Michela Allocca, an American financial analyst and author of the book “Own Your Money”, shares 5 money habits to avoid, thanks to which she accumulated a net worth of more than 500,000 USD (12 billion VND) at the age of 28:
"Hunting" for discounted items
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, according to Allocca. 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.
Impulsive spending
Many people spend impulsively, that is, deciding to buy something quickly, without planning.
Allocca tries to avoid impulse purchases altogether. Instead, when she feels like buying something, she adds it to her shopping list, which keeps her from buying something right away.
Allocca recommends taking four or five days to consider a purchase. After a few days, you may forget about the item, so you save money.
Use traditional savings packages
Allocca prefers high-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 little return.
Use 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 rewards points that can be used to buy things like flights or hotels.
(According to BYB)
Source
Comment (0)