Habits That Can Work Against Wealth Creation

Julia M. Carlson |

Are you undercutting your efforts to build wealth? Good money habits can help you as you save and invest for the future. Bad habits can leave you treading water financially. Let’s review three money habits to avoid.

Not saving enough. Instead of paying themselves first, some families pay others first. Dollars they could save and invest are instead spent on consumer goods and services they don’t truly need. Money that could be saved and invested for tomorrow is spent today. Are there areas in your life that you could cut costs?

Carrying too much debt. Every effort should be made to reduce the size of credit card bills, student loans and other consumer debts that risk siphoning money away from the pursuit of your long-range financial objectives.

Investing too conservatively. Historically, equity investments offer the potential for double-digit returns when the markets perform well. Fixed-income investments are frequently dependent on interest rates; when interest rates decrease, the return is greater. When interest rates increase, these investments are subject to increased loss of principal. Although no investment strategy or risk management technique can guarantee return or eliminate risk in all market environments, accepting some risk may give an investor a chance for greater reward.  

Are these habits slowing your wealth-building momentum? Consider where you stand today and gauge the potential positive impact that can come from paying yourself first and adjusting the way you invest.

 

 

 

Information in this material is for general information only and not intended as investment, tax or legal advice. Please consult the appropriate professionals for specific information regarding your individual situation prior to making any financial decision.

Email me your questions at financial.freedom@lpl.com or call 541-574-6464.  You can also post you question on our Facebook page: https://www.facebook.com/FinancialFreedomWealthManagementGroup

 

 

Information in this material is for general information only and not intended as investment, tax or legal advice. Please consult the appropriate professionals for specific information regarding your individual situation prior to making any financial decision.

Email me your questions at financial.freedom@lpl.com or call 541-574-6464.  You can also post you question on our Facebook page: https://www.facebook.com/FinancialFreedomWealthManagementGroup