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18 Things Financially Mature People Don’t Do

18 Things Financially Mature People Don’t Do

Jaws dropped during that classic scene in the 1995 movie Sabrina. Sabrina’s father is revealed to be more than just a quiet chauffeur with a passion for good books. He’s shockingly a millionaire! How did he accrue such wealth on a presumably modest salary? By imitating the investing habits of his prosperous employer. You too can learn from financially mature people. You can avoid costly mistakes by watching what they do – and perhaps more importantly, what they don’t do.

1. They don’t spend more than they make

A recent Yahoo Finance study found that “fewer than half of Americans are spending less than they earn.” This problem is compounded by high credit card interest rates. If you’re finding it difficult to stick to a budget, try switching to cash as your currency. This will quickly stop the bleeding because once cash is gone the spending has to stop.

2. They don’t wait until the end of the month to see how their money is doing

Credit card bills should be formalities, not surprises. Expense tracking apps (or a pen and paper) help you stay on top of your money.

3. They don’t pay for subscriptions they aren’t using

Gym memberships, magazine subscriptions, and season tickets to your favorite team’s games are great – if you actually use them. Spend some time going through your credit card statement and cancel a few forgotten subscriptions. Chances are, you won’t miss them.

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4. They don’t overlook small expenses

Small expenses add up. Look for opportunities to reduce them. Relax the air conditioning when you leave the house, turn off the lights in an empty room, use a refillable water bottle instead of buying a new case every week.

5. They don’t automatically spend “surprise money”

Tax returns and birthday money don’t have to be spent the day they’re received. Put some in savings, or use it to pay off debt.

6. They don’t use shopping to help them feel better

Shark Tank’s Kevin O’Leary argues that “retail therapy” should be avoided altogether. But come on now. We’re the species that invented sugarless candy – surely we can redeem the post-break up shopping spree? Here’s an idea: When heartbreak or frustration beckons you to the mall, think of one item you actually need. Maybe it’s a new pair of work shoes or a birthday gift for a friend. Set a “budget” for yourself and take only the CASH for that item. Then, enjoy a little shopping.

7. They don’t gift shop at the last minute

It happens to the best of us. We remember a birthday or anniversary with mere hours to spare. Then we’re off the nearest store in search of a last-minute gift and in our panic, we buy something expensive to hide the fact that we don’t have a card and the gift isn’t wrapped. Gifts are given to express love and affection. Shopping a little sooner can help you find a thoughtful, less expensive gift that shows how much you care. 

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8. They don’t eat out every meal

A recent experiment conducted by the Boston Globe found one home cooked meal cost half the price of a comparable restaurant meal.

9. They don’t waste leftovers

One of the easiest ways to make eating out more affordable is to simply save your leftovers. You can turn one meal into two.

10. They don’t let purchased food expire

Throwing away food is throwing away money. If you struggle with stinky fridge syndrome, try making more frequent trips to the grocery store. Buy exactly what you’ll need for the next 2 or 3 days, instead of “stocking up” for the week or the month.

11. They don’t spend money without stopping to think

Have you ever examined an old purchase and wondered, “What was I thinking?” Financially mature people ask the right question: “Do I absolutely love this?” Skip this step, and you’ll find yourself in need of a garage sale.

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12. They don’t buy clothes they won’t wear regularly

Closet full of clothes yet “nothing to wear”? Save space and money by searching for versatile pieces you can’t wait to show off. Here’s a minimalist who’s happy to show you how (with photos).

13. They don’t buy something just because it’s a discount

An old episode of The Lucy Show poked fun at this common mistake. Lucy chided her friend for buying a 50lb bag of dog food. Her friend defended herself saying “that was half price.” To which Lucy hilariously replied, “You don’t have a dog!” If you find yourself thinking “These shoes are half off, and they’re not that bad,” take the money and buy a pair of shoes you actually like. You’re more likely to get some use out of them.

