If you want to get rich in 2018, try taking advice from those who have already done it. There are certain wealth-building habits that successful people swear by.
And it's just as important to avoid toxic behaviors that can derail your finances.
If you're looking to make major financial strides in 2018, start by ditching these costly habits.
There's more to late payments than simply paying a bills and loan. Missing payments can also lower your credit score, which affects your ability to borrow money for bigger purchases, like a home or car in the near future.
Never miss to pay a bill and loan again by setting up automatic payments online for fixed costs such as cable, internet, and insurance. For expenses that can't be paid online, such as rent, set up calendar reminders and pay them at the same time each month so it becomes routine.
2. Going without a savings goal
Money won't just appear. If you want to save more, you have to have a clear goal and then set a specific plan in order to achieve it.
Start by determining exactly what major purchases you hope will be in your future, like a home, car or education for your kids. Next, determine how much you need to save for them and for how long.
Finally, set up a recurring automatic transfer from your bank account to your savings account to ensure you'll stay consistent with your savings.
3. Spending as much as you earn, or more
If you're spending as much as, or more than, you're earning, you're living paycheck to paycheck, which can easily spiral into credit card debt and personal loan. That lifestyle makes it nearly impossible to build up significant savings.
The solution: Live below your means — not at or beyond.
4. Having no idea where your money is going
Whether it's calling an Uber, stopping by the bodega around the corner every morning or picking up a soda while waiting in the checkout line, it's all too easy to spend mindlessly.
Focus on taking a more mindful approach to spending in 2018. Try tracking your expenses to get a better idea of where you spend your money and where you can cut back.
5. Ignoring insurance
It's good to be optimistic, but you also have to be responsible and plan for the worst. Just one accident can wipe out your savings.
Do you have disability insurance? What about renter's insurance or homeowner's insurance?
If not, add it to your 2018 to-do list.
6. Impulse Purchasing
Impulse purchases are all about emotion. You see a sale you don’t want to miss, or an item you want to have immediately.
You jump to buy it before you think rationally about whether you really need it or can afford it.
To curb impulse spending, force yourself to wait a certain period (it could be a day or 30) before pulling the trigger on a purchase. It will give you time to think about your decision, and chances are you’ll realize you don’t need it after all.
7. Love of Convenience
Every once in a while, a convenience purchase can be a nice treat, or a necessary exception if you’re in a great hurry. But if you find yourself regularly making convenience purchases, you’re just being lazy. Convenience will cost you.
Stop getting fast food every day and learn to make a few basic meals in bulk that you can enjoy throughout the week. Stop buying a pricey latte on the way into work every morning and get up 5 minutes earlier to brew a cup at home. A little extra work on your part could wind up saving you big time.
8. Personal Vices
Yes, this includes traditional “vices” like drinking, smoking, and gambling. But it also includes less-obvious vices like eating out way too much or being a shopaholic. Basically, anything that tempts you to spend large amounts of money you know you shouldn’t be spending.
Quit these bad habits and your life, not just your wallet, will be happier for it.