4 Signs You Are Teaching Your Kids Bad Financial Habits

Teach your child about money matters

You spent that extra money in your bank account on a weekend trip to New York City, instead of using it to pay down your credit card debt. Maybe you even accidentally paid your power bill a week late last month.

Are you inadvertently teaching your teens' bad financial habits?

You might be.

It's not easy measuring how influential parents are when it comes to influencing their children's behaviors. Just ask parents who've tried to change a teen's mind on anything from fashion to dating to finding a job. But a 2014 study by Bank of New York — New Rules for Engagement — found that 52% of Millennials ranked their parents as their most trusted source of financial advice, while just 10% trusted the money advice of their peers.

"Maybe children don't trust their parents when it comes to picking friends, music, spouses, or even careers, but when it comes to financial advice, parents come out on top," says Kendrick Wakeman, founder, and chief executive officer of FinMason.

Because of this, parents have a special burden to pass good financial habits on to their kids. Wakeman says that ideally, parents do this by example — they save money, pay their bills on time, and don't run up their credit cards. Their children see this and do the same things when they're adults.

But what if you are far from the perfect financial role model for your children? What if you often forget to make your car loan payment on time? What if the debt on your credit cards grows every month? Might you be passing bad financial habits onto your kids?

Here are four signs that you are passing bad money habits onto your teens, and what to do about it.

Can't You Just Use Your Credit Card?

You're in the department store shopping for a flat-screen TV. There are models within your budget, models that you've saved up enough to buy with cash. But there's an even better TV that's outside your budget — far outside it. Your teens want it. When you tell them it's too expensive, they ask "Can't you just put it on the credit card?"

This is a sure sign that your children have watched you use your credit cards to buy items that you can't really afford. It's time to act like an adult and only make credit card purchases that you know you can pay off in full once your bill comes due. You want to teach your teens how to use credit cards wisely; using them to buy items that you can't afford is not how to do this.

Let's Get One More Thing

You're at the grocery store with your teens. You've checked off every item on your shopping list. But as you get nearer to the cashier, your teens start tossing packs of gum, magazines, or candy bars into your cart.

The odds are good they've learned how to impulse shop from you. You don't want your teens to grow up to be impulse shoppers. Those extra Milky Way bars and bottles of Diet Pepsi add up. Resist the urge to add them to your cart at the last minute. And make sure to stop your teens from adding them, too.

Can't We Just Buy This One?

You've decided to buy a new laptop for the family to use. Your teens are thrilled with this idea. Your plan is to do some comparison shopping, either online or at local electronics stores. Your teens, though, just want to buy the first laptop they find online, regardless of its price or reviews.

Look back at your own behavior. How many times have you simply gone online and ordered a new washing machine after a 10-minute online search? Have you gone to a car lot and simply picked the first car shown to you by the salesperson? If your teens have observed this behavior, the odds are high that you've taught them that comparison shopping doesn't matter. You can reverse this lesson, though. Next time you need to buy a new dishwasher, refrigerator, or other large items, take your kid's comparison shopping with you. They need to see just how much money you can save when you shop around.

Why Can't I Have It, Too?

Your daughter wants a new pair of expensive jeans because her friend at school has the same brand. Your son wants a new pair of gym shoes because his friend dropped $50 on the same pair.

It's likely that your teens have learned this why-can't-I-have-it-too behavior from you. Have you upgraded to a new car because your neighbor did the same? Have you purchased a swimming pool because you've seen your neighbors enjoying one? It's okay to buy these things if you can afford them. Teach your kids self-control — and help them avoid neighbor envy — by only upgrading to a new car when you're financially ready, no matter what your neighbors have parked in their driveway.

You Don't Need a Big Bank Account to Teach Good Habits

Debbie Crowder, branch banking executive vice president at Richmond, Virginia-based SunTrust Bank, said that parents, even if they are struggling with their own finances, can teach their children how to avoid their mistakes and become financially savvy adults.

"Involve your child in the day-to-day financial decisions you make for your household," Crowder says. "When the power bill is higher than usual, explain the reason why and discuss how the entire family can conserve energy the next month to lower the bill."

