financial discipline tips Archives - ROI TV https://roitv.com/tag/financial-discipline-tips/ Wed, 28 May 2025 11:35:13 +0000 en-US hourly 1 https://wordpress.org/?v=6.8.1 7 Wealth Destroyers Draining Your Wallet and What to Do About Them https://roitv.com/7-wealth-destroyers-draining-your-wallet-and-what-to-do-about-them/ Wed, 28 May 2025 11:30:48 +0000 https://roitv.com/?p=2921 Image from Minority Mindset

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In today’s economy, building wealth is more than just earning a paycheck and investing in a 401(k). It’s also about avoiding the silent traps that chip away at your financial foundation. From emotional decisions to outdated habits, here are seven wealth killers that could be draining your wallet and what you can do to fight back.

1. Car Insurance Inflation

Car insurance rates have quietly surged, with some companies charging significantly more for the same coverage. If you haven’t shopped around lately, you could be overpaying by 15% or more each month. Take 15 minutes to compare quotes. The savings could add up to hundreds annually money that belongs in your savings, not your premiums.

2. Not Earning Interest on Savings

In a time when inflation is hovering around 2.3%, letting your savings sit in a 0.01% interest account is like watching your money lose value. High-yield savings accounts now offer interest rates between 4% and 4.12%, helping you outpace inflation and grow your emergency fund or short-term savings faster.

3. Emotional Investing

The 2025 market has been a rollercoaster, and many investors have jumped in and out at the wrong times. Emotional investing—buying high and selling low—can erode your portfolio. Instead, take the long view. Downturns often present buying opportunities, but only if you can keep emotions out of it.

4. Pandemic-Era Spending Habits

Stimulus checks may be long gone, but many people are still spending like it’s 2020. Luxury goods, impulse purchases, and inflated subscriptions are becoming the norm again even as student loans resume and credit card balances hit all-time highs. Reevaluate your budget to reflect today’s financial reality.

5. Gambling and Sports Betting

With the explosion of apps like FanDuel and DraftKings, betting has become a daily habit for millions. But it’s not an investment strategy. The house always wins, and what starts as harmless fun can quickly lead to drained accounts. Set firm limits or avoid it altogether if you’re trying to build lasting wealth.

6. Paying for Unaffordable Conveniences

Food delivery apps make life easier but at what cost? Between service fees, delivery charges, and tips, a $12 meal can quickly turn into a $25 expense. Even more alarming, some consumers are now financing takeout through buy-now-pay-later apps. Skip the delivery and cook at home if your budget is tight.

7. Not Investing in Personal Growth

Investing in yourself is one of the smartest financial decisions you can make. Start with free resources like YouTube or podcasts. Move on to books, courses, and certifications that build real skills. Unlike market swings, personal growth always pays dividends increased income, better decisions, and long-term wealth potential.

Final Thoughts

Building wealth isn’t just about making the right investments—it’s also about avoiding the wrong habits. From car insurance hikes to emotional investing, these seven wealth killers are silently draining the accounts of even the most well-intentioned savers. Stay vigilant, stay informed, and stay committed to smart financial choices. Your future self will thank you.

Jaspreet Singh is not a licensed financial advisor. He is a licensed attorney, but he is not providing you with legal advice in this article. This article, the topics discussed, and ideas presented are Jaspreet’s opinions and presented for entertainment purposes only. The information presented should not be construed as financial or legal advice. Always do your own due diligence

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How to Think and Act Like a Financial Pro: Smart Habits for Wealth Building https://roitv.com/how-to-think-and-act-like-a-financial-pro-smart-habits-for-wealth-building/ Wed, 30 Apr 2025 13:16:03 +0000 https://roitv.com/?p=2607 Image from The Truth About Money

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If you’ve ever felt overwhelmed by financial decisions—or frustrated that your money isn’t doing more for you—you’re not alone. Financial pros like Ric Edelman and Maria Bartiromo have seen it all, and they’ve boiled down decades of insight into simple principles you can use today.

Here are eight key money takeaways from their recent discussion that can help you build wealth more efficiently, avoid common traps, and make confident decisions about your financial future.


1. Stop Letting Mental Accounting Sabotage Your Finances

Ever felt better keeping money in savings even though you’re carrying credit card debt? That’s mental accounting—and it can cost you.

