When it comes to our habits every individual has certain good habits and some bad habits. It is no different with financial habits as well. As individuals we need to make our good personal finance habits stronger and avoid our repeating bad personal finance habits The following is a list of the 5 good financial habits that you must develop:
As per the latest studies on finance in Canada, the household debt spends reached $ 2.1 trillion in the 2nd Quarter this year. It was also seen that about 2/3rd of the same were towards mortgage-related payment whereas the remaining was towards non-mortgage loan and credit. Thus it is best to avoid spending so that your debts stay within limits.
This would have twin benefits. The first is that you would not have to pay more in the form of interest or in the form of penalties. The second is that you would have a better credit score. This means that you would have to pay on credit cards and other loans in case your rating gets adversely affected.
When we earn we often assume that our income would continue for the rest of our lives. The truth is that once you retire there would be a substantial fall in your income. This needs to be compensated with a good retirement plan. So you must always plan for your retirement and start saving accordingly.
Saving is a great habit. This would help you in many ways. The first is that the longer your investments are given time the better the results you can expect over a long time. Apart from this by starting to save early your chances of reaching your financial goals are always better.
When you buy any new appliance you would be asked to buy extended warranties to cover your repair costs. This may sound great but not be the best thing to do. The reason is that often it is seen that in future many of these extended warranties are not honored by the retailer. Apart from this, some reward credits already come in with the extended warranty insurance. So your appliance may already be covered.
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