No matter your age using smart money habits can make a positive impact on your everyday financial situation. It all starts with understanding the essential money habits that are the foundation of building a successful financial life. This foundation will be useful your entire life, even in retirement.
- Spend less than you earn: This is the only way to have money for savings and is key to finding a way to get out of debt if that is a problem for your current situation.
- Build an emergency fund: Provides a backstop for loss of income and can also help with unexpected expenses. Solving these problems is essential in avoiding financial issues.
- Track your money: It is important to know where your money is going because it gives insights on where to lower expenses. Expense control is the best way to have money to save.
- Prioritize paying down debt: Interest on debt is a drain on your income and the quicker you repay non-asset building debt the better your financial situation will become.
- Pay your bills on time: This simple habit can save hundreds in late fees. Another reason is that late payments can impact your credit score negatively which should be avoided.
- Build your credit score: A low score increases your loan costs because you will be charged higher rates. Plus, a good score can help lower insurance premiums.
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