7 Bad Habits That Make You Poor Even With A Good Income - The Financial Examiner

7 Bad Habits That Make You Poor Even With A Good Income

Do you have to count even single cent before spending money? Do you think where your money goes often even with a decent paid job?

If yes, you may spend more than you should.

This article shows you 7 common bad habits make you poor despite earning a good income.

1. You Spend More As Your Income Increases

It is good to improve your standard of life.

However, if you are constantly thinking to spend your money, you may end up in a difficult financial situation soon. If you continue to spend more money, you cannot save any money.

You need to keep your expense at a constant level (ideally, you should not spend more even when your income increases). That way can help you save more money.

2. You Think It is Too Early To Start Saving

Saving money is a good habit. However, People always think that spending money at this moment for fun or happiness yet believe that it is too early for them to start saving or investing.

In fact, you do not know what will happen tomorrow. Saving money is a plan for your future. You may lose your job within a few months. You may need to pay for your medical expense. Many things can happen in your future.

Many experts say that you should think about saving before spending. You can also set a small amount of money per month to save, and then you can spend the rest.

3. Being Unclear of Your Finances

Saving money is an art. It is important to plan your financial target. You need to find out what you need to have and not to have financially. If your ultimate goal is to get financial stable, you need to have a longer plan and ditch some of your current habits.

Write down your goal and review them regularly. That can help you keep yourself on track.

4. Constantly Updating Your Phone and Other Electronic Devices

New electronic devices come in the market regularly. You should buy the devices when you need, but it is not because you want to catch up the trending in the market. When you update your electronic devices, you clearly end up spending more money on them. In the long run, you spend a lot of money on them.

5. Not Keeping A Record of Your Money

We have this idea: we know where our money comes from and where it ends up.

In fact, this is not true. We need to be aware our expense, especially the small things always become the major expenditure.

It is a good idea to keep a record for all of your income and expenses. You can have a better idea for controlling your finances.

6. Ignoring Your Debt

Debt is dangerous. It is because the interest eats up a huge portion of the debt. It is a painful truth. Many people do not know how to get out of this awful cycle and leave them with no savings.

In fact, debt has a psychological effect that works against us. It is better to eliminate prevent any kind of debts. You should make your debt as a top of the list to pay off. Record the debt, work out a plan to pay off the debt.

7. Financial Procrastination and Bad Habits

Many people procrastinate with their finance. They want to delay to pay their bills.

In fact, procrastination would leave no room for savings. It can lead to debt growth.

On the other hand, bad habits, such as eating out often, drinking, partying, etc can eat into your income and rob you off.

Ditch the bad habits, and that is the way to leave you swimming in the financial wreckage.



5 Small Things Millennials Need To Know About Money - The Financial Examiner

5 Small Things Millennials Need To Know About Money

Dear millennials,

I am a millennial as well, but I regret many choices I made, and I need to build up my career at my age now. You may have a decent job, spend money on many things, and have not planned for a long term. You may not think money is the issue at this moment.

This list is something that I learned about money in the past, and it is something that every Millennial needs to know about money.

1. People Are Happy To Spend Your Money

You can order an expensive drink and show your friend you can order it. You think spending your money on the birthday parties, bridal showers, brunch dates, etc are the necessary way to expand your social network.

In fact, there is a secret. People are so happy to spend your money for you. You may get invited from someone, yet you feel bad to turn down the invites. You end up spending money for their parties, brunches, meetings, etc.

However, they might not truly your friends. They seem great and nice to you when you show up, but when you need help, they may ignore you.

On the other hand, it may be your best friend or college roommate’s special day that really wants to you come along once in a lifetime, but it can be awkward. For example, attending a wedding can be expensive. You might end up spending a lot of money. This may lead to a serious conversation about money.

So, be careful about the money who you spend on.

2. What You Earn in A Month Is NOT What You Can Spend

Many people have a few credit cards.

However, a credit card is not like having free money, and you should not live paycheque to paycheque. You should pay your credit card bill every month; otherwise, you spend above your limit. Credit card debt is the worst debt to have.

Here is a typical debt example from Meridian: a law school student received $50,000 credit for tuition. After graduating, this student luckily worked as a lawyer in a firm, yet it took her several years to get out of the debt.

Debt is evil, and they are so awful. Be careful of it.

3. Retirement Plan As A Priority

You are young only once. You should think about your future. Retirement is not that far away.

You should begin retirement planning with your first job.

Many people believe that Social Security will pay for all or most of their retirement needs. In fact, it only covers a minimum foundation of protection. A good retirement plan should be included the following: Social Security, employer-based retirement plan benefits, personal savings, and investments.

Let’s say you are making $50,000 annually before taxes, you need to have at least $40,000 a year to enjoy the same standard of living you have before you retire.

You can start small and grow. Even setting a small portion of paycheque monthly will pay off in the long run.

4. Set Up A Budget, Check Your Credit

You need to organise your household income and monthly bills. Setting up a budget is an easy way to keep track your expense and keep all your bills in one place.

