Bad Money Habits and How To Break Out Of Them

Hi there friends, it's The Business Guy back again with another blog on money and financial principles.

Now I'm pretty sure you are no stranger to the principles of finance, so here's the question I'll ask you.

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Why aren't you a millionaire or billionaire or a wealthy person yet?

Well, I'm going to share a few tips that I believe will help you understand exactly what's been dragging you back when it comes to your financial goals.

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Pay Yourself

Robert Kiyosaki's book "Rich Dad Poor Dad" introduced me to this concept, which is one of the best books to read if you plan on getting financial freedom.

Robert distinguishes between two sorts of charge installment strategies.

The primary strategy is common to most people that end up getting broke, in which you pay yourself last.

So, as soon as your salary arrives, you pay your rent, phone charge, memberships, finance your social plans, and after that, you save whatever is left, that is only if there's any left.

However, the second strategy, which is practiced by most wealthy people, is to first pay themselves before taking care of other expenses.

They pay themselves first, which is precisely what you want to do. Take at least 10% and deposit it into your investment savings account the moment you get paid.

Consider it like paying a charge. This is often basic, and by doing so, you ensure that the money is moderated. This helps you save faithfully regardless of the situation or the income.

Many individuals are surely considering, "I can't do this."

I live paycheck to paycheck, but the amazing thing is that after you put that 10% down as savings, your mind will think of strategies to structure your consumptions and your funds to endure for the month.

You will be sparing throughout the month without even realizing it.

People do not get how much cash they're spending on bills, buying new things, going on vacation, and then saving whatever little that's left, but the truth is that to be rich, you have to do the opposite. Save first before thinking about other things.

The thought is to pay yourself first, instead of improving the lives of other people by acquiring their goods before paying yourself.

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Nowadays, it seems that obligation is the standard. Individuals are utilizing obligation to obtain even the most modest of things, such as presents and clothing.

Here's another rule you shouldn't forget: until you can afford to pay for something through and through in cash, you should never buy it using any sort of advance.

Keep in mind that credit card companies want you to keep buying things on credit since that is how they create money.

The normal credit card interest rate is 22%, which cancels out all of the incentives and benefits that credit card companies offer if you do not pay them off on time.

There are a few special cases or exemptions to this rule, though, such as emergency healthcare and property, but you ought to still manage your obligation and pay off your high-interest debt as rapidly as possible.

Now the third reason may be a lack of huge savings stocked somewhere. This joins up with point one, which is around paying yourself first. And, fundamentally, it's sparing enough to have a huge savings behind you.

Life is unpredictable, and you may not know when you might get a great investment opportunity that is not going to last long enough for you to get the capital, so you need to always make sure you have a lot of money saved up for that time.

That's all for my tips, friends. I hope this inspires you as it inspired me.