Chris Hogan, a financial speaker with Ramsey Personalities in Brentwood, Tennessee, says that parents can pass on good financial habits even if they themselves have a history of financial mistakes.

"The worst thing we can do as parents is to pretend like we're perfect," Hogan says. "It's important to talk about the mistakes we've made financially. That's what can make a real impact on our children's behavior."

How do you model good financial behaviors for your kids?

Source:http://www.wisebread.com/4-signs-you-are-teaching-your-kids-bad-financial-habits?ref=relatedbox

My 7 Investing Rules

Learn how to invest your money

Having investing rules is important as it is what keeps you from following the flock and making questionable moves. How often do you resist buying a hot stock? With some investing rules, you can avoid falling for hot tips or becoming emotional.

I will be the first to admit that it has taken me a few years to really sort out my rules. The goal is not to have a long list but to have some core rules that you cannot ignore when investing. It keeps you honest with your goals.

Investing Rules

1. Invest only in what I know and understand

Peter Lynch said it best if you cannot explain the business so that a child can understand it, then it’s probably too complicated. This mantra is the first filter I apply to the companies I put on my stock watch list.

2. Invest in companies that provide necessities

There are services or products in the world that we cannot live without, those are sustainable services with a consistent or growing demand. For example, financial services, oil & gas, food, utilities, and so on. You can rationalize that something is going to be needed even though it’s not an essential product or service to our lives and that’s fine but your core portfolio should have companies with essential and necessary products.

Once those sectors or necessities are identified, you can start focusing on the best picks. The strength behind this rule is that you can feel confident this company will be around due to the nature of their business.

3. Only invest in dividend-paying stocks

I have made it a focus that I want to be paid when markets go sideways and to that end, my investments must pay a dividend. It also means I can expect a minimum return on my investment while I wait for the stock to appreciate. When you apply this to your stock watchlist, you filter out another really large number of companies.

4. Focus on companies with an economic moat

I look for companies with an economic moat. More often than not, those are large companies. I tend to focus on medium and large-cap companies. Anything under $10B is a little small even if they are developing an economic moat. Companies with an established economic moat will often have grown to be large-cap companies. To that end, I look for an economic moat with a medium to large capitalization

5. DRIP everywhere

I want my money to work, so I let it re-invest itself. This rule will change in retirement but during my wealth accumulation period, I DRIP it all. It’s a form of compound growth. Many companies also offer a discount when you DRIP so you can take advantage of a price discount of 2%, 3%, or even 5% for some companies.

6. Diversify by sector

Diversifying by sectors allows you to add new money to underperforming sectors and take advantage of good buying opportunities. If your diversification is to buy 5 different banks, it’s not really much of diversification from a risk perspective because they are all in the same sector.

You’ll want to assess how much you want to allocate per sector and then start managing it that way. It makes choosing where to add new money an easy task as you want to try to keep the allocation you chose.

7. Limit the number of investments

I have set my number of companies to own and manage at 40. Any more than that and it’s too much to track. I am already there so if I intend to take a new position, I need to sell one. I am also at the point where I simply need to add more money to existing holdings. This number must really come from you and what works for you.

There is an obvious one that I have not added but it’s a hard one … Buy Low, Sell High. The reason I have not mentioned it is that it can be hard to always buy low since you cannot predict what the markets will do. If the market drops for whatever reasons, you can’t beat yourself over it. If you have cash, you can add more but I prefer to rely on my sector allocation to choose where to put my new money. To be a value investor is also quite hard. It’s not easy to identify a good price for a company as it most often trades on future earnings. IF this was easy, why would analysts get it wrong all the time ?!? For some companies, you sometimes have to buy near a 52-week high, that’s just how well those companies do.

Readers: Do you have a rule not listed you want to share?

Source: https://www.dividendearner.com/7-investing-rules/

Cashback Credit Cards - How They Actually Work And What You Need To Know

Cashback Credit Cards

As Singaporeans, we're an interesting species. When it comes to looking for good food or places to make out, we look online. But when it comes to our personal finances, like looking for the best credit cards, we ask our family and friends.