14. They don’t buy anything without asking the price

It’s an old trick. Selling stuff without ever mentioning the price and it works, because we’re often too embarrassed to ask how much something costs. We don’t want anyone thinking we’re poor, but we have it backwards. Poor is what you’ll be if you don’t ask the hard questions.

15. They don’t avoid expenses that save them trouble and money in the future

Getting the oil changed may be annoying, but it’s cheaper than a new car. Getting your teeth cleaned may be uncomfortable, but would you rather have a root canal? When you’re trying to cut back on spending, trim from the fat, not the essentials.

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16. They don’t buy into get rich quick schemes

When people really do strike proverbial gold, they probably don’t tell the world about it in a “business opportunity” seminar. Financially mature people know that wealth comes through hard work and good choices over time.

17. They don’t forget to set financial goals

Without a clear goal and a doable plan, people tend to stay right where they are. Good goals illuminate the path between where you are and where you want to be.

18. They don’t let past mistakes keep them from improving

Peek at the statistics and you’ll quickly learn most of us aren’t very good with money. With practice, patience, and persistence, you can grow into financial maturity. You just have to get started. There’s an old saying. If you want a big oak tree in your backyard, the best time to plant it was 20 years ago. The second best time? Right now. Use these tips to start imitating the financially mature. Because let’s face it. Life’s more fun when there’s some money in the bank.

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Kyle Young

Operations Manager, GoinsWriter

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Published on January 8, 2021

How To Pay Off Credit Card Debt Fast: 7 Powerful Tips

How To Pay Off Credit Card Debt Fast: 7 Powerful Tips

Ever wondered whether your credit card debt is the reason you’re in a bad financial situation? You can’t enjoy any fun activities because a good chunk of your money goes toward debt payment. Heck, you’re even behind on some of your monthly bills.

The effects of clumsy debt management are too many to list here. This guide is going to help you discover how to pay off credit card debt fast and start chasing your financial goals.

Debt problems are the last thing anyone wants to encounter. But things can get out of hand when all the “little debts” you take accumulate in interests.

What if you knew some simple and proven ways to be debt-free quickly? Implementing them would mean better financial health for you. It becomes possible to free up cash for your “wants.” These include taking a trip or buying something you’ve always desired. All that while paying your bills on time!

Let’s not wait any longer. Here are 7 powerful tips for paying off credit card debt fast:

1. Pay More Than the Minimum Credit Card Payments

Many people only pay the monthly minimum on their credit cards. Truly, that’s the right amount for staying on good terms with your credit card company. But you need a different approach if you’re looking to achieve financial independence within a short time.[1]

Most of your payments go toward interest costs when you only pay the minimum amount. A substantial sum of your balance remains standing. As a result, it becomes more expensive to eliminate your debts.

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You don’t want to wait more than 10 years to get rid of debt while it’s possible to do it sooner. All you have to do is double that $100 minimum payment to $200 or go higher.

The good thing is that minimum credit card payments are affordable in most cases. By paying a higher amount, you reduce your interest costs, lessen your borrowing period, and boost your credit score.

2. Start With High-Interest Credit Card Debt

If you have more than one credit card debt, prioritize putting the extra money toward the ones with the highest interests. This debt pay-off strategy, known as the debt avalanche method, is essential for being debt-free quickly.[2]

First, you need to list down all the credit card debts you have in the order of their interest rates. Next, you choose the one with the highest interest and pay a significant amount toward it each month. It can be an amount twice or even thrice larger than the minimum payment.

At the same time, you make monthly minimum payments on the other debts. Their interest charges won’t be as costly as that of the first debt on your list. You only move on to the next high-interest debt after the first one is gone. Remember that your focus is on the interest rates and not the balances.

3. Revisit Your Budget

Budgeting is useful for tracking your financial moves. Once you create a budget, some tweaks along the way can make it work for you better. One situation that requires you to revisit your budget is when you’re struggling with debts. It might hurt a bit to slash some expenses. But you also don’t want to miss out on achieving financial freedom in the long run.