Ric Edelman gave a great example:

  • Keeping $10,000 in the bank at 1% interest
  • While paying 18% on a $10,000 credit card balance
  • Net loss: 17%, just from choosing the “wrong” bucket

He also told the story of a Las Vegas gambler who justified an $8.4 million loss by saying, “I only lost five dollars.” This kind of thinking leads to irrational financial decisions.

Smarter move:

  • Treat all money as part of one financial picture
  • Pay off high-interest debt before saving in low-return accounts
  • Avoid emotional thinking around money

2. Start with Clear Retirement Goals

Carol from Baltimore asked how to know if she’s on track for retirement. Ric’s answer:
Start with two questions:

  • When do you want to retire?
  • How much do you want to spend (in today’s dollars)?

Then work backward:

  • Add up your current assets
  • Calculate your monthly savings and expected returns
  • Use that to see if your goals are realistic

If not? Adjust your timeline or your spending expectations—not your dreams.


3. Rethink Saving for Your Grandkids

Most people think about helping their grandchildren with college—but Ric suggested going even bigger:

  • Invest $5,000 in a Roth or IRA-like vehicle (if available)
  • Leave it untouched for 65 years
  • That money could grow into hundreds of thousands—maybe more

Of course, the traditional route still works:

  • 529 College Savings Plans allow tax-free growth for tuition, room and board, and more
  • You control the account and can switch beneficiaries if needed

4. Avoid Overpriced Mortgage Life Insurance

Nikki from Florida wanted to protect her mortgage with life insurance. Ric explained that mortgage protection policies are usually a bad deal:

  • The death benefit shrinks as the mortgage is paid down
  • They cost more and offer less flexibility

Instead, a regular term life insurance policy is cheaper and more useful. It allows your loved ones to use the payout however they need—not just toward the house.

Tip: Always shop around and talk to a fee-only advisor before buying insurance.


5. Choose ETFs Over Mutual Funds

Why? Two words: lower fees.

Ric laid it out clearly:

  • Average ETF fee: 0.3%
  • Average mutual fund fee: 3.0%
  • Difference: 2.7% per year—that’s money out of your pocket

ETFs also come with better tax treatment and transparency. They’re built similarly to mutual funds, but more efficient. For long-term investors, that’s a big win.


6. Make Saving a Non-Negotiable Habit

Maria Bartiromo didn’t mince words:
“The #1 mistake most people make is not saving enough.”

Her advice?

  • Pay yourself first—every paycheck
  • Start small if you have to, but be consistent
  • Build a reserve so you’re ready for the unexpected

Savings isn’t just about wealth—it’s about peace of mind.


7. Ignore the Noise, Focus on Fundamentals

With so much financial news 24/7, it’s easy to get distracted by hype, predictions, or panic.

Maria says to ignore the noise and focus on:

  • Company earnings and revenue
  • Management’s stake and track record
  • The value of the product or service

Meanwhile, Ric reminded us that the 1980s had too little financial info—and today we may have too much. The skill now is knowing what not to listen to.


8. You Can Compete with Wall Street—But You Have to Work at It

The internet and new platforms have empowered individual investors like never before. But Maria made it clear:
Success still takes discipline.

That means:

  • Doing your homework
  • Building a long-term strategy
  • Avoiding get-rich-quick distractions

If you’re willing to invest the time, you can absolutely invest like a pro.


Final Thoughts: Think Long, Act Smart

You don’t need to be a financial expert to make smart money moves—but understanding your mindset, your goals, and your tools can make all the difference.

From skipping overpriced insurance to maximizing low-fee investments and saving early, the path to financial independence is paved with clarity and consistency.

Start now—and keep learning along the way.

All information provided is for educational purposes only and does not constitute investment, legal or tax advice; an offer to buy or sell any security or insurance product; or an endorsement of any third party or such third party’s views. The information contained herein has been obtained from sources we believe to be reliable but is not guaranteed as to its accuracy or completeness. Whenever there are hyperlinks to third-party content, this information is intended to provide additional perspective and should not be construed as an endorsement of any services, products, guidance, individuals or points of view outside Edelman Financial Engines. All examples are hypothetical and for illustrative purposes only. Please contact us for more complete information based on your personal circumstances and to obtain personal individual investment advice.

Neither Edelman Financial Engines nor its affiliates offer tax or legal advice. Interested parties are strongly encouraged to seek advice from qualified tax and/or legal experts regarding the best options for your particular circumstances.

