It is never too late to change, more so when it is for the good. Management of finances and wealth is important, and hence it is imperative to adopt effective ways to do the same.
To ensure that you have a safe and sound financial future, you need to give up the following habits immediately. Read on to know more.
Over reliance on credit cards
Credit cards are really the biggest money traps in the modern day. They lure you into spending exorbitantly and lead a lifestyle that is way beyond your means. What we do not realize is that credit cards only add on to our financial burden through high interest rates. So unless you are absolutely sure that you can clear your credit card bills every month (without incurring any interest), don’t get tempted to use credit card to extend your means and get yourself pushed into a debt trap.
The human heart is all about emotions. And while this pays off well when it comes to love, it does not when we talk of financial management. Impulse buying coerces you into buying things in the spur of the moment. The end result? You end up wasting your hard-earned money on something that you did not even need in the first place. Think rationally, delay your purchase decision, and eventually buy something if you really need it. So the next time that lucrative sale comes up at the mall, hold back your impulse buying instincts, and let your mind take a rational call for you.
Missing the monthly budgets
There is no way that you will be known as a ‘good planner’ in the financial dictionary unless you have developed the habit of budgeting your income and expenses. A budget is a holistic snapshot of all your sources of income as well as all outgoing expenses. It helps you plan your finances better and save more by identifying areas of superfluous expenses. If you have not been making monthly budgets lately, now is the time to begin!
Opting for the easier way
Feeling hungry? You go to the nearest quick-service restaurant instead of making a delicious meal at home. In the mood for a break during the day? You go and buy an expensive coffee with a donut instead of going for a brisk walk. If these instances sound familiar, you immediately need to get rid of your ‘love for ease of doing things’. Everybody loves convenience, but there is nothing like making a little extra effort that helps you keep your finances in good shape. Certain small but significant lifestyle changes can make a world of difference to your financial well-being.
Competing with peers
It is a psychological tendency among humans to compete with peers. The desire to ‘be the best’ and ‘have the best’ is never ending. So no wonder when your neighbor got that swanky new car, you decided to get one for yourself without thinking of the financial implications. Your friend moved to an alluring apartment, and you immediately applied for that high interest rate housing loan for yourself.
What you need to understand is that such unhealthy competition can be detrimental to your financial well-being. Do not be a victim of the ‘herd’ mentality. Prioritize your financial goals and objectives and allocate funds accordingly.
“Practice makes a man perfect”. That is precisely what you should do when you try to get rid of the above habits.