And the first thing your family and friends will say is, "Get a cashback credit card. You won't regret it." And you know what? As annoying as it sounds, they might be on to something there.

What is a cashback credit card?

A cashback credit card is basically one that earns you cash rebates whenever you use it. In "kiasu" Singapore, this is also known as a WIN-WIN situation.

It's like how "Shop N Save" became a household name in Singapore simply with the suggestion that you could save while spending. Never mind that the brand has since become absorbed by Giant. The fact remains that as a concept, it always makes sense to find ways to save money.

How does cashback work?

Every time you charge a cashback credit card, you earn cash rebates. These cash rebates are often put in a separate account so that you can redeem them at participating merchants or whenever it's convenient.

Say you get 5 percent cash back for dining on the new ANZ Optimum World MasterCard. If your meal is $100, that's $5 cashback.

Now, I must emphasise that cash rebates are not immediate discounts. You still need to be able to pay the full amount for your transaction first.

Let's use the example of the $100 meal with 5 percent cash back. It doesn't mean that only $95 gets charged to your card. If your available credit is $95 and you use your cash back credit card, your card will get declined because you can't afford the full amount.

How do you redeem your cash rebates?

There are so many different cashback systems available in the Singapore credit card market today. However, in general, this is how it works.

The cashback you earn each month is accumulated in a separate account. These rebates are then automatically used to offset your spending for the month, subject to several requirements, of course.

For example, the American Express True Cashback Card needs your account to be in good standing and not overdue before they give you your cashback rewards. The Citibank DIVIDEND Card only credits your account when you accumulate $50 worth of rebates.

The redemption of rebates is an extremely important factor to consider when deciding on a cashback card because if your lifestyle and expenditure aren't able to fulfil certain requirements then you're wasting an opportunity to save more.

What do you need to look out for when you choose a cashback credit card?

There are just two main questions you need to ask yourself when choosing a cashback credit card:

1. How much cashback can you earn?

This is often the most important question to ask. There's really no point getting a cashback credit card if it offers you a pathetic amount of rebates. As we pointed out before, you can use the POSB Everyday Card to pay your utility bill but does it really make sense if you only earn 1 percent cashback? That's only $1 a month.

Some cashback cards now offer 5 percent cash back and more on specific transactions. The OCBC FRANK Card, for example, offers an impressive 6 percent cash back on every online transaction.

2. How easy is it to earn cashback?

While it's important to know how much cashback you can earn, but you should not make your decision based on this question alone. You also need to find out exactly how many hoops you need to jump through to earn your rebates.

For example, the UOB One Card promises to give up to a 3.33 percent cash rebate on any transaction, even recurring payments. That alone should make it one of the highest cash rebates amounts on the market today.

What's the catch? Here are just three problems I have with cards like the UOB One Card (and there are certainly other cards with some similar requirements, but this is one good example).

Firstly, you need to spend at least $300 each month for three consecutive months. That means if you miss the minimum spending requirement of $300 for just one month, you don't get ANY cash rebates for three months.

Secondly, you have to make at least 3 purchases on the card each month, or you're not eligible for the rebates. Now, you might say, this should be easy to do, especially if you're making recurring payments for your phone bill or insurance. But the fact still remains that, if you're not careful, you could forfeit your rebates for three months.

Thirdly, the cash rebates you earn are "UP TO 3.33 percent". In reality, the cash rebates are tiered at fixed amounts of $30, $80, and $150 per quarter (depending on a minimum required spend of $300, $800, and $1500 per month respectively). Basically, you may not get a 3.33 percent cash rebate all the time.

Say you consistently spent $750 monthly on the UOB One Card, for example. This is less than the second tier minimum requirement of $800 per month.

What happens? You then only earn $30 for the quarter, or $10 a month in cashback, which equates to 1.33 percent a month. Quite a difference from the 3.33 percent advertised.

Compare this to cards like the ANZ Optimum World MasterCard, where you earn at least 1 percent cash rebate with no minimum spending and no cap on how much cash rebates you can earn. You earn a little less, yes, but you never need to worry about jumping through any hoops in terms of expenditure amounts.