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7 Money Habits That Can Hurt Your Financial Freedom and What to Do Instead https://roitv.com/7-money-habits-that-can-hurt-your-financial-freedom-and-what-to-do-instead/ Tue, 29 Apr 2025 13:24:43 +0000 https://roitv.com/?p=2601 Image from Minority Mindset

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Most people don’t lose financial freedom because of one big mistake—they lose it through a series of small, everyday habits that quietly chip away at their wealth.

If you’re serious about building long-term financial security, it’s not just about earning more—it’s about keeping and growing what you have. Here are seven money habits you’ll want to break—and smarter strategies you can use to move closer to financial independence.


1. Overpaying Taxes and Waiting for a Refund

Tax refund season feels like a celebration for many Americans, but here’s the truth: if you’re getting a big refund, you’ve been giving the government a 0% interest loan all year.

Example:

  • Income: $60,000
  • Taxes withheld: $17,000
  • Taxes owed: $14,000
  • Refund: $3,000

That $3,000 could have been earning interest in a high-yield savings account instead of sitting in Uncle Sam’s pocket.

Smarter strategy:


2. Confusing “Can Afford” With “Can Buy”

Just because you can swipe a card doesn’t mean you can truly afford something.

A good rule:
If you can’t afford to buy five of it without financing, you probably shouldn’t buy one.

Financing luxury goods like a $1,000 Gucci scarf—or anything that doesn’t generate income—is a fast track to financial instability.

Smarter strategy:

  • Focus on building assets, not collecting status symbols.
  • Only finance appreciating assets (like a house), not depreciating ones.

3. Financing Cars Instead of Investing

The average new car payment in America today? $742 per month—and that doesn’t even include gas, insurance, or maintenance.

Instead of financing a $60,000 BMW, imagine buying a reliable used Toyota for cash—and investing that $600 difference every month.

At a 10% annual return, $600/month grows to:

  • $775,000 in 25 years
  • $2.1 million in 35 years

Smarter strategy:

  • Drive a modest car early.
  • Let compounding work its magic over decades.
  • Buy your dream car later—in cash.

4. Waiting Too Long to Start Investing

If you start investing just $100 a month at age 21 at a 10% return, you could have over $1 million by age 67.

Wait until age 27? That drops to $580,000.
Wait until age 35? Just $250,000.

Smarter strategy:

  • Start investing early—even small amounts.
  • Let time and compound growth do the heavy lifting.

5. Focusing on What Others Make Instead of What You Gain

One of the biggest mindset traps is worrying about someone else’s cut instead of focusing on your own value.

Example:
A couple passed on buying their dream home because they were frustrated that the agent’s commission seemed high—losing the opportunity to live where they wanted for decades.

Smarter strategy:

  • Focus on your benefits, not what someone else earns.
  • A great opportunity for you is still a great opportunity, no matter what others gain.

6. Hesitating to Invest in Yourself

People will spend hundreds or thousands on vacations or luxury goods but balk at buying a $20 book or a $200 course.

Investments in personal growth—books, classes, workshops—can change your income, your mindset, and your future.

Smarter strategy:

  • Budget for ongoing education.
  • Apply what you learn immediately.
  • Grow your skills as aggressively as you grow your savings.

7. Expanding Expenses With Income (Instead of Saving More)

Too many people raise their expenses every time they get a raise—new cars, bigger homes, fancier vacations.

Instead, follow the 75-15-10 rule:

  • 75% of income for living expenses
  • 15% for investing
  • 10% for saving

No matter how much your income grows, sticking to this rule ensures you’re always building your financial future.

Smarter strategy:

  • Cap your lifestyle inflation.
  • Let raises boost your investments—not just your lifestyle.

Final Thoughts: Wealth is Built on Good Habits

You don’t need to be perfect with money—you just need to consistently make smarter choices than you did yesterday.

Break these seven common habits.
Start investing early.
Focus on value, not appearances.
And watch how steadily financial freedom becomes your reality.

Jaspreet Singh is not a licensed financial advisor. He is a licensed attorney, but he is not providing you with legal advice in this article. This article, the topics discussed, and ideas presented are Jaspreet’s opinions and presented for entertainment purposes only. The information presented should not be construed as financial or legal advice. Always do your own due diligence.

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