10 Things Financially Successful People Avoid Doing
Last updated 06/27/2021 byRolla Bahsous
Being successful in life isn’t always about money, but it is important. Stop envying the rich people in your life, and join them in being debt-free, financially stable, and happy! Below are ten things that financially successful people don’t do so that they can avoid stress, and live richer lives (pun intended).
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10. They don’t ignore their budget plans
Setting a budget is great, but sticking to it is what keeps your bank account afloat. Financially successful people won’t just talk about saving and living within their means, but will actually do it. Because of this, they don’t splurge or overspend and can take costly emergencies in stride.
Don’t have a budget? Get started with How to Make a Budget Plan That Works.
9. They don’t sign up for new credit cards
Those who are successful with their finances limit the number of credit cards they have and don’t sign up for a credit card just because their bank added a neat sign-up gift. By limiting their available credit, they also limit their spending so that they’re able to save money.
8. They don’t overlook “saving” in their financial planning
Not only do financially successful people budget and plan their finances, but they make saving money a priority. They don’t ignore their savings accounts and make sure that those accounts are earning interest. They’re masters of automatic savings and have auto-transfers set up so that money is automatically deposited from their checking every month.
7. They don’t ignore investment opportunities
Success isn’t just about good habits, but about finding opportunities to improve. Whether they invest in property, stocks, startups, or a retirement fund, those that are good with money are smart with their hard-earned cash. They use it to grow their wealth and ensure their financial future.
6. They do their financial literacy homework
Being successful with money means being smart enough to do research on important things, before getting blindsided. Interest rates, mortgage payment plans, retirement funding. These topics won’t teach themselves! It also means being proactive by seeking help from a financial planner or advisor when needed. Knowing what resources to use and how to use them definitely keeps your bank accounts happy.
Follow a few financial blogs and websites to stay up on current trends, like a few of these: Top 100 Personal Finance Blogs.
5. They avoid and get rid of any debt
In order to focus on saving money, financially savvy people eliminate debt by keeping up with their monthly bills. Prioritizing payments goes hand in hand with budgeting. The faster you’re able to reduce debt without incurring interest fees, the more you’re able to work on saving money so that you’ll never be in debt again.
4. They don’t make impulsive decisions
The ability to make decisions carefully allows you to curb any impulse spending. While thought out decisions are usually a habit in different aspects of life, doing research before shopping means that you aren’t spending unnecessarily. More often than not, taking the time to do research will result in a nice-looking savings account.
3. They don’t let any setbacks discourage them
Being ambitious while maintaining a realistic attitude works well for financially stable people. If they encounter any setbacks on their road to success, they learn from their mistakes and move on. Dwelling on mistakes or financial bumps in the road, like a bad investment, may make matters worse.
2. They don’t bite off more than they can chew
Yes, successful people are ambitious and chase their dreams, but they are also logical and realistic. This means that their lifestyles aren’t as luxurious or expensive as they dream of one day having, because they also know what they can and cannot afford, and what they should be spending money on. This means that they value their money enough to save it rather than throwing it away on unnecessary materialistic items. They’re honest about living within their means. They pick and choose how they spend their money wisely, even for something as simple as choosing a wallet-friendly restaurant for a social outing.
1. They don’t ignore insurance protection
Being money smart means making honest allowances for unforeseen circumstances. Having a savings account for emergencies is great, but having proper health and life insurance will secure you and your loved ones, should anything unfortunate happen. Also important to note: financially savvy people do their research, compare rates, and aren’t talked into paying too much for insurance.
Related article 15 Habits of Debt-Free People You Should Copy
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