When it comes to finances, it is your habits that determine your fall or rise. Good ones can sustain you even in tough times. And bad ones will leave you broke without you noticing it.
Read this checklist and see if you have any of these bad habits. Don’t let yourself remain broke all your life.
- Impulsive shopping
Impulsive shopping at times creates huge holes in your wallet. This may appear to be a temporary trouble. But know that it is detrimental to your financial health in the long run. It prevents you from fulfilling your long-term financial goals.
The effective way to get out of the trouble is to know the reason. Some “impulse-shop” to stay with the trend. Others do it to take advantage of sales offers. They buy the things they don’t need hoping to use them in future. Still others are addicted to window shopping.
Have a reward mechanism in place. You need a treat at times. Prepare a budget and have a financial goal. Pledge to yourself that you will stay committed to them. This way, you will minimize and eliminate impulsive buying.
- Excessive spending for housing
Maintaining your home is no doubt the most expensive responsibility you should perform. Mortgage loans, utility bills, maintenance, insurance; the list is endless. This fact alone makes it a must to keep it as low as possible to maintain your financial health.
Find ways to lower your housing expenses. Aim for less than 30% of your monthly earning. Explore any number of success stories. You will learn one thing. The wealthy always keep their housing expenses at the lowest end.
Go for energy-efficient home appliances and accept expert recommendations in maintaining temperature. You should also try to manage your garden and lawn on your own. Opt for bundle packages when it comes to staying connected with the world. All these will help you minimize your spending on housing. And you will inch closer to being wealthier every year.
- Allowing others to detect your lifestyle
People learn certain spending habits from friends, family, teachers and well-wishers. They can have both negative and positive influence on your financial health. Check the lifestyles of your immediate social circle. Stay safe from those who spend beyond their means.
- Comparing yourself with your social circle
Comparison shopping is the best asset one can have. But comparing yourself with your social circle will lead to financial ailments.
Accept yourself as you are. Know your means and stop coveting the new car your friend recently bought. Instead, delve on the great things you have. Reward yourself for your own achievements. When doing so, you should find ways that don’t drain your budget.
- Be kind to yourself
Cutting your expenses definitely helps a lot. But the better alternative is to investing in yourself. Experiment with stock market. Attend paid courses available to advance the skills you already have. Free training is great. But you can never question its quality. Doing both will take your finances to the next level.
- Remaining unconcerned about your debts
Do you know how much you owe your lender/friends/relatives? Are you taking measures to repay it at the earliest? It is true that paying debts requires great sacrifices on your part. But the effort is worth taking. Living debt-free is a true gift that you owe to yourself.
- Being dependent on your credit card
Plastic money does help a lot. It comes handy when you need emergency cash. But millions make it a means of buying expensive items. Remember, credit cards increase your debts. And you will have to pay a higher interest rate.
Live within your means; your wallet will thank you forever!