Michela Allocca, an American financial analyst and author of the book “Own Your Money”, shares five money habits to avoid, which helped her accumulate a net worth of more than $500,000 (12 billion VND) at the age of 28:

"Hunting" for discounted items

According to Allocca, while most people think of bargain hunting as a way to save money, they’re actually spending money on things they wouldn’t normally buy. Buying something you don’t need at 50% off is still spending money you didn’t intend to spend in the first place.

Allocca still buys the things she needs when they're on sale, but avoids unnecessary spending on anything else.

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Smart spending habits help young girls master their finances from a very early age.

Impulsive spending

Many people spend impulsively, which means deciding to buy something quickly, without planning.

Allocca tries to avoid impulse purchases altogether. Instead, whenever she feels like buying something, she adds it to her shopping list, which prevents her from buying something on the spot.

Allocca recommends giving yourself four or five days to consider a purchase. After a few days, you may forget about it, so you'll save money.

Use traditional savings packages

Allocca prefers higher-interest savings plans. Allocca says all of her savings are in high-interest plans.

No investment

When you are young, you may not care about investing. Most of your money is spent on leisure activities. This is a mistake when you do not know how to take advantage of time.

By the time you start investing, someone else is already sitting there making the profits. So invest in anything that has potential, even if it initially offers very little return.

Using a credit card

Allocca doesn't buy anything beyond his means, so he doesn't use credit cards.

She makes most of her purchases using a travel rewards credit card. That way, she collects reward points that can be used to buy things like flights or hotels.

(According to BYB)