One of the parameters of success is measured by one’s ability to plan financially, follow the plan, and save accordingly. In fact, a stable financial plan is one of the most important aspects of a sound, secure future.

However, for many people, this realization dawns on rather late. Moreover, they end up with certain habits as it would not show any adverse effects in the present, but continuing these would have damaging effects and ultimately risk your financial security.

Mentioned below are some pointers that, if pursued, could cause potential damage to your finances in the future.

Late payments

At some time or the other, you must have made a late payment. However, an important point to keep in mind is that these late payments impact your credit score. This, in turn, goes on to affect your ability to avail of any sort of a loan in the future. A great way to counter late payments would be to set up an autopay facility that allows you to pay your utility bills regularly every month.

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Paying only a minimum amount on your credit card balance

This might seem like a tempting idea since the minimum credit card balance payment is only about one to three percent. However, this is not the best idea when it comes to building long-term financial security. This is because the lower minimum balance you pay, the higher the interest you end up paying on the same. On the contrary, if you pay a higher monthly payment, then the credit card interest that compounds up, in the long run, would be a lot lesser.

Using ATM’s that are not part of your bank’s network

Every time you use an ATM that is not in your bank providers account, you end up paying a fee of about $4.57. Imagine using these ATM’s more than ten times a month. Thus, the total monthly fees amount to more than $40. Now imagine this amount doubling for the next 11 months! That is certainly a high amount and a bad money habit that you should certainly steer clear from!

Unnecessary expenses

Another bad money habit that you should stay away from under all costs would be mindless spending. This could range from buying the tenth pair of shoes that you know you would probably wear just twice a year to eating a lunch outside, just because you are too bored to go home and dish up something for yourself. Mindless spending presents itself in a number of tempting ways. However, this is only setting yourself up for financial disaster in the long run. Of course, indulging now and then is a good thing and can also be a stress buster but make sure you do not make a habit of it.

Not saving for the long run

Many people live for the day and spend all they have, without saving for a rainy day or building a retirement corpus. This is one of the worst financial mistakes to be making if you are looking to have a secure financial future. One way to reverse this mistake is by ensuring that each month you, by default, put away a certain amount of money straight into your retirement fund.

A few conscious decisions will ensure that you are on your way to financial stability sooner than you know. Moreover, whether you are young or old, it is truly never too late to reverse mistakes that could possibly damage or risk your financial security in the long run.

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