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This principle is extremely important when you want to manage your money properly. If you pay
everything you owe on time every single month, you will prevent yourself from developing a money
management problem.
I can’t tell you how many people pay significant late (and interest) charges just because they are too
lazy to mail their check on time. They have the money, but they don’t have the time and energy to
write the check, put it in an envelope, and mail it.
I think about it this way: If I worked for somebody and he or she didn’t pay me on time every month, I
would stop working for that person. Well then, you shouldn’t be surprised that if you don’t pay
people, they’ll stop providing services or charge you more for a late payment.
It’s not just about the money. It’s about respecting the people/companies to whom you owe the money.
It’s not fair to them if they have to beg you (i.e., send you late notices) for payment.
However, the money is important. It’s clear that paying your bills on time every month will save you
considerable amounts of money over time. Just in your enhanced credit rating alone (we’ll go through
that in another lesson), you will save thousands of dollars in your lifetime.
So, pay your bills on time every single month.

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