On the other hand, you need to check your credit frequently. Some expenses can end up in a debt collection agency that you may not even realise. You need to review your credit report and it can give you a chance to look at any errors and evaluate your overall credit score.

Some websites offer “free credit reports” products but they may come with some conditions. So, you have to be careful when you sign up these “free” services.

5. Find Your Goal And Purpose in Your Life

This may not directly relate to money, but it is very important.

If you have trouble to figure out what you want to do with your life, you need to explore more. We are all born with certain skills and talents.

You need to choose a career that you can maximise your skills.

You may want to do something that does not require a degree, such as a professional athlete or photographer, but you need to think about your career as a long term. You need to consider a college degree seriously. If you cannot afford to go to college, you can go to a community college first, and then transfer to a university after 2 years.

Your earnings increase significantly with a college degree.

If college is not for you, you should get some technical training. There are many great independent schools. After attending in those school, your chance of getting a job increase.

There are demands for many professions, such as dental assistants, hair stylists, electricians, etc. There will always a need for training people in those professions.




10 Unnecessary Wastes of Money You May Have | The Financial Examiner

10 Unnecessary Wastes of Money You May Have

You have some obvious money saving tips, such as cutting back on eating out or ditching bad habits.

In fact, you may waste money in some common habits but you often overlook.

Here are 10 things you did not know you could save and you could stop wasting money on them.

1. Buying Brand Name Products

You are affected by many advertisements and brands promotions. You may ignore the store or generic brands products. From food to skincare, the local grocery or drug store should have a store brand for them.

In most cases, the store brand products have the same as the brand ones, but you do not have to spend more money on the big brand names.

Also, if you have prescriptions, you can ask your pharmacists for the generic version. They work the same as the brand ones, and you can save more money.

2. Grocery Shopping When You Are Hungry

You need to avoid two scenarios when taking a trip to the grocery store. If you shop for groceries when you are hungry, you are more willing to buy more things you do not need or that you will waste later.

This also happens when you go for a leisure grocery trip.  If you make your trip when you have other things to do, or you only have a limited amount of time to do, you will be less likely to spend time exploring everything in the store.

3. Paying for cable

If you are a tech-savvy Millennials, you can agree with this one easily. There are movie streaming services and other non-cable options in the market. Most streaming services are cheaper than paying for cable, and you do not have to pay for the extra channels you never watch.

4. Your bank

Banks can be evils. They can charge many different kinds of fees (admin fees, card fees, transfer fees, etc). Most of the big banks offer the most expensive fees but the lowest interest rates to the customers. Take a look at your bank accounts and see if there are any better options than what you are having.

Also, you should avoid using ATMs from another bank institutions because you end up paying more fees when you withdraw the money.

5. In-Game Purchases

Games are addictive. It is hard to break this habit. The small amounts of purchases eventually will add up, and you will suddenly be shocked how much money you spent on the game (and then you feel shameful or regret).

You should remove your credit card information from any games or apps.

You can go to YouTube or Google “how-to” finish the level if you are upset by a level you cannot finish.

6. Irresponsibly Couponing

Using coupons is good to save a little money. But, if you are thinking to use ALL coupons, you will end up wasting money.

In fact, you may convince yourself to buy things on the discount site, but those things are not necessary.

Do not use coupons as the excuse to buy things you do not use normally, even if it is only $5 to your usual purchase. You will end up doing this more and waste a lot of money.

You should stick to coupons for the things you always need or buy or something you really need to spend on. For example, you can’t fix your car and you really need to find someone to fix it.

7. Paying Full Price for Products, Especially Clothes

This sound silly, but you should not pay the full retail price for clothes. You can check the online stores, such as Amazon or Ebay. You can find many new and good quality products. Buying better quality clothes

Instead of buying cheap new clothes, you should buy some better quality clothing. It is because the better quality clothes last longer. Cheap clothes can easily break and tear in a short period of time.

If you really want to buy the branded clothing or shoes in the retail store, you should be patient. The retail stores usually mark up the price of the merchants more than what it cost to make them. Rather than paying the full price, you can keep an eye on them and wait for the discount. This is also a good way to think whether you love enough the items to buy.

8. Laundry Junk

You may use dryer sheets or fabric softener for your laundry, but are they necessary?

There are many cheap and easy alternative ways to replace the dryer sheets or softeners. You can even skip the dryer and line-drying works well.

9. Pre-sliced or Pre-packed Anything

When you buy the pre-cut meat and cheese in the store, you are likely to spend more money. You also pay for the labour cost (i.e. you are paying for the person who cut the items for you).

On the other hand, the packaged food is usually more pricey than making something similar by yourself. Many things are not difficult to make when you spend some time to prepare.

10. Disorganisation

Being disorganised can waste more money than you realise, at some point. You never look at the small service fees, forgetting where you left your keys, etc.

Your mess can cause you less motivated to be organised, and you end up spending more money in some ways.

Spend some time to organise your stuff and your life. You may end up finding the missing items and realise you spent more money for nothing.