Why should I choose a cashback credit card over other types of credit cards?

The short answer - to keep your life less complicated. Unlike rewards cards or air miles cards, you usually know exactly how much you're getting back with a cashback credit card. However, it ultimately depends on your lifestyle.

Take the example of those of you who travel regularly, for example, because your family lives overseas. It makes much more sense to get an air miles card and channel all your expenditure into earning frequent flyer miles so that you fly for free.

But if you're just looking to save while you shop, then getting a cashback credit card is for you. And then YOU can be the one annoying your family and friends with your stories of just how much your cashback credit card is saving for you.

One final thing you MUST note: as with the general principle of utilising credit cards, paying your bills on time is especially key for cashback cards.

Unfortunately, we will probably never live in a world where cash rebates compound as well. So pay your bills. In full, and on time.

Credit Card Declined? Eight Possible Reasons.

Understanding why your credit card was declined is the first step in preventing it from happening again. Lack of funds, international purchases, or simply an expired card could be to blame.

The English language has seven words, which, when spoken together, will nearly always ruin the day of the person on the receiving end of them. That fateful sentence? "I'm sorry, your card has been declined."

 It can happen without warning. Maybe you're at Starbucks, ready to enjoy your morning coffee, or at Best Buy, about to buy the perfect Christmas present for your husband. No matter the situation, when the clerk hands you back your credit card with a shaking head and an apologetic smile, that sinking feeling in your stomach is universal.

Understanding why your card was declined is the first step in preventing it from happening again. I polled the finance experts here at Brad's Deals, and came up with a list of the eight most common reasons why a credit card would be declined:

1. You lack the funds or you've reached your credit limit.

The most simple explanation for a declined credit card is a lack of funds. Most credit card companies will not allow you to make purchases that will push you over your credit limit, so if you haven't been paying close attention to your credit card statements, or haven't made a significant payment in a while, that cap can come up quicker than expected.

This is a problem for debit card users as well, especially if you have overdraft protection enabled on your checking account. While having your debit card declined might be better than overdrawing your account and having to pay the steep overdraft fees charged by your bank, it's still an embarrassing inconvenience.

Avoiding being declined for this reason should be easy enough: just keep better track of your finances. Paying off your credit card in full every month can help you build credit while at the same time stopping any surprise card declines in their tracks. If you can't do that, make a habit of checking your credit card statement or bank balance online before you buy anything. If you don't have the money, you can't make the purchase--it's as simple as that.

2. Your account is delinquent.

Even if you haven't yet reached your credit limit, if you've missed some payments on your card, your credit card company could put a delinquent stamp on your account and prevent you from spending any more until you pay up. If you have really good credit, the card issuer might give you some slack and let you miss multiple payments before they cut you off, but if your credit report is marred with delinquencies, they'll probably put a stop to it after just one or two missed payments.

Having a delinquent account can really do a number on your credit, so if your card is declined for this reason, fixing the problem should be a priority. Pay off your delinquent balance ASAP or face serious credit problems in the future.

3. Misplaced fraud prevention

Make sure you call your credit card company before you take a big trip!

To prevent you from being a victim of identity theft, most banks and credit card companies monitor your spending patterns and locations to ensure that you are the one using your card. If they see purchases being made that don't fit the bill, they might freeze your account. While this is helpful if someone steals your wallet in Minneapolis and then tries to spend $500 the next day at a Target in Chicago, it can be a hassle when traveling or making large, out-of-character purchases.

So if you live in Boston but plan on vacationing in California, call your bank or credit card company before you get on the plane. They'll make a note of the fact that you're going out of state, and green light all the purchases you make while you're there (within your credit limit, of course). Same goes for big buys, like a TV, a down payment on a car, etc. If you're planning on buying something expensive that's not something you'd typically purchase, let your credit card company and bank know beforehand just in case. They might not freeze your account in all cases anyway, but it's better to be safe than to have your card declined while trying to buy something you really want or need.