You can reduce some variable expenses to free up more cash for credit card debt payments. They’re the ones that change from time to time. Some examples are groceries, fuel, and clothing.

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Other opportunities for cutting down your spending lie in non-essential expenses. Instead of dining out all the time, you can cook at home more to save money. You can also share some subscriptions with friends and pay a fraction of the cost.

If you’re determined enough, you can eliminate all your unnecessary expenses and focus on paying off your credit card debt first.

4. Avoid Using Your Credit Cards

Do you want to know how to pay off credit card debt with a low income? One simple way is to stop using them. Having your credit cards everywhere you go means that you’ll be more tempted to buy unnecessary stuff. In this case, you spend money that you don’t really own and get deeper into debt.

The quickest fix to stop the debt build-up is spending with cash. You’ll be more aware of everything you can afford at any particular time. If you decide to keep one or two cards to ease the transition, always make wise choices. For instance, only use them when experiencing financial difficulties.

It’s best to categorize your fun activities under “discretionary spending” in your budget. This way, you won’t need more debt to kill your boredom. By halting your credit debt from accumulating, it’s easy to pay down what you already owe and be happy with the progress.

5. Start a Side Hustle to Boost Your Income

You’re probably turning away a lot of money by not monetizing your skills. Everyone has something that they’re good at doing. And you can use that to generate extra income for attacking your credit card debt.

If you look around your neighborhood, you can find several side hustle opportunities. It can be pet sitting, tutoring, or lawn mowing. You can start an online business by offering services such as digital marketing, content creation, and web development. Such skills go in high demand on freelance sites and job boards.

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Finding clients on social media is also a good strategy to utilize your skills and make more money. Facebook groups, Quora Spaces, and subreddits are some places to look for side jobs. You only have to join a niche-specific platform, share your services, and respond to any opportunities.

It’s possible to learn a skill, practice it, and earn from it. Use the free resources online or purchase some e-courses to get started.

6. Sell Your Used Items for Extra Cash

Starting a side hustle isn’t the only way to generate extra money. You can turn unwanted items into cash for paying off credit card debt. Whether it’s an old TV, book, or furniture, there is always someone itching to buy your used stuff.

A garage sale, as much as it’s old-fashioned, is perfect for getting your neighbors and passers-by to buy from you. You keep all the money because there are no business permits or taxes involved. While you may not make much cash, it’s better than leaving your stuff to go defunct in your storage.

Other than that, you can sell your used stuff on online marketplaces. Facebook groups are great places to start if you want quick approvals and hence sales. You only have to ensure that your listing follows Facebook’s commerce policies.

When selling any pre-owned items online, ensure they’re in good shape to avoid problems with your buyers.

7. Know When to Seek Help With Your Debt

Asking for help with your credit card debt can be challenging to do. But letting it drown you is a road you don’t want to take. While you may feel embarrassed at first, it’s the best way to get back on track when you run out of options.

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There are tons of non-profit credit counseling organizations that can offer you free guidance on how to escape the debt trap. An example is The National Foundation for Credit Counseling. They simply review your finances and help you determine the source of your financial problems. After that, they match you with an actionable debt management solution.[3]

In extreme cases, the debt solution can be:

  • Debt relief – where your debt is partially or wholly forgiven
  • Debt consolidation – taking out one loan to repay others
  • Debt settlement – the creditor forgives a significant portion of your debt
  • Bankruptcy – legal process for seeking relief from some or all your debts

It’s necessary to carefully weigh your options before deciding on the way to go. Find out how it might affect your credit score and any other risks.

Wrapping It Up

Debt is a major setback when you’re trying to prosper in life. Paying off credit card debt is essential if you want to reach your financial goals. That means having more free income, a good credit card score, and even a chance to retire early. You become more productive each day because of the peace in your mind.

So, you now have some tips on how to pay off credit fast. Go ahead and get rid of that good life progress killer!

More Tips on How to Pay Off Debt

Featured photo credit: rupixen.com via unsplash.com

Reference

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