Many people believe that wealth is a product of luck, but this is a dangerous mindset to have. The truth is, you make your own luck, and it all starts with your money habits. According to an ex-banker and personal finance writer, here are eight money habits that may be preventing you from growing your wealth.
The first habit to avoid is keeping too much cash in a savings account. While having some savings is important, having too much is a sign of fear. Cash loses its value over time due to inflation and currency devaluation, so it’s important to invest your money wisely.
Second, it’s important to stop hating money. Money is necessary to survive and to have financial freedom, so it’s important to respect it and appreciate what it can do for you.
Third, avoid buy now, pay later schemes, which are often disguised as convenient. Using debt to buy something now will only make you poorer in the long run. Instead, follow the advice of a 104-year-old grandma: if you can’t pay cash, don’t buy it.
Fourth, use financial automation to become more disciplined with your money habits. Set up automatic payments to your investment accounts as soon as you get paid, and use the rest to pay bills.
Fifth, stop trying to time the market. The best time to invest is always right now, so don’t wait for the perfect moment to come along. Sixth, don’t fall for the luxury trap. Instead of buying branded items at inflated prices, opt for unbranded, higher-quality items at a lower cost.
Seventh, focus on upgrading your skills to make more money instead of solely focusing on cutting expenses. Lastly, find ways to legally pay fewer taxes, which will ultimately leave you with more money in the long run.
By breaking these bad money habits and developing a stronger financial mindset, you can take control of your money and grow your wealth. Remember, you make your own luck, and it all starts with your money habits.