4. You're making an international purchase.

Making online purchases from a foreign company is another way to set off your bank or credit card company's fraud alarm. While it might be tedious, giving your credit card company a heads up before you make a foreign transaction is probably your best bet. And always make sure to vet overseas websites to make sure they're legit before buying anything from them--online shopping can be a veritable landmine of identity theft just waiting to happen, so make sure you know what you're getting into before giving out your credit card number.

5. There's an authorization hold on your account.

A lot of businesses, like rental car companies and hotels, will put holds on your account when you make your reservation, which can sometimes be as much as a few hundred dollars. While you'll get that money back (when you return the car dent-free or check out without having damaged your hotel room beyond repair), if you're close to your credit limit when you make the reservation, the authorization hold could push you over the top, and cause your credit card to be declined.

It's a good idea to make sure you've got ample credit available before making a purchase or reservation with a company that will put a hold on your account, and you should always ask and make a note of how much the hold will be, and how long it will last so you don't end up getting a surprise decline.

6. Your card is expired.

When you first get a credit card, the expiration date can seem like a long time in the future. Most cards typically expire two to three years from the day they were issued, but if you're not keeping track, those expiration dates can really sneak up on you. If you try to use a card that's expired, it's going to get declined. Some credit card companies stay on top of this stuff and send you a new card in the mail before your old one expires, but others expect you to update your account yourself.

To avoid having your card declined because it's expired, make sure you're up to date on the expiration dates of all your credit and debit cards. If they're almost up, call up your card issuer and ask for a new one. Simple as that.

7. You made a typo on an online form.

I tried to order lunch online yesterday and my debit card was declined. I was worried for a minute, but then remembered I had recently moved and updated my address on my card's account. When filling in the online form, I'd put in my old zip code out of habit, not the new one that was actually attached to my account. This is an easy mistake to make, even if you haven't recently changed your address. Careless typos or even extra spaces left in the address box can cause your card to be declined, so next time you shop online, make sure to double-check that all your info is correct before you press the "order" button.

8. Your bank or credit card company is having technical issues.

Sadly, banks and credit card companies occasionally experience technical issues that interrupt their customers' card service in a certain area, or even across the world. When this happens, there's really nothing you can do but wait it out. Most banks and card issuers take this problem very seriously and will fix it quickly, but in the meantime, you won't be able to make purchases with the affected cards. The best way to be prepared for situations like this (and every other one on this list, too) is to bring back up--be it cash, another card, or a checkbook--you should always have a few different ways to pay on you so you don't get stuck in a sticky situation.

Has your credit card ever been declined? How did you handle it?

20 Productive Habits of Wealthy & Successful People

"Once you get into the habit of work, you can be more productive in the things you want to do." - Adrian Grenier

The vast majority of rich people didn’t get there by accident or luck. Accumulating wealth requires hard work, dedication, and – most importantly – maintaining a specific set of habits that foster prosperity. As Aristotle said, “We are what we repeatedly do. Excellence, then, is not an act, but a habit.”

If you’re looking to train your focus in work and in life but don’t know where to get started, these 20 habits of wealthy people can help illuminate your path to success.

Common Habits of Rich & Successful People

1. Wake Up Early

There are plenty of axioms about the benefits of getting up early, and they’ve remained popular for a reason: Rising early is a powerful path to success. Millionaires simply do not sleep in – they have too much to accomplish every day.

Author Thomas Corley spent five years studying the lives and habits of rich people and poor people before writing Rich Habits: The Daily Success Habits of Wealthy Individuals. Corley found that 44% of wealthy people wake up three hours before work starts, compared to just 3% of poor people.

2. Don’t Check Email First Thing

If wealthy people get up earlier than others, what are they doing with that extra time? Well, here’s what they’re not doing: checking their email. Many people believe starting the day with a perusal of the email inbox is productive, but wealthy folks know there are better things to do with that early morning time.

Some make a habit of meditating or writing in a journal, reading something educational, or getting a head start on an important project. Some simply have a healthy breakfast and get some exercise. Generally, wealthy people leave their inbox for later in the day and don’t make email a top priority.

3. Eat Healthily

Wealthy people value their health and structure their eating habits accordingly. Corley found that 57% of wealthy people count calories every day, as opposed to 5% of poor people. He also found that 70% of rich folks eat fewer than 300 calories of junk food per day, but 97% of poor people eat above that mark.

