Your financial health is important because it can determine how you’ll be able to live your life in the next few weeks, months, and even years.
If you frequently find yourself short in cash and with little savings in the bank (or none at all!), then you might want to take a look at how you’re spending your money.
Here are five money bad habits that you must be mindful of:
1. Giving in to impulse
A sale sign on a shop’s window is an invitation to go in and check out what’s on sale — but that doesn’t mean you have to buy it, especially if you don’t need it.
Online sales are tempting, but then again, do you really need them?
The problem with this is that you’re buying based on your emotions, which can put your finances down the drain.
Don’t let your emotions dictate your spending habits.
Try to control the impulse as much as you can, and you’ll be surprised at how much you can save.
2. Not having a budget in place
There’s no way to stay afloat financially when you don’t have a budget in place.
A budget will let you identify the amount of money you bring in and where the money goes.
This lets you do things to save more money and avoid getting short in cash every month.
So, if you don’t have a budget in place, you’ll end up spending your hard-earned money carelessly.
3. Overusing your credit cards
The best use for credit cards is for emergencies.
However, many people are using it to live beyond their means.
This is because credit cards make it easy for people to purchase items, especially expensive ones.
Unless you can pay off your balance in full every month, don’t overuse your credit cards.
Keep in mind that if you fail to pay your card in full every month, you’ll be faced with huge interest charges, in turn, making you pay more than you spend.
Creditsolvers.com.au notes that 7/10 households with defaults on their credit file are a result of overusing credit cards.
If you’re able to pay your card off in full each month, they recommend canceling the cards completely.
4. Spending a lot on takeaways
Your coffee-to-go, lunch-outs, and takeouts are costing you more than you can imagine.
You’re doing serious damage to your finances.
If you can’t control it and you think you really need it, cut back a little.
Stick to one coffee a day or better yet, make your favorite coffee at home.
Additionally, commit to making meals at home as well.
You’ll be surprised at how much money you can save when you do this.
5. Spending too much on vices
If you smoke, then you probably spend a lot of dollars every month for a pack of cigarettes.
If you drink, then you spend a lot of money on booze.
Whatever your vice is, it consumes A LOT of money.
And to make it even worse, your vices are bad for your health, so why spend on something that will make you suffer?
These are the five bad money habits that you must be mindful of. If you want to save more money,
It’s time to address these bad money habits and replace them with healthy ones.