The good and bad of financial habits

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Hello Everyone.

We are created with habits, even when it comes to money. While some habits can lead us to wealth and prosperity, others can lead us to financial ruin .
You should always keep your portfolio healthy, like 5-10% of your original assets should be tolerant limit. Beyond that, you should take your asset mix seriously and always maintain your budget so that you can figure out the leakage of your portfolio.
Apply the 50/20/30 rule to divide the total budget into fixed costs, investments, and flexible spending.
Also, create an emergency fund for things like sudden illness, loss of job or accident that can keep you away from your work at any time that can deny your finances.
Take note that this contingency fund can provide you with a buffer against unplanned expenses. Keep this money liquid for such expenses, such as 6 months of your income for a contingency fund.
Have an exit strategy on any investment you engage yourself in and make sure you pay your bills on time as soon as your salary hits your account. Don't let your bills pass the due date.
Be a disciplined investor, which means 30%–40% of your monthly income should be directed to investments.
Ignoring credit and maintaining a good credit score because every financial step of an individual is recorded in their credit history, which is critical for availing loans when in need and at a good rate of interest.
Mind you, a score of less than 750 is considered a bad credit score.

Thanks for reading.

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