By Chinkee Tan
Have you ever wondered what are the habits and best practices of financially successful people?
Financially successful people don’t just get rich by accident. While some have been blessed enough to be born rich, they stay rich because they have money-related practices that keep them stay that way.
If you happen to have financially successful friends, try asking or observing their habits when it comes to saving and spending their money.
In reality, no matter how much money you have, when you don’t use it wisely, it will disappear. This is where you can learn from financially successful people. They habitually monitor their budget and bank accounts and hardly ever throw away money on goods and services that don’t give much payback.
Here are things rich and successful people do not waste their money on:
AVOID CREDIT, PAY IN CASH
As much as possible, they avoid paying for something with interest. They often pay things they want in cash. Aside from not worrying about the monthly payment, you also get to the best bargain.
AVOID LATE FEES, PAY ON TIME
Financially successful people never had to struggle with late fees. And why is that? Because they keep a close eye on their budget and due dates! Paying late fees is real money taken away from your account balance. It’s like paying for a bad behavior!
Pay attention to your due dates to avoid wasting money on late fees. Keep a record of schedules and pay on time. One factor that contributes to your financial success is discipline.
BANK FEES AND CREDIT CARD INTERESTS
If you find yourself paying interests to your bank and credit cards, it means that you are not being a good steward of your finances. Paying bank fees and credit card fees can be avoided and you will rarely see rich and financially successful people do this because they’re too money-wise to just throw hard-earned money down the drain.
A credit card is also a trick disguising in a form of plastic. Sure you feel a little bit of guilt after using it but the convenience it brings just lets you anyway! Rich and financially successful people seldom accumulate high credit card interests because they know from the start that it’s a total waste of money.
AVOID BETTING THEIR FUTURE ON CHANCE, RAFFLE, AND LOTTERY TICKETS
If you really want to make it big with money, do not even think of playing the lottery. This is the easiest way to squander your money. Your chances of winning the lottery are way too little and this is too much of a risk both for you and your money.
If you want to earn money, think of ways that help generate income rather than looking for an easy way out like lining up at a lottery counter hoping the odds will be in your favor.
AVOID IMPULSE PURCHASES, THEY MAKE PLANNED PURCHASES
Have you ever gone into a shop with no intentions of buying but ended up with a bag full of discounted stuff because you felt like you’re missing out on the sale opportunity? Or perhaps it was a trip to the grocery store where you end up buying things that are not on your grocery list just because they were offered at a buy one take one promo?
Whatever the case, this behavior is not a practice among the rich and successful. Rich and financially successful people plan well, especially when it comes to their finances and budgets. They realize that impulse buying can mess up their financial strategies so they sure know how to get away from it.
THEY AREN’T ATTRACTED TO HIGH-END AND SIGNATURE BRANDS, THEY BUY THINGS THAT ARE MORE PRACTICAL
Sure high-end and signature brands spell R-I-C-H with just one look but you should know that rich and successful people often buy because of quality and not the fame the brands bring. While they do have some expensive splurging occasionally just because they can afford, they do not indulge in high-end shopping all the time.
Now ask yourself, is that R5,000 jeans worth all the money or will the P1,000 jeans on sale do the trick? Be consistent with shopping wisely and keeping a close eye on your budget and financial goals.
THINK. REFLECT. APPLY.
Have you ever wasted your money on fees that can be avoided? What lesson did you learn from that experience? What’s the best practice of the financially successful people that you find very difficult to emulate and how?
“I’d like to live as a poor man with lots of money” – Pablo Picasso
