Have you ever wondered why you\u2019re not rich yet?\u00a0 The problem is you\u2019re probably getting in your own way.\u00a0 Whether it\u2019s a daily trip to your favorite coffee shop or frequent visits to the ATM, we all have habits that interfere with our financial goals.\u00a0 Here are 7 bad money habits you need to kick to the curb so you can start saving more money.<\/p>\n
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It\u2019s easy for your finances to get out of control when you’re clueless about what you’re spending.\u00a0 Therefore, you need a budget.\u00a0 Grab your pen and paper and we\u2019ll teach you how to create one in 4 easy steps.<\/p>\n
Step 1:<\/strong> \u00a0Calculate your monthly income.\u00a0 This includes your wages, child support and any other payments you receive.<\/p>\n Step 2:<\/strong>\u00a0 Figure out your monthly expenses.\u00a0 This includes any bills you’ve received in the mail as well as any receipts you\u2019ve accumulated throughout the month.\u00a0 Total them up and separate them into two piles:\u00a0 variable and fixed expenses.\u00a0 Variable expenses are bills whose amounts change monthly (i.e. clothing, groceries, entertainment, etc.).\u00a0 Whereas Step 3:<\/strong>\u00a0 Subtract your expenses from your income.\u00a0 If you have money leftover after paying the bills, congratulations, you\u2019re on the right track.\u00a0 However, if your expenses are leaving you in a hole, you need to make some changes.<\/p>\n Step 4:<\/strong>\u00a0 Cut unnecessary expenses.\u00a0 Go through your list of expenses and look for items you can do without.\u00a0 Typically, variable expenses are easier to cut since they aren’t as important.\u00a0 Keep making cuts until your income and expenses balance each other out. Once you have a budget in place, try it out for a month and make adjustments as needed.<\/p>\n <\/p>\n No matter who you are, everyone needs to save for a rainy day.\u00a0 Most experts recommend setting aside 3-6 months\u2019 worth of living expenses in case of an emergency.\u00a0 Saving a large sum of cash can seem like a daunting task but it doesn\u2019t have to be.\u00a0 Calculate how much money you\u2019ll need and create a monthly savings goal.\u00a0 Once you have a target in mind, setup automatic monthly transfers with your bank.\u00a0 By treating it like a bill, you\u2019re more likely to stick with the plan.<\/p>\n <\/p>\n Want some free money?\u00a0 You\u2019d be hard pressed to find someone who flat out rejects the offer but you might be doing so indirectly.\u00a0 Studies show that one in five workers don\u2019t contribute enough to their 401K to receive their full company match.\u00a0 That\u2019s free money you’re missing out on.\u00a0 Don\u2019t let another dime slip through your fingers, aim to save at least 10 percent of your salary for retirement.\u00a0 If that\u2019s too rich for your blood, at least contribute enough to receive your company match.\u00a0 Remember, every dollar you contribute lowers your taxable income so you\u2019ll walk away with a bigger refund at tax time.\u00a0 The fastest and easiest way to file is with ezTaxReturn.com<\/a>.<\/p>\n <\/p>\n When money is running low, some people tap into their retirement accounts for relief.\u00a0 Not only are you robbing yourself of a good financial future, the penalties you\u2019ll face aren\u2019t worth it.\u00a0 Typically, any money you withdraw before turning 59 \u00bd will be taxed and hit with a 10% penalty.\u00a0 Needless to say, you\u2019ll be much better off exploring other borrowing options.<\/p>\n <\/p>\n ValuePenguin reports that 41.2% of American households are carrying credit card debt.\u00a0 Failing to pay your balance on time and in full has more repercussions than just a few late fees.\u00a0 Your card\u2019s interest rate can skyrocket up to 29.99% if your payment is more than 30 days late.\u00a0 Do yourself a favor and only charge what you can afford to pay off at the end of the month.\u00a0 The next time something catches your eye, walk away and give yourself at least 24 hours to think about the purchase.\u00a0 By taking a step back, you may have a change of heart.<\/p>\n <\/p>\n When\u2019s the last time you checked your credit report?\u00a0 If it\u2019s been over a year, you need to get on it ASAP.