Dropping bad money habits makes it easier to power up your financial life. Following are 10 bad habits, and tips for ending them.
1. Carrying a credit card balance
High interest rates on credit cards make plastic one of the most expensive ways to borrow. Build a better habit: One approach to erasing the card balance is to devote every spare penny to getting rid of it. If you have other pressing debts, you’ll need to make a plan for dealing with all of them. Keep the balance from building again by making it a new habit to pay off the entire bill every month—no exceptions ever.
2. Failing to fund a retirement plan
How much should you save? “Ten percent is the minimum [monthly contribution] for anyone in any situation,” Arlington, Virginia, financial planner Claire Emory tells Women’s Day. Build a better habit: Imagine yourself at age 70 or 80. Picture concrete details—how you’ll look, your surroundings, how you’re spending time, and who’s with you. The more real your future self is to you, the more likely you’ll care for her or him today.
3. Not shopping for monthly services
Hopefully, you comparison shopped when signing up for insurance policies, and phone, Internet, and cable service. But you may be missing savings if you’re not checking prices again once a year. Build a better habit: Be willing to put some energy into improving your financial life. Once a year, spend 30 to 60 minutes price shopping for monthly services.
4. Paying for cable and landline
Cable prices are going nowhere but up. Free and cheaper alternatives make experimenting worthwhile. But will you get out of your rut and try something new? Build a better habit: Before trying a change, just observe yourself and your habits. Record your viewing habits for a week or two to see how and … (Read the full article on The Village Financial Resource Center website.)
–Reprinted with permission from partner site Moneytalksnews.com