Have you noticed that your income easily comes and goes? There are some bad financial habits that we have acquired through the years that are preventing us from having a successful life. Just like any other bad habit, it can bring you down. These poor financial decisions can have damaging effects on your life especially when you get older. It can be a great source of frustration, causing you stress, anxiety, and even depression. These bad financial habits can lead to less financial security, lack of savings, out-of-control spending, and the likelihood of going into debt or financial ruin. It is time to reexamine your financial habits and retain only the ones that help you grow financially. Here is about breaking your terrible financial habits.
Budgeting without preparation
If you don’t have any idea how much you spent on groceries this year or on those spur of the moment shopping sprees, it is time to break this habit. Not keeping track of your necessary and unnecessary purchases would always make you feel cash-strapped even if you’re earning more than enough. To help you break this habit and manage your money properly, you can download a budgeting or financial management app. This will teach you how to keep your finances in order. This can also be done manually with envelope budgeting.
Too lazy to do your own food shopping
Food delivery services are so convenient that it’s easy to overlook the fact that your delivery fees are piling up. If you rely on these services on a daily basis, you’re spending a lot of money. Break this habit by buying your ingredients and cooking them at home. Cooking is a valuable life skill that you can learn as well. You will be surprised at how much you saved at the end of the month.
Addicted to online shopping
There are so many sales offered online which you may genuinely think you are saving more money by purchasing items on sale. However, the simple truth is that you still spent money, most probably on items you didn’t even need. To break this habit, do the following: Don’t feel obligated to purchase every time a sale occurs. Disconnecting your credit card from shopping websites will also make the checkout process more complicated.
The spending comes before saving
You have definitely heard of the concept of paying yourself first, but do you use it?
The pandemic has shown us all how easily we can risk losing our livelihood security and health, so having an emergency fund and savings in place is not just an option it is a must for surviving and thriving. To break this habit, make a habit of transferring a set amount from your paycheck to a separate account where you keep your savings. Before you spend any money, including your bills, do this first.
Spending more money than you make
If you spend more money than you make, you will end up amassing a mountain of debt and no extra cash to pay it off. You may even be pressured to take out a loan or take loans from someone else to stay afloat. To break this habit, do the following: Spend only what you can afford. Don’t be swayed into taking out a loan simply because the low-interest rates are appealing.
Leaving it until the last minute to pay your bills
If you regularly pay late fees since you failed to pay your mobile plan, paying your bills on time can save you a lot of money. Better yet, if you have the means, pay them when they arrive. Do the following to break this habit: To automate your payments, use your bank or a digital wallet. You can also set a reminder on your calendar to pay your bills so you don’t forget. Make it a habit to prioritize paying your bills on time or early as some service companies give discounts to this kind of client.
Change these bad financial habits with good ones. Adopt the changes one at a time so you will not be overwhelmed and give up. Incorporate the change into your routine and see if it fits your lifestyle. Meanwhile, don’t forget to keep on saving.
In case you are in need of an emergency source of funds, you can read a Metrobank online banking guide. Robocash can assist you financially as long as you are a Filipino citizen aged 21-70 years old and employed or in a certain profession.