Tired of being broke? Here are 9 bad money habits you need to eliminate today!
These changes will make a big difference!
There isn’t a speck of doubt that most of your future is riding on your financial worth. Therefore, having money is essential. But what’s more important is making sure you cherish that money, so you don’t drown in a sea of financial debt.
Do you often find yourself struggling to keep up with finances that matter most? Then indeed, over the years, you have picked up some old, counterproductive habits that are undermining your progress.
Today, we’ll be looking at some of the most common bad habits that keep people broke.
Here are the nine bad money habits you need to break today:
Not Tracking Expenses
Bad Money Habit # 1 is probably one of the most common because people don’t find it essential to take the time to sit down and track their expenses. Most individuals believe that it’s OK to keep spending whatever figure they want on food, entertainment, rent, and so on, without estimating how much they’re actually spending.
Tracking expenses helps you get a good idea of where your income is going and where it shouldn’t. This record enables you to make cuts if you need to, so you stay within your financial boundaries and prepare your budget for a brighter future.
Being afraid of investing is Bad Money Habit # 2. Investing your money in the right place can only help you multiply your savings. Moreover, the most significant reasons you should be investing your money are:
- You can retire one day.
- You never know what may happen in the future, so preparing now is essential.
- You can allow your money to grow over time.
The key to investing wisely is to jump right into it. Every experience will act as a lesson, and you will train yourself to invest better; you’ll never learn unless you make an attempt.
Throwing Money At Problems
Life is full of little hassles that are easily solvable with money. However, throwing money at these problems is not cheap and is Bad Habit # 3. For example, buying an expensive washing machine so you don’t have to do laundry yourself or installing a dishwasher because you’d rather watch TV after dinner and not wash dishes.
The solutions to all these problems are costly. Therefore, instead of investing in expensive machinery and service calls, it’s better to learn some skills and stay on top of life’s little chores. This way, you can end up saving up some cash to invest in your better future.
Bad Habit # 4 is not negotiating. If you find yourself settling for whatever life swings your way, you are not negotiating. Accepting whatever someone offers you is not the right answer.
Before you make a deal, you should analyze whether it is ideal or not. To study it, you should arm yourself with ample information. This information will help you compare certain aspects of the deal. And if it doesn’t seem right, get ready to negotiate, so you can get yourself an ideal offer that can help you regulate your finances better.
Shopping Too Much
Shopping too much is THE cardinal sin of personal finance and Bad Habit # 5. This one habit will have a trickle-down effect, causing significant problems in all areas of your finances. Shopping too much comes with credit, and credit comes with interest that traps you into debt. You continue spending more than you earn, creating a bigger, more vicious cycle.
If you are a shopper like this, you need to address this bad habit. Don’t even worry about anything else until you’re living within your means. You can do one thing here – cut your shopping expense and budget better.
Not Taking Free Money
Every day you come across plenty of deals, discounts, and offers; most of them are in plain sight and right in front of your face. However, you keep on spending full price for something when you can buy it in half.
Not taking free money is Bad Habit # 6. You should take the opportunity to save a bit of money. Clip coupons, acquire online deals, claim offers, participate in prizes, and more. Gear up to save big by taking advantage of a wide variety of items and services.
If you find yourself going about life with generic goals or not being able to find a specific purpose, you are stuck with Bad Habit # 7. You need to take responsibility for your future and take charge of your life by planning your goals.
While it might seem scary to make a plan, set your heart to specific things, and put yourself out there; know that it’s all in your hands. Outlining specific and SMART goals for every aspect of your life is one of the best ways to boost your income. Otherwise, you may find yourself drowning in bills, pending payments, never-ending costs, and more.
People almost always see something they like to a point where they “have to have it”. If you relate to this behavior, you are a prey of Bad Habit # 8, i.e., impulsive buying. It would be best if you realized that this spending behavior is more emotional than logical. The right thing to do is balance emotions and logic and restrain yourself.
Ask yourself questions like ‘What is it about that item or service that makes you want it?’ Or better yet, ‘why is it important to get it now rather than wait later?’ This way, you will start analyzing things, and your wallet will thank you.
Having a ‘desire to invest’ in high-end stuff and showing it off is not wrong, but ‘actually investing’ in it is Bad Habit # 9. Going on expensive vacations is toxic. It might seem worth-it when your vacation-Insta-post garners several comments and likes or when friends tell you that they envy you while you’re telling them vacay-stories.
However, reality soon kicks in when you realize that expensive vacationing has become a habit that flushes your savings down the drain. Do not be that person; be in control of yourself. Don’t spend money on vacations just to look cool or get the upper hand on someone only to soon face the abyss of a dark financial future. Invest in entertainment that is actually worth it.
What are your thoughts on this? Please share with us in the comment section below.