Can you get rid of some of the bad financial habits?
In this article, we are identifying some of the bad habits, and advising you get rid of them.
1. Do you still get transfer offers and accept them based on the so called “teaser” rate? Do you accept them or keep them for later acceptance? If that is the habit, it is bad habit, and you should discard this habit.
2. It is worth your money and time to find out occasionally your credit report. Credit report is a secular data collection and they just compile your reports. So once in while checking is not a bad idea. It is worth the effort, and it is a productive effort. If you find any mistake, just challenge and try to rectify and your FICO score would be improved.
3. Again, if you are facing hardship, it is a good idea to contact your creditors and let them know about it and ask for their help in resolving it. Please do not put your matters under the carpet.
4) Can you write something what you can spend? What is wrong with writing on journal? Make an expense sheet if you have laptop and like to use computer. Write your budget and stick to it. After all, it is your money.
5) How many credit cards you need? There has to be a limit. By far one is the best number. Pay all at one time. Don’t spend more what you can afford.
6) Are you saving for the emergency? There must be an emergency fund. Are you saving for the rainy days? Open an account and don’t get any debit card from this account. Only deposit and no withdrawal. Most experts tell you to have at least 3-6 months of your budgeted expenses saved in a savings account. This money can help get you through a medical situation or a job loss.
7) Paying Bills in No Particular Order – If you have problems paying bills, prioritize your bill and pay them in that order. Ask for the remainder that you would pay them later.
8) Nothing wrong in paying cash once in a while. After all cash is a good thing and meant to be exchanged.
9) Try to negotiate your late fee with your lenders. If you don’t get it waived, they would eat it, and that is good money for them.
10. Avoid making minimum payment only. Of course, it is a bad habit, and there is no end to it. Banks would tempt you doing that and they make more this way.