In 2022 many personal finance experts predict that the latest economic crisis
will hit home if this happens most people will likely have to face the
impending consequences of their bad money habits but fortunately you don't
have to be one of those people because in this video i will share with you
seven money habits you must avoid in 2022 and if you're new to the channel
then hit the subscribe button below for more life-changing content habit number
one getting comfortable taking on consumer debt in 2022 a lot of people
will likely be caught in the trap of consumer debt this is because it's so
easy to get caught up in a materialistic world and get into debt sadly most
people are fully aware that credit card debt is one of the worst cons of debt to
have but still assume it anyways now i will admit that credit cards offer a ton
of convenience but they can also be the cause of financial problems this is
because people tend to overuse them charging them more than they actually
have the cash to pay back which leads to more interest and impending financial
doom if you ask me developing the habit of being comfortable with having
consumer debts is one of the greatest financial mistakes you can make poor
people are often entrapped by debt in their search for the american dream
while wealthy people can easily afford to repay their debts and this is just
one of the factors that separate these two economic groups honestly it's quite
unfortunate when people relinquish their dream of financial freedom to settle for
comforts and debt but as a boss you must avoid this from happening to you avoid
getting into unnecessary debt and focus on getting out of any debt mess that you
may have gotten yourself into people have to remind themselves that they
don't need debts to pay for their needs you can create wealth but to do that it
is imperative to get out of consumer debt such as credit card debts those who
are in debt have a tendency to compromise on their financial goals you
should always keep in mind that your finances are just as necessary as other
areas of your life if you find yourself in debt do not compromise on your
financial goals instead stay strong review your expenses cut down where
necessary and of course set a budget also you need to educate yourself about
various kinds of debt there are debts that are referred to as good debts
because you can use them to create an investment or business opportunity then
of course there are bad desks which are usually used unnecessary things and when
you can avoid the latter you'll be sidestepping a major mistake that most
people unfortunately are going to be making in 2022 time number two paying
yourself last most people have a terrible habit of putting themselves
last in their list of priorities this is such a terrible money habit that will
only make you poor in the long run you need to make it a point that as soon as
you get paid you should pay yourself first but before we move ahead what do i
really mean by paying yourself first well stay with me and i'll explain this
video paying yourself first simply means automatically setting aside a certain
amount of your income for saving contributions immediately after
receiving your payment this ought to be done even before you pay your other
bills and expenses and this is an excellent habit that everyone should
develop because otherwise you risk having nothing left when everyone else
gets paid and that simply won't do basically whenever you get paid always
set aside some of it for yourself whether big or small you can decide how
much but i personally recommend at least 30 percent habit number three spending
without tracking spending money without tracking is one of the deadliest habits
that a lot of people have developed over the years however should you discover
that you also possess this habit hopefully before this video is over
you'll understand why you simply cannot continue living that way the problem
here is that most people fail to really understand their expenses and by this i
mean that they have little to no idea of how much they are spending on a monthly
basis these are the main reasons why most people get into bad money habits
such as overspending and not saving enough money if you have little
comprehension surrounding your expenses it will be extremely difficult for you
to save or cut down on what you spend in order to create a strong foundation for
your financial future it is vital that you keep track of your expenses this way
you can easily save money where there are necessary expenses and if you don't
have any planned savings contributions then you'll just continue with your
normal spending habits which i'm gonna guess haven't gotten you as far as you
would like financially keep in mind that there are different ways to track your
spending there are simply the pen and paper method which most people still do
but electronic tools are available today which will help you track your expenses
without a lot of hassle what's crucial is that you know what you're doing
before you jump right into any method if you aren't very good at tracking your
expenses on your own it would be best to try and learn how to do it properly
first before you start tracking your own spending whether you use pen and paper
or electronic methods the most important thing is knowing where your money goes
so that you can make intelligent financial decisions and optimize your
future wealth habit number four manually managing your investments a lot of
