Best Money Tips For Everyone by Malaysia Money Coach

Common Roadblocks to Wealth Building  (..con’t) 

4. Incurring Too Much Debt
If you’re spending all your money paying interest on credit cards and installment debt, you won’t have enough left for savings. When you buy on credit and don’t pay the balance off at the end of the month, you end up paying much more for your purchases. A $1,200.00 flat-screen TV can end up costing you $2500, but you’ll never know it because the true cost is hidden in your credit card payments. Pay cash and stay away from credit card debt if you want to accumulate wealth.

5. Not Saving Enough for Retirement or Starting Too Late
When you’re in your 20s and 30s, it’s easy to think you have all the time in the world to accumulate wealth and save for retirement. The truth is, you’ll have to save a lot less if you start now and give your earnings time to compound. If you’re over 40 and you’re behind on your retirement savings, you’ll have to save much larger sums to ever catch up to where you should be. Start saving early, and save at least 10 to 15% of your income, and you’ll be well on your way to accumulating wealth.

6. Giving Control of Your Money to Someone Else
If you’re not involved in your day-to-day family finances, you’re putting yourself at risk.
If you’re married and you let your spouse handle all the financial matters, you’re at risk if your spouse dies or becomes seriously ill or if you divorce. Know the details of your family’s finances, investments, debts, retirement savings, etc. Don’t turn your investments and financial affairs over to a broker or financial consultant without keeping abreast of what is being done with your money and being involved in investment decisions. Never give total control of your money to someone else.

Avoid these money mistakes and increase your chances of successfully accumulating wealth.

This entry was posted on Friday, April 27th, 2007 at 6:06 pm and is filed under Money Management. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.