The sad truth is that few of us are taught in our youth to manage our finances effectively; most of us don’t even know how to balance a checkbook when we reach the age of adulthood.  And yet, we earn and paycheck, open accounts, take out loans, and apply for credit cards as though we have some idea of what we’re doing.  Most of us don’t start out with a budget and we have only a nebulous plan for a future in which we enjoy extreme wealth (we’ll figure out the details later!).  However, the formation of bad financial habits can lead you straight to the poorhouse with loads of debt, no savings for the future, and a credit score that’s in the toilet.  So if you’re looking to break the cycle and ensure that your financial future is secure, here are a few bad habits you’ll want to curb.

1.  Spending on credit.  Everyone knows that you shouldn’t get in over your head with credit card debt, but you might not realize all of the ways that you can get drawn into needless spending (for example, with online accounts that store your info and require only a click to make purchases).  Even with only one card you might have problems.  Your best bet is to keep a card for emergencies but put it in your safe at home or a safe deposit box at the bank.  It’s there if you really need it, but it’s hard enough to get at that you shouldn’t use it often (and certainly not for frivolous purchases).

2.  Carrying lots of cash.  Have you noticed that when you have cash on you it tends to burn a hole in your pocket?  This is because you know you’re not going to owe anything once the money leaves your hands.  Unlike a credit card charge, which shows up on the bill, you may spend money thoughtlessly simply because you can “afford it”.  However, if you’re burning through cash simply because you’re carrying it, then you should be thinking about how that money could be earning for you if you were to invest it, rather than helping the kid at Starbucks pay for college.

3.  Emotional spending.  This is a big, bad way to get in financial trouble.  Some people eat when they feel bad.  Others take it out on the punching bag at the gym.  But if your response to a fight with your spouse or a rough day at the office is to go shopping, you will soon find yourself in financial straits.  Instead, spend some of that money on a therapist to help you deal with your avoidance issues.

4.  Personal loans.  It can be tempting to give out personal loans to friends and family when you have the money to do so.  After all, they’d do the same for you, right?  Maybe they would and maybe they wouldn’t, but before you go giving away your disposable income to every family member that wants a handout, think about when (or if) you’re going to get that money back and whether or not you can really afford to loan it out when it should be in interest-bearing accounts, working for you.  Generosity is one thing, but continuing to loan money when you haven’t seen a penny come back is ill-advised.

5.  Foregoing the 401K.  Planning for your future starts here and if you donate to a 401K the money is pre-tax dollars that come directly out of your paycheck.  You won’t even notice the money is missing, so don’t neglect this basic financial necessity.

Emma Martin writes for Coupon Croc where you can find discount codes for the best in dining and entertainment. Checkout the Thomson discount code for your travel needs.

You have probably heard from several different sources that having multiple credit checks performed in a short period of time can damage your credit score, making it more difficult for you to secure the financing you need down the road.  These people likely can’t tell you how much your score will drop or for how long, though.  There are two reasons for this seeming inconsistency in information.  For one thing, the dip in your credit score will depend on just how many inquiries are posted and in what amount of time.  And secondly, only certain types of credit checks will count against you and potentially damage your credit.  Here’s the breakdown on how to manage credit checks effectively in order to reach your goals (without hurting your FICO score).

For starters, you need to know which types of credit checks can lead to problems and why.  If you are a student applying for a loan, or an adult with established credit looking to purchase a car or a home, you generally won’t see any change in your credit score, regardless of how much you shop around (and how many inquiries are made), at least not during the process of securing such a loan.  However, multiple requests for your credit report made by credit card companies could certainly have a negative impact on your credit rating.  But why?  Everyone is requesting the same information; why does it matter if the lender is a bank or a credit card company?

The difference lies in the intent.  If you’re looking to go to school or make a large purchase such as a house, the money you’re borrowing is sort of like an investment in the future.  With a college education, you can hopefully obtain gainful employment down the road, which will allow you to pay off the debt accrued in the pursuit of a degree.  And a house (or even a car) comes with built-in collateral that the bank can seize in lieu of payment should you fail to meet your financial obligations.  In each case there is a reasonable expectation of repayment of loans.  But people who are applying for multiple credit cards in a short period of time are certain to raise red flags.

If you’re shopping around for a credit card, you might think that applying for many to find the lowest rate is the sensible way to go.  But keep in mind that the entities that compile credit reports don’t know what you’re up to.  They may see a bunch of inquiries from credit card companies and operate under the assumption that you are going to take them all, potentially racking up multiple thousands of dollars in debt that you cannot possibly hope to pay off.  In short, you suddenly represent a much higher risk to lenders.

But what is the actual impact to your credit score from such activity?  It varies from person to person, depending on your credit history and the number of inquiries made (along with the time frame in which they arrive).  As a general rule, you can estimate a loss of five points per inquiry if you want to be on the safe side.  How long this drop is in effect depends entirely on you.  If you end up accepting a credit card, you spend responsibly, and pay your bills on time, your credit will rebound quickly (within a few months).  And you can probably guess what happens if you go the other way.

Emma Martin writes for Granite Card where you can find articles on all things credit related, including bad credit credit cards with high interest rates and hidden fees.

Most people these days are aware that making good financial decisions for the future requires them to spend wisely and have more than just a 401K for the next 30 years.  Many know that if you want to make your money work for you, it has to be invested in a diverse portfolio and spread around.  Some people even understand what these vague statements mean in terms of real world scenarios and implementations.  But the majority of adults seem to be stumbling through their financial lives as though trapped in the morass of a pea-soup fog.  However, many of us would like to know more about the many ways in which money can be made to increase over time.  If you are one of the people looking for some useful advice in terms of money management, as well as a collective of individuals that share a similar interest, then perhaps you should join a club that specializes in finance and investment.  Here are just a few reasons why seeking such a group online could really be to your benefit.

1.   Learn the lingo.  How do you know what you’re supposed to do with your money when terms like NYSE, portfolio, and even budget leave you scratching your head?  Even if you know what they mean, you might not be sure about real world applications.  But if you don’t have the foggiest notion about what your stock broker is saying then you can’t really take an active role in planning your financial future.  In this respect, a club provides a whole group of people with a wide range of knowledge and no ulterior motives in answering your questions.

2.   Pick up the basics.  How many of you have a checking account?  Probably everyone.  How many have a savings account?  Still quite a few.  How many have a 401K?  Maybe a few less.  What about a Roth IRA?  Or an investment portfolio?  Not too many.  You’ve probably heard horror stories about those who have lost their shirt with investments because they didn’t know what the heck they were doing and/or they entrusted their life savings to a third party (like a brokerage firm) that couldn’t care less about the paltry purse that nonetheless held everything they had.  You don’t want to be that person.  But that doesn’t mean you can’t learn the basics and get started with better methods of saving and investing.

3.   Money management skills.  Did you know there are adults out there that were never taught to balance a checkbook, much less form a sound budget or invest wisely?  You can benefit from the experience of other members in this area, many of whom were likely in your shoes in the past (some fairly recently).

4.  Get tips.  Networking with a group that follows financial interests could benefit you in a variety of ways, but one of the best reasons to join up is to get information about new investments or stocks and bonds to avoid from people who know how to read the signs from the market.  You might even come across some great investment opportunities that would have otherwise eluded you.

5.  Group investing.  One of the advantages of being part of a club like this is that you may be able to invest as a group.  This will allow you to realize greater diversity in your ventures, benefit from the experience of more seasoned investors, and ultimately maximize your profits.

Emma Martin writes for The Guestlist Club where you can find info on China White, the hottest club in London.