There is more to increasing wealth than having a good job and a budget. Avoiding the pitfalls of some bad habits can also go a long way in helping you achieve your financial goals more quickly and easily.
- Having bad physical habits can do more than just harm your health. For instance, one study on people who smoke found that the net worth of heavy smokers was $8,300 less than non-smokers. Moderate smokers saw a $2,000 differential. The average effect of smoking on wealth was a 4 percent decrease for each year the person smoked, the approximate number spent each year on cigarettes. This study did not examine the negative effect smoking has on the cost of health insurance, and the extra time spent at the doctor. In other words, stop smoking and you will significantly improve your financial situation.
- Who your friends are and what their financial habits are can have a huge effect on a person’s own habits. If your friends spend their weekends drinking, eating at expensive restaurants, and shopping at the mall, there is a good chance that you will, too. Start hanging out with people that spend their time and money wisely, and some of that wisdom, and wealth-building habits, should rub-off on you.
- The way your parents raised you is a big influence on your own money habits. Unfortunately, you can’t pick your parents, but you can make a conscious choice to make different choices when it comes to your own money. Take a closer look. Did one or both of your parents gamble too much? Drink? Max out their credit cards? Don’t let their bad lifestyles effect you negatively. Rather use them as examples of what not to do, and you can go beyond them in your ability to build your own, and your family’s financial security.