There are many reasons wealthy people watch what they eat, but the most significant could very well be to ensure a longer life – and therefore an extended opportunity to earn more.

4. Exercise Regularly

Coupled with healthy eating, wealthy people also believe in staying fit by exercising. Millionaires may be busy people, but they nearly always find time in their days to work out. In fact, Corley reports that 76% of wealthy folks do aerobic exercise at least four days per week, compared to 23% of poor people.

5. Have a Primary Goal

Wealthy people choose a primary life goal and focus on it with laser-like precision – even if it seems outrageous or unattainable. Everything they do, every decision they make, and the action they take, is done with this primary objective in mind. The intense concentration of this nature is what enables the wealthy to accomplish what others only dream about. According to Corley, 80% of wealthy people focus on achieving a single goal, compared to only 12% of poor people.

6. Write Down Goals

Setting goals are crucial to achieving wealth, but if it were the only requirement then nearly everyone would be rich. For the wealthy, setting specific goals and writing them down is a winning habit that works.

Of course, broad objectives – simply wishing to be rich, for example – are not goals. Specific goal-setting involves planning something tangible, such as earning X amount by Y time through Z activities.

Successful goals are actionable, and the wealthy are deliberate, dedicated goal-setters. In fact, Corley states that 62% of rich folks focus on their goals every day, as opposed to 6% of poor people – and 67% of the wealthy put those goals in writing.

7. Keep a Daily To-Do List

In order to achieve an overarching goal such as attaining wealth, you need to accomplish a number of smaller goals that feed into that main objective. For this reason, the majority of wealthy people create daily to-do lists – 81% percent of them, in fact, compared to 19% of poor people. What’s more, Corley finds that 67% of wealthy folks actually complete 70% or more of their to-do lists every day.

8. Believe That Time Is Money

In general, wealthy people work hard to achieve their goals, to the exclusion of most other activities. They avoid wasting time on nonproductive things like social media, and that’s because of their belief that time is money, and time misspent is money lost.

Instead of considering their weekly, monthly, or annual incomes, the wealthy focus on how much they should be earning every hour – and how much money they would lose by engaging in tasks that don’t produce money. This allows them to avoid the time sinks that most non-wealthy people engage in on a regular basis.

9. Be Frugal

There’s a popular saying that you have to spend money to make money. While this is true, most non-wealthy people don’t take into account the fact that the more money you spend, the less you have – and spending more than you earn does not result in wealth.

Rich people avoid overspending. Just because they could throw down half a million dollars for a brand new car doesn’t mean they do. The wealthy invest their time in comparison shopping and negotiation, getting the best deals for their dollars and saving more money than they spend. They develop reasonable budgets and stick to them.

10. Take Long Lunches

Many wealthy people take breaks of an hour or more for lunch. This may seem to go against the idea that time is money, but the rich also understand how to work smarter, not harder – and taking breaks is an important part of that. A long, relaxing midday lunch allows you to refresh yourself, and return to work ready to put in more productive time.

11. Read a Lot – But Not for Pleasure

Wealthy people tend to believe in the importance of self-improvement and continuing education, and they typically turn to read to fulfill these needs. Corley states that 86% of wealthy people love reading, as opposed to 26% of poor people.

What they read is just as important as how much: The rich person’s reading material of choice is nonfiction, usually self-improvement. 88% of wealthy people spend at least 30 minutes each day reading on that subject.

12. Take Calculated Risks

Wealthy people understand that risks lead to rewards, and as a result, they’re more willing to go out on a limb – though they generally take calculated risks, not reckless ones. Furthermore, the rich know exactly what they stand to lose if a risk fails to deliver its reward. They are more likely to have contingency plans in place to minimize potential fallout in the event that things don’t go according to plan.

13. Network With Success

The wealthy understand that in order to be successful, you must surround yourself with successful people. Networking with other rich people, or people with the drive and potential to become rich, is crucial for your own success.