\u00a0 Many people don\u2019t realize how bad their credit is until they’re rejected for a new loan.\u00a0 Save yourself the embarrassment and start checking your credit report on a regular basis.\u00a0 By law, you\u2019re entitled to a free copy from Experian<\/a>, TransUnion and Equifax<\/a> once a year.\u00a0 When reviewing your report, look for any mistakes or unfamiliar accounts that may be hurting your score.\u00a0 It\u2019s imperative that you keep your credit in tip top shape because that\u2019s how you\u2019ll get the best interest rates.\u00a0 Easy score boosting tricks include keeping your balances low, paying your bills on time and not opening multiple accounts too quickly.<\/p>\n <\/p>\n Americans paid a whopping $34B in overdraft fees last year.\u00a0 Stop giving away your money.\u00a0 Next time you\u2019re running short on cash, go to your bank\u2019s website and look up the nearest ATM.\u00a0 It might be inconvenient but considering ATM fees cost between $2-$3, the savings will add up.\u00a0 Alternatively, you can ask for cash back when you make a debit card purchase.\u00a0 Just make sure you actually have enough cash in your account to cover all of your bills since overdraft fees run around $30 per item.<\/p>\n <\/p>\n <\/p>\n Have you ever wondered why you\u2019re not rich yet?\u00a0 The problem is you\u2019re probably getting in your own way.\u00a0 Whether it\u2019s a daily trip to your favorite coffee shop or frequent visits to the ATM, we all have habits that interfere with our financial goals.\u00a0 Here are 7 bad money habits you need to kick […]<\/p>\n","protected":false},"author":3,"featured_media":10370,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"off","_et_pb_old_content":" Have you ever wondered why you\u2019re not rich yet?\u00a0 The problem is you\u2019re probably getting in your own way.\u00a0 Whether it\u2019s a daily trip to your favorite coffee shop or frequent visits to the ATM, we all have habits that interfere with our financial goals.\u00a0 Here are 7 habits you need to kick to the curb so you can start saving more money. Habit #1:\u00a0 Spending without a budget<\/strong> It\u2019s easy for your finances to get out of control when you're clueless about what you're spending.\u00a0 Therefore, you need a budget.\u00a0 Grab your pen and paper and we\u2019ll teach you how to create one in 4 easy steps. Step 1:<\/strong> \u00a0Calculate your monthly income.\u00a0 This includes your wages, child support and any other payments you receive. Step 2:<\/strong>\u00a0 Figure out your monthly expenses.\u00a0 This includes any bills you've received in the mail as well as any receipts you\u2019ve accumulated throughout the month.\u00a0 Total them up and separate them into two piles:\u00a0 variable and fixed expenses.\u00a0 Variable expenses are bills who\u2019s amounts change monthly (i.e. clothing, groceries, entertainment, etc.).\u00a0 Whereas<\/del> fixed expenses are bills <\/del>whose amounts remain the same (i.e. rent, student loans, insurance, etc.).<\/p>\nHabit #2:\u00a0 Failing to save for a rainy day<\/strong><\/h2>\n
Habit #3:\u00a0 Not contributing enough to retirement <\/strong><\/h2>\n
Habit #4:\u00a0 Borrowing from your retirement accounts<\/strong><\/h2>\n
Habit #5:\u00a0 Charging more than you can afford<\/strong><\/h2>\n
Habit #6:\u00a0 Ignoring your credit report<\/strong><\/h2>\n
Habit #7:\u00a0 Racking up bank fees<\/strong><\/h2>\n
File your taxes fast and ez in 30 minutes or less.<\/h2>\n","protected":false},"excerpt":{"rendered":"
<\/del> fixed expenses are bills <\/del>whose amounts remain the same (i.e. rent, student loans, insurance, etc.). Step 3:<\/strong>\u00a0 Subtract your expenses from your income.\u00a0 If you have money leftover after paying the bills, congratulations, you\u2019re on the right track.\u00a0 However, if your expenses are leaving you in a hole, you need to make some changes. Step 4:<\/strong>\u00a0 Cut unnecessary expenses.\u00a0 Go through your list of expenses and look for items you can do without.\u00a0 Typically, variable expenses are easier to cut since they aren't as important.\u00a0 Keep making cuts until your income and expenses balance each other out. Once you have a budget in place, try it out for a month and make adjustments as needed. Habit #2:\u00a0 Failing to save for a rainy day<\/strong> No matter who you are, everyone needs to save for a rainy day.