5 Bad Financial Habits That Keep You Poor
These are five bad financial habits that keep you poor. The rich manage their money very differently from the poor. You can start to manage your money better.
You can have good and bad financial habits regarding your finances. Your habits with your money help to keep you poor. The rich and the poor have very different financial habits when managing money. These are five bad financial habits that help to keep you poor.
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You Pay Yourself Last
The first bad money habit is always paying yourself last. When you first receive your paycheck, you direct your income toward immediately paying your rent, phone bills, and any subscriptions you have. You then direct some of your money toward social plans and expenses. Finally, you save a certain percentage with whatever amount you have left at the end of each month. You pay yourself last using this strategy. There may be little money left once you cover your expenses. This is a problem with the popular 50/30/20 budget that most people follow. You pay yourself last if there is any money left.
Instead, you should be paying yourself first. The rich make a point to pay themselves a certain amount first once money comes their way. You could instead put $100 immediately into your savings account once you receive your paycheck, then you cover your expenses. This way, you ensure that money goes into your account and can continue to grow. You are the ultimate bill that needs to be paid. You want to slowly watch your net worth grow so that you can work to stop living paycheck to paycheck.
This strategy will help to put your mind at ease. You won’t be worried if you have any money left at the end of the month. You can then restructure your spending and financial expenses to ensure you can always pay yourself first. Otherwise, you are paying other people first before you finally pay yourself.
One person’s asset is another person’s liability.
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