Corley finds that 79% of wealthy people spend at least five hours a month networking – whether it’s at a conference, client event, online webinar, or just over coffee – while only 16% of poor people network consistently. This allows the wealthy to align their mindsets with others who have achieved success.

14. Know When to Stop Working

Hard work is critical for rich folks, but they also understand the importance of personal time for relaxation and self-improvement. For this reason, they rarely burn the midnight oil.

Knowing that if you push yourself to continue working every waking moment, you’re only going to end up exhausted, inefficient, and unable to produce worthwhile results is essential to success. The wealthy typically walk away from work by 5pm or 6pm and don’t return to it until the next morning, according to Inc.

15. Give Back

Charity and philanthropy are hallmarks of the wealthy. Those who are rich and successful tend to be generous with their wealth. Examples throughout history support this – from Nelson Rockefeller and Andrew Carnegie to Carlos Slim and Bill Gates. Giving back to the community and improving the world is an important characteristic for the wealthy.

16. Avoid Television

According to Corley, 67% of rich people watch television for one hour or less per day, while only 23% of poor people limit their TV intake. They also generally avoid reality shows – only 6% of the wealthy watch them, compared to 78% of the non-wealthy. Rich folks simply choose more productive ways to spend their time.

17. Avoid Gambling

Winning the lottery would make anyone instantly rich. For the most part, though, the wealthy don’t believe in luck. Instead, they believe that actions and habits create the opportunity for luck.

That’s why only 6% of rich people play the lottery regularly, compared to 77% of poor people. Wealthy people believe you have to create your own luck through focus and hard work.

18. Control Emotions

There’s a general assumption that wealthy people can afford to be honest and blunt, but the rich understand that not every thought or emotion should be aired. Good relationships are a crucial foundation for financial success – and speaking your mind can damage those relationships. Only 6% of the wealthy say what they’re thinking regularly, compared to 69% of poor people.

19. Listen More and Talk Less

Effective communication is another critical skill for the wealthy, and listening is an essential part of it. In general, rich people spend five minutes listening for each minute they speak. This enables them to truly understand where others are coming from, and to facilitate conversations that further relationships and foster success.

20. Don’t Retire

While the wealthy may have extensive savings and vast retirement portfolios, they generally have no intention of retiring – or at least, not as early as others. According to a Gallup poll, the average retirement age for Americans is 61, but the majority of wealthy people don’t plan to retire until at least 70 – not because they have to keep working, but because they want to.

The longer you continue to work, the more money you can make. The drive to stay healthy is connected to this goal. Rich people often choose not to retire, and since the majority enjoy what they do, the idea of continuing to work is both welcome and comforting.

Final Word

Money doesn’t solve every problem, but it’s often a sign of passion, capability, and drive in those who have acquired it. Try incorporating these strategies into your daily living and working routines, and put yourself in a position to increase your own riches, both in money and in life.

Do you know of any other habits of wealthy people?

Source:http://www.moneycrashers.com/productive-habits-wealthy-successful-people/

This One Financial Trick Lets You Buy Happiness

Happiness

Conventional wisdom has it that, to be happy, we should make a certain amount of money, wear certain clothes, or buy a house in a particular neighborhood. There are so many "should-do's" out there that it's easy to lose sight of the fact that making money isn't the end goal. Money is a tool, a tool we can use to build a life that's best suited for each of our individual needs.

Everyone has different happiness triggers, though, and a surprising number of us spend a lot of money on products that detract from overall happiness. According to Mindy Crary, Financial Coach and Certified Financial Planner Practitioner in Seattle, WA, "Conscious spending is about being aware of what kind of spending makes you happy and what kind of spending doesn't make you happy so that you can make successful financial decisions."

So, how exactly can one gain financial clarity?

Track Expenses

There's nothing sexy about the act of financial tracking, but the end result can be mind-blowing. According to Crary, people are often astounded when they uncover how much they're spending in categories that really aren't that important to them.

People automatically spend a staggering amount on coffee, dinners out, clothing, or other items that don't necessarily enhance life satisfaction. "Once you have complete clarity about where your money is going," she says, "you start to make better choices automatically."

