Habits of Wealthy People

Want to be wealthy? Then here’s some advice: Set a financial goal for your life, work with what you have, and make smart financial decisions moving forward. Here are the Top 4 habits of wealthy people – see how they do it, and start using them to build your own wealth.

Habit #1: They Learn From Their Mistakes

Most wealthy people actually don’t start out wealthy. In fact, many start out very poor. Many have also made the mistake of falling into massive, crippling debt.

So how did they become wealthy? Simple – they learned from their mistakes. They didn’t avoid the pain of debt and poverty – they embraced it, felt the burn, and promised themselves: “This will NEVER happen to me again!”

What’s your current financial pain? Want to feel that pain everyday for the rest of your life? Of course not! Be real with yourself – find the mistakes you made, and make adjustments to make sure you NEVER make them again.

Habit #2: They Have a Clear Goal

What’s your financial end goal? Is it to be a millionaire? Or simply freedom from any and all financial worries? How about securing a comfortable retirement with your loved ones?

Whatever your goal is, set it right now – and then make sure all financial decisions you make from now on nudge you closer and closer to that goal.

Habit #3: They Pay Themselves First

Perennially penniless people make the mistake of paying their bills first, and then putting what’s left over into their savings and investments. Don’t do that – there will be NOTHING left!

Instead, pay yourself first. Set aside a fixed portion of your income every single month to fill your emergency fund and retirement fund. It’s also a smart option to get more insurance if you’re feeding a family – if something bad happens, your family can invest the money and live off the interest.

Another way to pay yourself: Invest in skills, tools, and tiny businesses that help you generate passive income. The simple two-pronged approach of cutting costs and increasing income has helped many, many people rise from debt and poverty and achieve wealth.

Habit #4: They Find the Absolute Minimum to be Happy

And lastly, stop filling your life with stuff. In all the major and minor purchases you make in life, ask yourself two questions:

  1. What’s the ABSOLUTE MINIMUM I can be happy with?
  2. Is there a better option that helps me save more money in the long term?

Find the option that satisfies both criteria, and stick with that – you’ll save tens of thousands of dollars (or even more) over the course of your lifetime. And you can invest that extra money to push you even closer to your financial end goal.

So get started right now. Find out what you want out of life. Then find out where you are in life right now. Then use the four wealth-building habits in this article to bridge the gap.

Source: creditabsolute.com

Improve Life With Lower Debt

Statistics say that almost half of American households spend more money than they make each year. And if that’s not worrying enough, other statistics show that the average American household is more than $8,000 in debt – and that’s for credit cards alone!

The result: Households spend years, even decades, paying off debts. And this puts the rest of the American Dream at risk: The lack of money can leave the family unprepared for accidents, disasters, economic downturns, and retirement.

This is why debt reduction (if not debt elimination) should be everyone’s #1 financial goal. Before you put your money in an emergency fund, or insurance, or business, or retirement… we strongly recommend you lower your debt as soon as you can. Here are 4 compelling reasons why:

#1: You’ll Save More Money in the Long-Term

Death by debt comes in the form of compounded interest payments. On average, credit cards charge a total of 42% interest per year. Assuming your household is $8,000 in debt, that means you’ll be paying $3,360 in debt every single year… and if you can’t keep up with the interest payments, you’ll be paying EVEN MORE the following year.

But when you get out of debt, all that money goes into your pocket instead. You can use that extra $3,000+ to buy insurance, fill an emergency fund, start passive income streams, and prepare for your retirement.

The sooner you lower or eliminate your debts, the more money you’ll save, and the more things you can do in life.

#2: You Can Spend Money Freely 

When you’re free of debt, you’re basically free to spend your money on life’s other necessities: Insurance, an emergency fund, retirement investments, more comfortable living arrangements, and so on. And without any interest payments to worry about, you have peace of mind.

Being debt-free means you basically know that whenever you spend for anything, you’re spending money you HAVE, not money you OWE. Plus, you can sleep well at night knowing that you have enough money in the bank to carry you through any emergency, plus enough insurance just in case.

#3: Better Chances of Qualifying for Loans

The lower your debt, the lower your debt-to-income ratio (a valuable indication of your true financial wealth) will be. And when you have a low debt-to-income ratio, lenders will trust you more – they know you’re someone who pays their dues in time. So you’ll have a much easier time qualifying for loans – whether it’s for a new home, a new car, or capital for a new business, and so on. And on top of that, you’ll get the best interest rates possible. 

#4: Worry-Free Retirement 

When you’re buried in debt, you’re always stressed. And stress has been proven to lead to various life-shortening (and even life-ending) medical conditions. The longer you stay in debt, the higher your chances of getting seriously sick!

But when you have no debt (or at least keep it at a very manageable level), you have peace of mind. You can focus on preparing for retirement, pursuing a career, or simply enjoying life.

Lower or Eliminate Your Debt Now!

There are many ways to lower or eliminate debt out there, but it all starts with spending less money than you make, and then diligently paying off your debts every single month. That way, achieving financial freedom will only be a matter of time.

Learn how you can lower your debt more effectively by increasing your credit score and lowering your interest rates by contacting Credit Absolute today!

Source: creditabsolute.com

Improving Your Financial Freedom

Did you know that you could use your tax refund to improve your financial freedom? It’s true – in fact, it’s a hot topic among American homeowners. Everyone wants to know how to best use their tax refunds to secure financial security.

First, it’s important to know what a tax refund exactly is, as well as why you get it every year. Getting a tax refund simply means you paid a little too much for the previous year’s taxes. You basically gave the government a zero-interest loan, and now they’re paying you back. How thoughtful.

So what are the best ways to use your tax refunds? Here are our Top 3 ideas:

Tip #3: Invest It 

Securing a comfortable retirement is always a part of anyone’s plan for financial freedom. And in case you’re already strapped for cash throughout the year, your tax refunds just might be enough to secure your retirement for you over the next few decades. 

The idea is to invest your tax refunds faithfully, every single year for 20-30 years or more, in an investment vehicle (or collection of vehicles) that give you at least 8% interest per year. If, say, you received an average of $3,000 in tax refunds each year, and put it in an investment fund that gave you 8% per year, you’d have well over a half million dollars at the end of 36 years. 

And if you could wait another 9 years, that will double to a million dollars. That’s why this approach is best started as early as you can – the longer you can wait, the more comfortable your retirement will be. 

Tip #2: Keep It In an Emergency Fund

Some statistics say that only 2 out of every 5 American households have enough savings tucked away for emergencies. You can use your tax refunds to join that statistic, so you can sleep tight at night knowing you have a financial safety net in place.

How much is “enough savings,” anyway? Good question. A good practice is to set aside around 3 months’ worth of household expenses. That’s a substantial amount that will cover most unexpected emergencies, and it will also cover you in the event you find yourself out of work for three months.

And lastly:

Tip #1: Pay Off Your Debts 

On the road to financial freedom, debt is your biggest roadblock. In fact, debt pushes you further and further away from financial security – and the longer you stay in debt, the deeper in trouble you get.

So if you’re in debt, it’s a good idea to use your tax refund money to pay towards those debts. The goal is to erase ALL your debt, or at least reduce it to a very manageable level.

Our advice: Pay off the debts with the highest interest first, then pay off the debts with lower interest rates. If you have the option, go for debt consolidation to lower the rates even further, simplifying your payments. 

These are our Top 3 ways you can use your tax refund to achieve financial freedom. Start paying off your debts, filling an emergency fund, and building a comfortable retirement… starting with your very next tax refund.

Source: creditabsolute.com