Discover the money habits of financially healthy people and turn your finances around.

While there are a few very lucky people who strike it rich through things like winning the lottery or becoming famous, must financially successful people get there by spending wisely, investing well and saving. It might sound boring, but good money habits can help you build financial stability. Here are some things you shouldn’t waste your time or money on.

1. Impulse Buying

People who are financially healthy typically don’t waste money on impulse purchases. Successful people like to plan, and that can apply to how they spend as well. Don’t let store sales or promotions persuade you to buy items you don’t need. Go to the store with a shopping list and stick to it. Use promo codes and coupons on items you need.

2. High-End Brands

While some wealthy people do enjoy clothing and accessories from high-end brands, many diversify their wardrobe with items from all types of brands. Some wealthy people will invest in designer handbags for example, because they actually have good resale value. Some used Channel and Hermes handbags can actually increase in value, and they retail for the same cost or higher than their original cost. On the other hand, items like denim don’t need to be high-end. They don’t have good resale value, and low-end denim can wear just as well. Don’t waste your money on high-end items unless it’s a special piece or something that will grow in value.

3. Bad Real Estate

There are ways to make money on real estate, but there’s no guarantee that a home’s value will appreciate. Flipping homes can be a dangerous game to play. There’s a whole article on how you won’t get rich flipping homes by the Washington Post. The housing market fluctuates, and you can get stuck in a bad market. One of the better ways to make money on real estate is to purchase a property with multiple units or build additional units on your property. You can live in one unit while renting out the others. Here are some tips for buying your first rental property.

Summary

Many wealthy people didn’t get there by winning the lottery; they made smart money decisions over time. They avoid impulse buying and stick to a budget. They might invest in high-end pieces, but they diversify their wardrobe. They do their research when investing in properties and earn passive income through buying and renting out property.

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