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Most people spend more than they earn, and it’s no wonder then that the total U.S. consumer debt has hit $14.3 trillion. Poor spending habits are a major factor in this spiraling debt situation. On the other hand, people who are good with money have a more comfortable life because they can get by with whatever they have. They maintain a budget focusing on long-term objectives and a frugal lifestyle.
To improve your spending habits, discover some of the things people who are good with money prioritize.
A home is the greatest investment you can make in your life. Owning a home is at the core of the American Dream. The problem is that homes are not cheap. According to the National Association of REALTORS® (NAR), the average home price as of May 2020 was $284,600.
Everyone is after that dream home in the ideal location, but this pushes up the total cost. Inevitably, many homebuyers sink into debt trying to live their dream. However, people who are good with money go for affordable homes that suit their needs.
You have multiple affordable options such as newly constructed affordable housing, cooperative housing, renovated existing houses and others. You also have the option of buying affordable housing through Housing and Urban Development (HUD), Low-Income Housing Tax Credit (LIHTC), and Fair Housing, among others.
A car is essential in modern life. A new one costs more than $37,000 while a used car in good condition comes to around $20,000. Used cars suffer less depreciation, lower insurance rates, and there are fewer hidden fees in the pricing. You can save a lot of money with a used car, and it’s an option good spenders go for.
Rather than purchasing materials items, great spenders achieve fulfillment from making investments. Such investments make you more money, and you have a diverse range of options such as stock trading, real estate, mutual trusts, and more.
For the suave spender, education is not an expense but rather an investment for life. Education equips you with tools to live a more fulfilling life. It is the best gift for your family as it equips them for life.
Your health is crucial and this is why people who spend wisely always invest in comprehensive health insurance. It’s worrying that the number of Americans without health insurance has risen over the last few years. Health insurance is a safety net to ensure you get the best care without ruining your family’s finances.
Personal finance is all about good money habits. Good spenders prioritize purchases that build wealth. Their lifestyles are characterized by valuable purchases and living within their means. Everyone can develop these good money skills by continually learning new ideas to save on every aspect of life.