4 Bad Money Habits 1. Skipping an emergency fund. Do you have three to six months’ salary stashed? If not, you’re not alone – a majority of Americans say they don’t have enough cash on hand to cover a $1,000 emergency.1 To find extra cash for your fund, get creative: take on part-time work helping families (see related story on back page) or trim some of the “extras” out of your monthly bills (think entertainment costs like dining out and cable/satellite service). 2. Carrying a balance on credit cards. The average credit card balance last year was $6,576.2 With an average interest rate of 17%, that adds up to more than $1,100 in interest every year! Strive to live within your means and pay down your debt. Did you know that your Primerica representative can provide you with self-help tools for you to use to create a game plan for paying off your credit card debt? It’s true! 3. Ignoring your credit score. A shocking 56% of people have no idea their credit score is the most important factor when applying for a mortgage, car loan and new credit card.3 Do you know your credit score? If not, you should! Your credit score can also influence whether or not you are approved to rent a house or apartment, the cost of your homeowner’s and car insurance and in some cases, whether or not you are eligible for a job (13% of employers check credit reports for all candidates; 47% check them for certain positions)4. Regularly monitoring your credit is essential to your financial health. 4. Thinking you can’t find money to save. Anyone can save. Here are some ideas that really add up: Put aside $1 in change each day and you’ve got $365. Buy a prepaid cell phone for $10 and pay by the minute instead of a contract ($360 saved per year, if spending $10 monthly, vs. $40 monthly contract). Instead of spending $5 on lunch each day, spend $2 making lunch at home—you’ve saved $780. That’s a total of $1,505 in one year!
Posted on: Fri, 28 Jun 2013 02:41:35 +0000