You need to earn a lot to be well-off, right? Not so. Wealth is as much about controlling debt and spending as it is about income. If you earn a moderate salary and are free of short-term debt then you’re probably in a better financial position than someone who earns more, but spends it all on serving short-term debt.
Essentially, good money habits boil down to three simplified points. Spend less than you earn and invest the difference. Pay off your credit cards in full each month. Don’t buy things you don’t need.
With increasing fuel and food costs and the rand in a state of flux there may be a temptation to get into debt by making day-to-day purchases on credit, but it’s at times like these when minimising your debt should be your priority.
Sadly, a very small percentage of South Africans are completely debt-free.
Habits form the very first time you make a decision to do something, whether it’s charging to your credit card or deciding to stay in rather than dine out. You need to break bad habits that get in the way of financial stability and establish new, healthy money habits.
Here are five healthy money habits to implement right now to start a better debt-free life:
It is better to assess and discuss your impending difficulties than to ignore the problem or wait for creditors to call you wanting to know when you are going to pay back their money.
Need an assessment? That’s why I’m here. Let’s get in touch!