one of the things rich people do. Many millionaires and billionaires have publicly announced plans to leave a big bundle to charitable causes rather than keeping it all in the family. For instance, Bill Gates said he plans to donate the bulk of his billions to the Bill and Melinda Gates Foundation rather than leaving it to his three children. Also, Facebook founder, Mark Zuckerberg and his wife Priscilla Chan, who have two daughters, have pledged to donate 99% of their Facebook shares to charitable causes during their lifetimes. This is more like providing your kids with things necessary for them to start their own life rather than giving them hue inheritance which can be spent opulently. Read also 8 Simple Ways To Grow Your Bank Account In A Month
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