Which of the following is NOT a wealth building habit?

Prepare for the Utah Financial Literacy State Test. Dive into interactive questions, complete with explanations and tips, to ensure your success. Boost your financial skills and ace the exam!

Spending excessively on leisure activities is not a wealth-building habit because it can undermine financial stability and hinder the ability to save and invest for the future. Wealth-building habits focus on managing resources wisely, which includes living within your means and making intentional financial choices that promote long-term growth.

Contrarily, living on less than you make, consistently seeking to increase your income, and planning spending while adhering to a budget are all habits that contribute positively to building wealth. Living on less than you earn allows for savings and investments. Increasing your income provides more opportunity to save and grow your wealth. Budgeting helps manage expenses effectively, ensuring that funds are allocated toward savings and investments rather than frivolous spending. Hence, excessive spending on leisure compromises financial goals and reduces the capacity to accumulate wealth.

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