Are Your Habits TOXIC to Your Future?
By Pierre Mouchette | Real Property Experts LLC
Always have a plan (goal). Set the rules and UPGRADE them as you progress through life.
Toxic Money Habits
Spending Without a Plan - spending all your income can hurt your ability to retire early or on time. Make sure you create a budget. If you do not tell your money where it’s going and what it’s going to do for you, it will find its own thing to do, and somehow it never finds its way into your retirement account.
Always Remember - advertisers rely on emotional spending, and emotional expenditure is always TOXIC both today and tomorrow. Only purchase your wish list, a list that you made at a time free from distractions, anxiety, or other emotions.
Paying Yourself Last - a toxic money habit is not paying yourself first. Rather than paying yourself first to ensure you have money to save and invest for your future, you may choose to pay yourself last. You may want to repay all your bills, buy any necessities, and have a little fun first. The problem with that is that you may find yourself out of money by the time you are ready to save. When you pay yourself first, you ensure you are saving for your future, and you learn to live below your means.
Ostrich Syndrome - if you ignore your problems, they will NOT go away. Another toxic money habit is to ignore issues instead of dealing with them.
Not Knowing Opportunity Cost - every purchase can either be a potential investment, or the money saved can be a potential investment. Every penny you put into suitable investments can be worth dollars in the future.
Responsibility for Retirement
Avoid negative-loser situations and people. Develop friendships with people working on getting ahead in life and putting a premium on using their money wisely. You can spend a fortune just hanging out with people who have no concept of a responsible life or any vision for the future.
People who do not have an emergency fund are at the most significant risk of harming their financial future. When you do not have that reserve, and an emergency may happen, and you will be forced into debt every time. Mounting debt reduces your retirement savings and puts pressure on you financially. Financial pressure causes people to make more bad decisions and continues this toxic cycle of having no savings and turning to debt every time a problem arises.