15 Money Truths Your Successful Friends Won’t Tell You
15 Money Truths Your Successful Friends Won’t Tell You
Dan Ketchum Fri, Jun 16, 2023,
Are you tired of working the same job you've sworn to quit countless times? You might be stuck in a rut -- and your more successful friends have noticed. You might envy their Saturday morning hikes and large retirement accounts, but it might simply be a result of not approaching problems or opportunities like they do.
If you're wondering what your successful friends are thinking about the way you manage work and money, take a seat because here is what they're not telling you.
You Need To Budget
You know that friend you're always hitting up for money? Well, that friend thinks you'd really benefit from a budget. Fortunately, making one just takes a little commitment.
"Find an app or system that works well for you, such as Mint, You Need A Budget or just an Excel spreadsheet," said Kate Holmes, a certified financial planner and Belmore Financial founder. "Import the last few months of all checking, debit and credit card transactions, and see where things are at. You'll likely be surprised by some of the category totals."
Holmes encourages you to consider how much happiness each budget item brings you, as means of tracking down unnecessary expenses. Here's a breakdown she recommends:
50% of your take-home pay for food, housing and necessities
30% for discretionary spending
20% for paying off debt and building savings
You Don't Save Enough
Bad news for those dreaming of retirement: Most of us won't be retiring in style if we rely solely on Social Security benefits. In 2023, the average monthly Social Security check is just $1,751 for retirees. So, what can you do to prevent tarnished golden years?
Utilize your workplace retirement plan and take advantage of your employer's matching program, said consumer finance expert Kevin Gallegos, vice president of Phoenix operations for Freedom Financial Network. Gallegos recommends saving 10% to 15% of your gross pay for retirement. If you can't swing that, just start with what's manageable for you.
You Have Too Much Credit Card Debt
The financially savvy see credit cards as a convenience, not a debit account. A GOBankingRates survey found that 50% of Americans have credit card debt. If you carry a high balance month to month and have high interest rates, you're paying a premium for the same purchases your debt-free friends make.
Dodge debt and avoid using credit cards except in emergencies. "Few, if any, investments will return as much," Gallegos said. "Having no credit card debt provides a financial cushion itself." If you're having trouble doing this, you can consider some ways to avoid or get out of credit card debt.
You Don't Invest
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