It is a new year now and it is time that you focus on kicking away your bad habits – financial one’s included. If you plan to accomplish more in the money department this year then here are 5 bad financial habits that you need to get rid off:
Making Impulsive Purchases
How many times have you found yourself on a binge shopping? Or perhaps a time when you saw something that had your tounge sticking out and your credit card swiped at the end? Impulsive purchases are a big no-no. They play havoc with your budget and usually its the credit card debt that really ends up making you poor. So make this the first bad financial habit to quit this year.
Spending Without Tracking
Only 60% of Americans actually track what they are spending. The number is the same or much worse in other countries. So many people simply hate to record where they spend their money. Some because they are lazy, while others because they are too scared to see the amount of money they might have spent needlessly. Either way, this is another fatal financial bad habit that needs to be quit.
Dipping into an emergency fund for non-emergencies
An “emergency” fund is called that for a reason. But so many of us make up any slightest of reasons to dip into the emergency cash. Wanting to buy that amazing new Android that is released in the market is not an “emergency”! Yet, many of us do that.
Okay, you can confess here. Everyone of us has delayed payments at one point or another. But some of us seem to have a chronic payment delaying disorder – we just can’t seem to pay on time. It is very important to kick this habit, because there is no way you will ever avoid payments. When you pay late, there is a needless delay fine which can be easily avoided. A solution to this is making use of internet facilities for as many payments as you can – to save your time and work.
Not saving a set amount automatically out of every paycheck
You know, it is a good habit to set aside a part of your earning into your saving account. There is a very slim chance that you will yourself take a part and go to deposit it in your bank. Ensure that a percentage of your paycheck money is automatically taken into your savings account each time it is issued.
A Final Note…
Living beyond your means is the number financial Achilles heels that people have. This is one of the reasons why so many people struggle financially. Which is why we see people who have steadily begun to earn more and more income along their career graph, still continue to find shortage of cash and almost nil savings. An uncomfortable situation for anyone.
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