\u00a0 Most experts recommend setting aside 3-6 months\u2019 worth of living expenses in case of an emergency.\u00a0 Saving a large sum of cash can seem like a daunting task but it doesn\u2019t have to be.\u00a0 Calculate how much money you\u2019ll need and create a monthly savings goal.\u00a0 Once you have a target in mind, setup automatic monthly transfers with your bank.\u00a0 By treating it like a bill, you\u2019re more likely to stick with the plan. Habit #3:\u00a0 Not contributing enough to retirement <\/strong> Want some free money?\u00a0 You\u2019d be hard pressed to find someone who flat out rejects the offer but you might be doing so indirectly.\u00a0 According to a Financial Engines study, one in four workers don\u2019t contribute enough to their 401K to receive their full company match.\u00a0 That\u2019s about $1,336 per employee that goes unclaimed each year.\u00a0 Don\u2019t let another dime slip through your fingers, aim to save at least 10 percent of your salary for retirement.\u00a0 If that\u2019s too rich for your blood, at least contribute enough to receive your company match.\u00a0 Remember, every dollar you contribute lowers your taxable income so you\u2019ll walk away with a bigger refund at tax time.\u00a0 The fastest and easiest way to file is with ezTaxReturn.com<\/a>. Habit #4:\u00a0 Borrowing from your retirement accounts<\/strong> When money is running low, some people tap into their retirement accounts for relief.\u00a0 Not only are you robbing yourself of a good financial future, the penalties you\u2019ll face aren\u2019t worth it.\u00a0 Typically, any money you withdraw before turning 59 \u00bd will be taxed and hit with a 10% penalty.\u00a0 Needless to say, you\u2019ll be much better off exploring other borrowing options. Habit #5:\u00a0 Charging more than you can afford<\/strong> ValuePenguin<\/a> reports that nearly 38% of American households are carrying credit card debt.\u00a0 Failing to pay your balance on time and in full has more repercussions than just a few late fees.\u00a0 Your card\u2019s interest rate can skyrocket.\u00a0 While the average APR is 15.18%, that number can shoot up to 29.99% if your payment is more than 30 days late.\u00a0 Do yourself a favor and only charge what you can afford to pay off at the end of the month.\u00a0 The next time something catches your eye, walk away and give yourself at least 24 hours to think about the purchase.\u00a0 By taking a step back, you may have a change of heart. Habit #6:\u00a0 Ignoring your credit report<\/strong> When\u2019s the last time you checked your credit report?\u00a0 If it\u2019s been over a year, you need to get on it ASAP.\u00a0 Many people don\u2019t realize how bad their credit is until they're rejected for a new loan.\u00a0 Save yourself the embarrassment and start checking your credit report on a regular basis.\u00a0 By law, you\u2019re entitled to a free copy from Experian<\/a>, TransUnion<\/a> and Equifax<\/a> once a year.\u00a0 When reviewing your report, look for any mistakes or unfamiliar accounts that may be hurting your score.\u00a0 It\u2019s imperative that you keep your credit in tip top shape because that\u2019s how you\u2019ll get the best interest rates.\u00a0 Easy score boosting tricks include keeping your balances low, paying your bills on time and not opening multiple accounts too quickly. Habit #7:\u00a0 Racking up bank fees<\/strong> Earlier this year, CNN reported that JPMorgan Chase, Wells Fargo and Bank of America raked in more than $6 billion from ATM and overdraft fees alone in 2015.\u00a0 Stop giving away your money.\u00a0 Next time you\u2019re running short on cash, go to your bank\u2019s website and look up the nearest ATM.\u00a0 It might be inconvenient but considering the average ATM fee is $4.57, the savings will add up.\u00a0 Alternatively, you can ask for cash back when you make a debit card purchase.\u00a0 Just make sure you actually have enough cash in your account to cover all of your bills since overdraft fees can run up to $39 per item.<\/p>","_et_gb_content_width":"","footnotes":""},"categories":[9],"tags":[],"class_list":["post-10276","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-personal-finance"],"yoast_head":"\n