Bad Money Habits
If you have trouble sticking to your financial goals such as getting out of debt, consider debt counseling. A certified and trained credit counselor isn’t there to judge or criticize, but to educate you about money moves you can make to improve your lifestyle. From debt consolidation to budgeting, the actions you take immediately improve your financial situation.
According to an article by The Washington Post, there are several money mistakes making you poor. The good news is you can turn your financial situation around by getting completely out of debt with a Debt Management Plan. A study by the Federal Reserve Bank of St. Louis cited by the Post found that people who are debt free have more wealth.
Other contentious habits associated with wealthy people included paying bills on time and living below your means. Debt counseling with a reputable company such as Christian Credit Counselors can help you get on the path to wealth.
Saving part of what you make
Some people spend whatever they have in their checkbook. If you tend to spend what you make, consider setting up automatic deductions from your paycheck or your checking account to move money into savings or retirement. Wealthier people save on a consistent basis. The key is to make saving painless. Automating your savings is an easy way to trick yourself into saving more.
Paying your bills on time
If you are behind on paying your credit card bills to the point where bill collectors are harassing you, you need debt counseling. By consolidating your credit card debt, you take control of the situation. Your creditors will agree to a Debt Management Plan so you have the peace of mind knowing you’ve resolved the debt without going to bankruptcy court. By learning proper budgeting tricks and strategies, you will never get behind on bills again.
Getting rid of credit card debt
Another characteristic of wealthier people is that they pay off any credit card debt they owe before the money is due. After fulfilling your obligations to pay off debt by making monthly payments on your Debt Management Plan, you can resume using credit cards. The ideal scenario, though, is that you never carry a balance beyond the due date. One trick is to set up on-line banking so you can pay through credit card throughout the month.
Accessing your liquid savings
People who tend to have more wealth also have money saved for emergencies as liquid cash. Some places to put your emergency savings include a money market account, regular savings account or even a safe deposit box. You want to keep your money safe. At the same time, people who are well-off don’t put money they might need within 5 years in the stock market because it’s too risky.
Finally, debt counseling will teach you the greatest secret of wealthy people: to keep your overall debt low. Most people need to borrow money to buy big-ticket items such as homes or cars. If you only buy items you can afford, you will avoid financial disaster. With a car loan, consider only taking out a car loan you can pay off in three years. With a home, opt for the 15-year fixed rate mortgage. Being able to pay off big-ticket items in half the time proves that you can easily afford the items.
At Christian Credit Counselors, we help our clients consolidate their debt with a doable Debt Management Plan that stops annoying calls from bill collectors. Do you want to know more about debt and how you can make smart financial decisions now that will help you secure a more prosperous financial future? Sign up for our newsletter for monthly money tips.