(Akiit.com) We all want to plan ahead and have some savings for rainy days, deal with emergencies, and move up the career ladder, as well as the housing one. If you have not received financial training, chances are you are guilty of some of the habits that can potentially ruin your financial future and life. Let it be debt or not planning ahead, you will need to change your attitude and routines to achieve financial freedom faster. Find out more about the five deadliest habits that can endanger your financial stability.
1. Covering Daily Expenses on Credit Cards
Credit cards are good for larger expenses, especially if you already have a plan on how to pay the money back, and if they come with a zero percent introductory offer. However, if you find yourself paying for your daily shopping on the card, and you build up your balance faster than you would pay it off, it is time for a financial health check. Make sure you are not filling the gap between your income and expenditure with credit.
2. Not Keeping an Eye on Your Credit Rating
If you fail to maintain a good credit rating and don’t check it regularly, you are likely to suffer. You will need to make sure no
companies added negative notes on your credit file without a reason. Further, not knowing your credit rating will result in applications being made and declined. As every credit application reduces your score, you will soon find it hard to get a loan or mortgage.
3. Not Saving Enough
Without savings, you will need to rely on credit when facing emergencies. If you don’t yet have a savings plan, you should make sure that you talk to a financial advisor and get them to work out how much you can afford to save. Setting up a life insurance or a pension investment plan is another great way of saving money and getting the most out of your financial opportunities.
4. Constantly Shopping Around for Credit
One of the mistakes people often make is that they search for credit and make applications without knowing how it affects their credit score. Some companies allow you to check whether or not you are likely to be accepted before you go through the online application process. When looking for credit card consolidation loans, check who the products are designed for, and make sure you have a good chance of getting approved before hitting the “submit” button.
5. Being Too Loyal to Your Bank
You might have been with your bank for decades, but if their financial products are no longer competitive, you can look elsewhere. If your mortgage rate deal ends and you are offered a higher rate than your current one, start shopping around. You can reduce your monthly payments and the total interest paid by switching, and make your money go further. You might even use the savings to make extra payments and pay off your home loan early.
Whenever you shop for financial products, make sure that your decisions help you achieve your long term goals, instead of reducing your chances of becoming debt free.
Staff Writer; Greg Snow