2 Bad Habits to Break to Increase Savings
2 Bad Habits to Break to Increase Savings
Your power of will should not be held liable to pay for your important liabilities and monthly bills. Furthermore, also the choice of how much to deposit on your emergency savings fund should not rest on the same criterion. Willpower is not enough to keep you going with your financial duties.
According to David Bach the author of a book entitled The Automatic Millionaire relying on your willpower will just lead to the mismanagement of your life’s choices. Some people would try to reason out that their lack of organization or their lack of financial support that’s why they fall astray in their finances, and tend to pay late. Late payments mean you paying a more expensive debt; this is because companies would require a $39 fee from clients who fail to pay on time, not only that, there is also an additional interest charge that is added up in the debt as well.
Bach advices that important bills should be made on time and also, you should never fail to make a monthly savings deposit for your and your family’s future need. Automatic payment is the answer to avoid making late payments.
You should get on track on your payments, make a schedule of tentative dates you can pay your due, subtract the due date by a week and make that your target date to settle accounts. Another solution is to make automatic payments via online banking.When you break away from the bad habit of paying your fees late, you can just sit back and relax because you will only have to pay lesser amount of debt.
Ulzheimer has another concern, paying only the minimum amount on a credit card. This is not very good for the credit card borrower. Paying only the minimum will roll over about 97% of the remaining amount and will just be another addition to the interest you have to pay.
You should make sure that you set your automatic payments (if you decide to pay automatically) larger than the minimum amount.
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