5 Bad Financial Habits You Need to Get Off ASAP
Bad financial habits to get rid of
During our daily life, we practice many financial habits that become a routine that prevents us from realizing that these habits may sometimes lead to our bankruptcy or the loss of a lot of money unnecessarily.
These bad financial habits and the lack of any kind of financial management of the monthly income may lead to wasting a lot of money, and it will also lead to the absence of a financial surplus that you can save or invest later, and may even lead to the accumulation of debts.
If you suffer from lack of control over your financial affairs or your monthly income, or you suffer from the loss and waste of a large part of money without realizing where you spent it, this article will help you increase financial awareness about these matters and will also help you to identify bad financial habits and how to avoid them and get rid Ones as quickly as possible.
1. Buying with passionate motivation
This means that you are buying in an emotional push towards the product. For example, you might shop for a specific product to see that there are large discounts on another product, then you will hurry to buy the other product even though you do not need it urgently.
For example, your friends may be tempted to buy a T-shirt a lot because it fits the fashion of the day, or you may even be tempted by the way it is displayed, then you will also buy it without thinking rationally whether you really need it or not, or if you have enough money to pay for it or not.
To reduce spending in this emotional way, you have to be assertive with yourself and make them wait a certain time until you make the purchase. For example, you may limit the number of items to purchase each month, and you must commit yourself not to purchasing any additional items. This will make you think more about your purchasing decisions, and it will also make you think about products that you don’t need badly.
2. Lack of planning and setting a monthly income management budget
Not having a clear budget for your expenses and revenues will make you lose the compass that you must rely on when spending your monthly income.
Establishing a budget allows you to determine how much money you are getting as monthly income and how to spend it in a balanced and reasonable manner. It also helps you take the necessary measures to save more money and avoid drowning in debt every month, and even save an amount of money on a monthly basis that will help you invest it later.
If you think that sticking to a monthly budget is a cumbersome thing, you can use some programs or applications that help you manage your budget and your expenses automatically, such as Mint. All you have to do in this case is to open the program every day to ensure that you are on the right path or to discover the additional expenses that you make and make the necessary adjustments as needed.
3. Reliance on credit cards
The credit card is one of the most important reasons that motivate you to buy irrationally and may cause you to bankrupt and overwhelm you with debt, if you pay an amount greater than the balance that you can charge with it every month.
Using credit cards causes you to use the money as if it were free money, so you need to be careful and reasonable in using it.
4. The tendency to exaggerate comfort and luxury
We all strive to live in a kind of luxury and comfort, but too much reliance on those things with limited income will lead to the loss of a lot of money that could have been invested in a successful project.
Laziness may cost us a lot and therefore we have to avoid these irrational expenses, except in case of necessity or speed.
You have to stop eating junk food every day, you also have to stop the daily buying habits that can be saved, such as buying expensive coffee on the way to work every morning, where you can replace it by preparing coffee at home. All of this can help you avoid unnecessary waste.
5. Personal habits
It includes everyday personal habits like buying expensive clothes and appliances, and even other habits like eating out frequently or shopping without the need to buy. In addition to any habit that drives you to spend large sums of money that could have been saved and invested in one of the successful projects to earn more money from them later.
“If you buy what you don’t need, it will come time when you have to sell what you need,” says Warren Buffett. Removing these bad financial habits will make you financially stable, happier and wealthier.
We have presented to you, dear reader, 5 bad financial habits that may cause you to go bankrupt, and how to get rid of those bad financial habits, do not forget to share and publish it with others so that the benefit is spread to everyone.
Financial management Personal financial planning Financial awareness Bad financial habits
8 Money Habits That Keep You Poor (STOP SELF SABOTAGE)
Most of what we do with our money everyday is unconscious. The more aware you are of your money habits, the faster you can reach your financial goals. Without realizing it, you might be doing these 8 money habits that keep you poor. See if you recognize any of these bad money habits in yourself, and what money habits to break this year. These habits keep you poor, and in this video I share my best personal finance tips for breaking bad money habits and replacing them with GOOD money habits!
# 1 – Paying yourself last (1:00)
# 2 – Keeping up with friends that have expensive taste (3:07)
# 3 – Overusing your credit card because of points / rewards (5:12)
# 4 – Having disorganized finances (7:07)
# 5 – Getting too comfortable with debt (9:35)
# 6 – Paying extra due to lack of planning (11:26)
# 7 – Paying too much in taxes (12:40)
# 8 – Waiting too long to start investing (13:35)