4 common habits keeping you from saving money. Some common habits can keep you poor. You may have a consistent revenue but still struggle with your finances.
You cannot manage your finances properly. Sometimes we cannot put the finger on the culprit responsible for holding us back, bad money habits. It could emerge that we are responsible, or our practices are responsible for keeping us in poverty or poor finances.
Those habits are often so profoundly grounded that we are unaware of them; we do them automatically.
Having lousy money habits can tremendously negatively affect your life. Identifying and knowing those bad habits will significantly improve your finances and life.
Here are a few practices you may have that keep you poor.
1# YOU ARE NOT ON TOP OF YOUR FINANCES
Many people do not bother to properly manage their finances. Providing that they have income coming in, they will keep spending. They have no idea of what they really spend.
They do not take inventory of their spending. And this is a common habit that can keep you poor. This is a big mistake to avoid.
You should know exactly how much you are getting into your account and how much you are getting off. That way, you can prevent overspending and avoid paying unnecessary charges such as overdrafts and late payment fees.
2# YOU DO NOT PAY YOURSELF FIRST
Another bad habit to avoid is not paying yourself first. Many people who want to save money and be financially independent overlook this habit. They tend to save the money they have left after paying for everything else, such as bills, rent, treating themselves…and most of the time, there is money left to be saved.
They should be doing the opposite, meaning directly keep a portion of what they earn; the amount will depend on you, usually 10%, in a saving account, then spend the rest on bills.
This will prevent your expenses from expanding, to only stick to what you have.
3# YOU ARE KEEPING UP WITH FRIENDS WHO HAVE EXPENSIVE TASTE OR FOLLOWING BEAUTY GURUS
You may have friends who always want to go out to spend on expensive restaurants, shopping rant, travelling with them. They usually have more considerable means than you.
In this case, you must be honest and tell them the truth about your finances because keeping up with them will put you in great financial difficulties. Not only will you not be able to keep up, but you will end up in debt. People have different tastes as well as very different budgets.
So, trying to keep up with everyone around you will leave you broke and in debt. The same goes for following beauty gurus on social media, who continually advertise new products and services.
Hence, you end up with things you do not need, all for the sake of being trendy.
4# YOU ARE NOT PLANNING ENOUGH, AND YOU BECOME COMFORTABLE WITH DEBT
Planning ahead can help you avoid many charges, such as late payment fees and overdraft charges…. Waiting to do something at the last minute is often costly.
Not planning ahead means being unprepared or unprepared most of the time. This happens when you overuse your credit card; you do not precisely know how much you spend. Be careful when you put all your payment through your credit cards.
You end up paying more most of the time, more interest charges. If you make your payment through a credit card, have the cash and always put back what you spend.
The money you own on your credit card is debt, do not be comfortable with debt; avoid it whenever possible.
Common habits that can keep you poor. Certain practices, such as those cited above, can unknowingly keep you poor.
Some others include paying full price for items and being a die-hard trend follower. Getting rid of those habits will undoubtedly improve your financial circumstances.
Can you think of some other habits that can keep you poor? Would you please share your ideas in the comment box below?