Change Your Mindset

People tend to view budgeting as a negative or in terms of what's being taken away from them. "We get into this unconscious cycle of buying what we think we're supposed to buy," says Crary. "We get into routines without really examining them."

According to the research, we're happiest when we spend our money on "restorative activities" like exercise, sleep, travel, and spending time with family and friends. Conversely, consumption-based purchases like a bigger home or fancier car tend to detract from happiness.

According to Crary, it pays to think about the things that you'll gain by focusing your dollars in a direction that's really meaningful to you. "Conscious spending is about being more yourself and how being more yourself helps you save money," she says.

Make a Plan

Once you know what's truly important to you, it's easy to scale down on the things that are not. In other words, it's important to spend your money — so long as it's on things that increase your overall happiness. In her practice, Crary has seen people entirely change the way they live their lives. After assessing their spending patterns, clients have downsized homes, increased travel, and spent more time with family. Some have even given up their daily latte, although if that's what truly brings meaning to your life, by all means, keep buying it.

Ultimately, we often get caught up in a consumption treadmill and forget that we earn money to make our lives easier and more enjoyable. "Once people set up a plan when they're really conscious, they're spending money to make themselves happy," says Crary. "Only once they're truly aware can they get the best piece of every dollar."

Are you a conscious spender? How do you control your spending?

Source: http://www.wisebread.com/this-one-financial-trick-lets-you-buy-happiness

Should I Apply for a Credit Card?

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Recent trends have shown that Americans, particularly millennials, are wary of using credit cards. The problem largely stems from the way credit cards are viewed today. They are typically perceived as a "last resort" for consumers who can't afford to pay for their purchases. In reality, credit cards are an essential tool - for the right consumer, they can serve to improve financial standing and even earn them money. You should consider applying for a credit card if:

You Have a Bad Credit Score

Responsibly using one's credit card, and paying off balances, is a fantastic way of rebuilding your credit history. Individuals who have defaulted loans declared bankruptcy, or damaged their FICO score in any other way may be distrustful or wary of taking out any more credit. However, these consumers need to try and think of credit cards as a tool rather than a crutch. Making small credit card purchases and paying them off in full each month can serve to mend a tarnished credit history. While you may not get approved for the best cards available, a secured or entry-level credit card may still be available to you.

You Travel Frequently
Some of the best credit card rewards are those affiliated with airlines and hotel chains. When you pay for your travel purchases using these cards, you will earn rewards which can be, in the future, redeemed for more flights or nights. Each of your travel expenses will be offset by some rewards percentage - effectively working as a 2-4% discount. The only caveat is that this will rarely be a pure cash discount. Instead, you will be rewarded in the form of points or frequent flyer miles. However, if you are a frequent traveler, you will undoubtedly be able to make use of such rewards.

You Plan to Take Out a Mortgage
Even though buying a house or apartment may seem like the distant future, it is never too early to start preparing. The same way in which putting money away in your savings account is planting seeds that will help with your future purchase, using a credit card to slowly build up your credit history helps as well. Your credit score will predominantly affect two things when it comes to a big purchase: loan approval and interest rates. The higher your FICO score, the better your odds of being approved for your mortgage. Furthermore, a good credit score correlates with low-interest rates - this will ultimately decrease the total cost of your investment, as you will pay less interest on your purchase.

You Want to Get the Most Out of Each Purchase
If you use the right rewards credit card to make your purchases, while at the same time diligently paying off your balance in full each month, you are getting the most out of each purchase. Banks are vying for your business, and as a result rewards programs on credit cards are getting better and better due to fierce competition among issuers. If you use the right cashback credit card, for example, you can earn 2% off all your spending. Paying by cash or other means simply doesn't provide anything like it.

Bottom Line
Underlying all these points is a central theme of fiscal responsibility. You should never use a credit card if you will end up paying fees or interest. The ads that come in your mail, the banker, or some website talking about credit cards - none of these things know your personal habits as well as you do. If you know you can use credit cards responsibly, they can act to provide you with fantastic value. Making these little pieces of plastic work for you can strengthen your financial portfolio and put a few extra bucks in your pocket!