Many of us make a living and earn a sufficient amount to fulfill our needs. Sometimes it is easy to assume that you are doing well but you might not even realize that you are making your money over work for you above its capacity. Here are a few habits that can prevent you from becoming rich.
1. Squeezing out entire money – During your everyday life, there might be a sudden plumbing expense in the house or your car radiator might go off. In such a situation if you do not have money to pay for emergencies then you are very fragile financially. You can start saving small every month and very soon you will find a good amount saved to have money for emergency purpose.
2. When you are making minimum payments on credit cards – When you are only paying the minimum amount to be paid for the credit card, you are likely to suffer in future. The trick is to pay off everything that you have taken from the bank through credit cards. Make a plan to wipe out the debt like giving up on a few luxuries.
3. When you do not have any idea where your money goes every month – Just using your debit card for paying bills does not help. You need to keep a track on your transactions as well. You might end up finishing your balance completely. This is when you need to make a budget so you can have a watch on your expenses.
4. When you do not have a plan to pay off your debt – Predicting and having no plan is not good for the health of your debt. You need to chart out a plan increase your income so that you can pay off the debts before time. Also track your expenses which will help to save a lot of money that goes in to unnecessary luxuries.
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