If you’re like most people, you probably don’t even realize that you have bad money habits. And that’s a problem because bad money habits can keep you poor. In this post, I’m going to write about five bad money habits that keep you poor. Before recognizing and replacing these bad habits with good ones, I was always in debt and had trouble saving any money. But once I replaced my bad money habits with good ones, things changed for the better. So if you want to get your finances under control, follow this blog and start replacing your bad money habits with good ones!
We all know that money doesn’t grow on trees. It’s important, then-and if you’re reading this article then I assume it’s more so than ever before to develop good financial habits early in life, or else chances are high for becoming poor later down the line when faced with massive debt loads and low savings accounts full of cash (or credit card bills). One thing these people do well though? Recognize their weaknesses and replace them quickly; like me just last year after understanding how badly my bad spendthrift ways had impacted future opportunities for wealth accumulation, retirement plans for my kids someday-and myself too!
Money Habit Number one: Plan your payments and pay yourself last
The first money habit is paying yourself last. This means that you should start by giving your paycheck or retirement account the ol’ college try. Then set up automatic payments for everything else—rent/mortgage insurance premiums (if applicable), phone bills, etc. So as soon as those funds clear in conjunction with any other available cashouts from savings accounts, etc. those remaining balances will always get paid first!
You know that expression ” Parkinson’s Law”, which basically states our demands will always expand to consume all available resources. The same principle is at play with time and money—if we have a week’s worth of projects, then inevitably they’ll take over your whole week. But if you just have one hour to complete the same project you’ll be super focused and efficient to complete the project within the given time period. It’s the same with money. Your expenses will always rise to consume all the money you have. The answer isn’t making more and spending less, it’s taking control of your financial situation by being mindful about how much is going out versus coming in. So that when opportunities arise for growth or promotions at work they can be taken advantage of without worry. Because we’re responsible adults who know better than just dive deep into debt over things like cars- even though this may seem convenient
“You gotta treat saving money like a bill.” When you get paid, set aside 10% of your earnings and put it into savings or investments. Then live on what’s leftover so that you can stop letting bills slip through the cracks in addition to being able to keep some for yourself! Rising inflation rates mean saving today could save our retirement tomorrow.
Money Habit Number Two: People with Expensive tastes
The next bad money habit to give up is trying to keep up with friends who have expensive tastes. So, do you have any friends that always want me to go out and about in society? If so then it’s all right for them just say “Hey sorry I can’t” because of my financial goals here on this project – financially speaking of course! They’ll understand if there really are authentic connections between two people rather than someone manipulating their tale through social media or something like where everything seems perfect but at what cost…
With the rise in social media, people are spending more time scrolling through their newsfeeds and checking out what others’ lives look like. The problem with this? It can leave you feeling left behind as Those around them become financially better off than you!
A recent survey found that 95% percent of American adults have at least one friend who has gone bankrupt due to overspending on credit cards or other loans. Just so they could keep up with their peers’ lifestyles—and these numbers don’t lie! If we’re being honest: It’s hard not wanting to join them when you see them enjoying life so much more than yours does. Not only will having expensive taste cost your wallet but it’ll also cost relationships. There’s always someone who has better clothes, food, houses…The list goes on and on!
Money Habit Number Three: Credit Card Debt
We all know that credit cards are great for earning miles and perks, but there’s a third money habit worth giving up: putting everything on your card for cash-back rewards or award miles. You might think this is an advantage because you’re actually saving money by not paying full price at merchants and getting cheaper flight tickets. However, the benefits of having these incentives cancel each other out in most cases due to consumers spending way more than they would have otherwise without them!
For my daily expenses, I use a debit card. But for the expenses that are high in value, something like more than $100, I use a credit card. Don’t get me wrong, I pay it off within seconds of making the purchase. I do this to avail myself of the amazing credit card benefits but also to keep a check on how much I spend on these expenses.
Money Habit Number Four: Getting comfortable in Debt
This is the new normal.
It’s not just people in their 20s anymore who are acey-tight with debt; it has become totally common for someone to carry tens of thousands worth of student loans, mortgage payments, and car loans at any given time. Even if they’re well past retirement age!
Some people get so comfortable with debt that they don’t even realize how bad their financial situation has become. They might have a job, but it doesn’t pay enough to cover all of their expenses. So instead of finding ways to make more money or tightening their belts, these folks continue living beyond their means and slowly digging themselves into a bigger hole every month.
This bad money habit is one you don’t want to fall into because it can lead down a dark path of bad choices in life and bad things happening around them – like losing their home, car, or job if they’re not careful enough with how much debt they’ve taken on!
When I was 18, debt seemed like just another normal part of life. The bottom line is that if you don’t have to take out loans then do so only when necessary and know how your money will be spent!
Money Habit Number Five: Start investing early
The bad money habit I was talking about earlier is the one in which people wait too long to start investing their money. You might think that you’re too young, don’t make enough money, or simply don’t have the time to invest – but this simply isn’t true!
In fact, if you wait until later in life to start investing, you’ll miss out on a lot of potential growth because your money won’t have as much time to compound. That means that when it comes time for you to retire, you may not have enough saved up because you didn’t start early enough!
I’ve been saving up since I was 18. I invested early and often, so now my money is working for me while I continue to save more. It’s never too late (or too early) to get started with investing. There are always going to be reasons why you can’t invest, such as not having the money or knowledge needed. However, if this is something that has been holding back your financial freedom then there’s no point in putting it off any longer because eventually all of these obstacles will have mounted up and become even more difficult than before!
The five bad money habits we discussed are easy to fall into, but they can have a big impact on your long-term finances. It’s important to be aware of these habits and take steps to break them if you want to achieve financial success. Are there any other bad money habits you would add to this list? Let us know in the comments!