Forbes’ Jan 31, 2016 article Financial Groundhog Day: Stop Repeating Bad Money Habits identifies three bad financial habits that are often repeated and suggests ways to avoid them in the future. The first habit it identifies is racking up credit card debt on impulse buys or daily purchases. The example given is of a daily purchase of $4.00 coffee, which with interest can amount to over $1700 per year. The second identified habit is ignoring monthly bills. Late payments on your credit card can increase your interest rate and your credit score could be reduced due to other late bills. The third habit is waiting too long to withdraw from tax-deferred savings. The article states that many people wait until after age 59.5 to withdraw money from their IRA hoping to be in a lower tax bracket but that the money will be taxed anyway and can always be reinvested.
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Financial Groundhog Day: Stop Repeating Bad Money Habits