investors and traders still use the old manual way to trade online this method
is quite time consuming and it can also be very confusing for some traders and
if this sounds like you it's time to make the move to the 21st century and up
your investing game once and for all and you can start by using automated trading
services by using automated trading services and apps to manage your
investments you can essentially make a lot of valuable and efficient money
management decisions in the long term let's face it there are a lot of
problems that can be caused by losing track of your investments and when this
happens you will end up facing unnecessary hardships because you don't
keep track of your assets regularly your investments will fall into the red or
worse and you may lose every last penny you've invested so when trading you'll
have to deal with a lot of information all at once it's no wonder manual
investing has been replaced by modern automated trading sites that many people
are already using today these computerized trading sites include robo
advisors trading signals and vast arrays of charting software with these types of
automated trading solutions you don't have to worry about managing your own
investments because everything will be taken care of for you you also have the
freedom to sit back and relax while these automated trading sites handle all
of your trading and investment transaction when you automate your
investments you'll be able to minimize the stress that comes along with
manually trading online however this is not to say that you leave everything to
automation you still need to be on the lookout to know when you need to make
modifications to your investment strategies habit number five paying
unnecessary tax like most individuals you probably don't fully understand how
taxes work and this is a bad habit that you should try to fix quite a lot of
people think that they will only be paying government taxes when they are
working and receiving a paycheck but tax can also be applied to your income even
if you don't have a job the fundamental issue here is that most people don't
know how much tax they're actually paying so they end up paying more than
needed it's helpful to understand how you're being taxed because knowledge of
it can strengthen your financial security so what is the best way to
successfully achieve this goal stick around and i'll elaborate in this video
first what you're going to want to do is calculate your expected income for the
year for most people this is their annual salary and this amount will give
you a rough idea as to how much you will owe in taxes at the national and local
level then based on these figures you can start to devise a plan to reduce
those owings as much as possible for instance if you're an employee you can
contribute to your employer's 401k plan to reduce your tax owings in the current
year and potentially even get an employer match as a business owner you
can seek greater deductions or alternate tax structures that can save you money
now and into the future in short when it comes to tax the more aware you are of
the taxes you're paying the more you can avoid them have a number six succumbing
to the lifestyle creep lifestyle creep is a bad habit that you need to avoid at
all costs this is a problem that many people often encounter when they begin
to step up their lifestyle lifestyle creep refers to the habit of spending
more as your income increases sadly this is an issue that aggravates most people
who have larger incomes if you're one of these people you may need help curbing
this bad habit before it gets too out of hand the best way to deal with lifestyle
creep is to keep a close eye on your expenses if you're struggling to handle
your current expenses it can be assumed that soon enough you'll have to stop
your current spending habits altogether in fact you should try to stick with the
same spending habits as your income rises and allow the spread to widen as
much as possible between your income and your expenses one of the most effective
ways to curb this terrible financial habit is by tracking your expenses i
already talked about this in habit number three but i will restate that
logging every penny that leaves your pocket whether that's on a piece of
paper in your phone on a spreadsheet will significantly reduce any risk you
have of compromising your wealth due to lifestyle creep habit number seven not
working on your monetizable skills we all have certain skills and knowledge
but sadly most people don't employ these assets to increase their income in short
people either have monetizable skills and don't opportunize them or simply
lack them in the first place for those who lack a monetizable skill it's likely
the result of not putting in the effort they would rather watch netflix for 4
hours a night then learn a new skill that could change their financial future
forever alternatively those who have valuable skills often have no idea how
to leverage them to make more money and as a result remain stagnant in their
wealth journeys regardless of the position you're in presently aim to turn
your skills into dollars find a skill you like market that skill and close
clients then once you've mastered this process rinse and repeat by doing this i
promise you 2022 will be your year hey it looks like youtube thinks this next
video is the one that will change your financial life forever give it a watch
and let's see if they're right