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Good Financial Habits....what are yours?

M

Mackie2k

Senior member
Ever since I got my first credit card, I always made a promise to myself that I would pay all my credit card debt off the 1st week of every new year.

I've been doing it for almost 10 years now.

Does anyone have anything they do to keep their financial life healthy?

 
Originally posted by: Mackie2k
Ever since I got my first credit card, I always made a promise to myself that I would pay all my credit card debt off the 1st week of every new year.

I've been doing it for almost 10 years now.

Does anyone have anything they do to keep their financial life healthy?
Click to expand...
That sounds like a plan that is ripe for abuse and rampant interest rate losses.

Ever since I got my first credit card, I always made a promise to myself that I would pay all my credit card debt off the 1st week of every new billing cycle.

Now that is a good financial habit.
 
Originally posted by: dullard
Originally posted by: Mackie2k
Ever since I got my first credit card, I always made a promise to myself that I would pay all my credit card debt off the 1st week of every new year.

I've been doing it for almost 10 years now.

Does anyone have anything they do to keep their financial life healthy?
Click to expand...
That sounds like a plan that is ripe for abuse and rampant interest rate losses.

Ever since I got my first credit card, I always made a promise to myself that I would pay all my credit card debt off the 1st week of every new billing cycle.

Now that is a good financial habit.
Click to expand...

Why? Paying off your credit card instantly doesn't build any credit. I also let my debt sit on 0% cards, so I don't pay interest.
 
I buy things on my secured visa, and usually pay it off every month - it's helped my credit score greatly. I do what the guys above are doing - I don't buy anything that I wouldn't be able to pay cash for. I have a new car, but the payments are only 229 a month.

I usually just watch what I spend my money on, and keep a cash reserve in savings to last me up to 6 months if something were to ever come up. I rarely eat out, or buy anything from vending machines - I make sure I have an adequate amount of groceries in my house to prevent any fast food runs. I also contribute 6% to my 401K, and my company matches 4% of that.
 
Plan for the future. Whenever you make a purchase, such as a car or furniture, look at the purchase as a major asset.

Buy cars 1 year old for maximum life and cost savings. Stay away from trendy vehicles and buy high quality, conservative brands. They give you the most bang for your buck.

Sometimes it's better to spend a little more on furniture if it's going to last a lifetime, rather than buying what looks good.
 
never carry a CC balance
keep 4 months worth of expenses in a liquid reserve
pay all bills on or before due
invest regularly and diversely (401K, reg brokerage, metals, bonds, real estate, etc)
 
Never carry a credit card balance over to the next month (except when I do it by accident, but my bank is pretty good about giving a grace period). I do, however, put pretty much everything I buy on credit in order to benefit from my CC's points program.

Get your retirement savings plan in gear early. I have a certain amount taken out of my paycheque each month automatically, saves me the trouble of doing it myself and enforces discipline.

Spend a month tracking all of your expenses. Then at the end of the month, take a look at that spreadsheet and see what your big outlays are and what you can do to minimize them (if that's your goal). Can't intelligently manage what you don't track.
 
*i research obsessively about what i buy to get maximum value

*i dont carry balances on my credit cards (use it as charge, really)

*take advantage of all "free money opportunities" (401k, stock options)

*have a personal splurge/savings investment account aside from standard retirement accounts

 
Save up if needed and buy the highest quality you can afford. Buying things once will save money and time rather than buying disposable items. Primarily I do this on clothing, shoes & furniture.


 
Originally posted by: K1052
never carry a CC balance
keep 4 months worth of expenses in a liquid reserve
pay all bills on or before due
invest regularly and diversely (401K, reg brokerage, metals, bonds, real estate, etc)
Click to expand...

Sounds about right.
 
Originally posted by: Mackie2k
Originally posted by: dullard
Originally posted by: Mackie2k
Ever since I got my first credit card, I always made a promise to myself that I would pay all my credit card debt off the 1st week of every new year.

I've been doing it for almost 10 years now.

Does anyone have anything they do to keep their financial life healthy?
Click to expand...
That sounds like a plan that is ripe for abuse and rampant interest rate losses.

Ever since I got my first credit card, I always made a promise to myself that I would pay all my credit card debt off the 1st week of every new billing cycle.

Now that is a good financial habit.
Click to expand...

Why? Paying off your credit card instantly doesn't build any credit. I also let my debt sit on 0% cards, so I don't pay interest.
Click to expand...

*smacks forehead*

They need to teach practical household finances in high school.
 
1. Never go beyond the grace period. Ie, don't buy if you can't afford it.
2. Live below your means. I've got an engineering salary, but I'm driving a 1992 Honda Accord.
3. Max your Roth and get maximum 401k matching. Put it into diversified portfolio, unless you're agressive and know the market.
4. Shop at walmart. They're evil because they take away from small business owners to a small degree...okay, but I'm looking out for me, not small business owners. When they offer a superior products and services, which does happen often, then I shop from them.
5. Cook your own food more than you eat out.
6. Water, tea, coffee are much cheaper than soda, fruit juice, etc and it's better for you. Could save you medical expenses down to road too.
 
Originally posted by: panipoori
I never buy anything I cant afford
Put about 500 dollars from every check into savings account.
Click to expand...

Does the money seriously just sit in a savings account? Inflation is eating it up you know. At the very least put it in a balanced mutual fund.
 
I buy for function, not for a name or image. (Clothes & accessories being the big item here).

If I can make it easily, I see no point in paying someone else to do it (coffee, sandwiches, pasta, pizza, salads).



 
Originally posted by: Mackie2k

Why? Paying off your credit card instantly doesn't build any credit. I also let my debt sit on 0% cards, so I don't pay interest.
Click to expand...

🙁 Statements like this are exactly why I think personal finance courses should be mandatory in both high school and college. It saddens me to think about how much money is wasted each year by people "trying to build credit"

That's good that you at least did this on 0% cards, but for future reference, you do NOT have to carry a balance to help your credit.
 
Save early, and save often. I started my retirement fund at 18, and am currently saving about 22% of my net income for retirement, without causing myself any major hardship. Having an awesome 403b match helps though. 😀

Dave
 
Originally posted by: cliftonite
I dont buy anything that I cant pay with cash. (I use CCs but only buy what I can pay off when the bill is due)
Click to expand...

Didn't read further than this. Don't have to. BEST advice for using CC's.

CC's = the devil

but

CC's = necessary for functioning in todays' world, unfortunately. Me personally, I'd rather barter some bolts of fabric and a few goats for what I need...but it isn't 422AD anymore.
 
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