Bad financial habits || Bad money habits

 

Bad financial habits. Cultivating good habits is just as important as eliminating bad ones. When it comes to finances, the rates rise exponentially. Small expenses that could have been avoided ultimately lead to a person getting into debt and not having control over his life.

 

Let's try to become financially literate people and start by getting rid of habits that threaten to make our lives worse. Developing bad financial habits in your twenties can lead to significant debt and stress in later life.

 

Habits tend to form automatically, without our participation. And wherever there is unconsciousness, there will be people who will definitely take advantage of it. We present to your attention seven bad habits that you urgently need to get rid of.

 

Impulse purchase

A person who does not have a financial goal will make such purchases again and again. During impulse purchases, we lose touch with our budget, which leads not only to its depletion, but also to unnecessary loans. Never make such purchases.

 

If you see something that you suddenly want to buy, take a break of a few days. Marketers also take this into account, so they force you to hurry, because otherwise the price of this thing will increase - so you need to buy it here and now. Don't fall for such tricks. The world is filled with goods and if you still need it, you can buy it at any time.

 

Do not buy an item before you can earn money for it (for example, on credit). It is better to refrain from this and carefully consider whether this money can be spent on something more useful. Overspending on non-essential items is one of the most common bad financial habits that people struggle to break.

 
Keep up with your friends

Competition is good in matters of business, self-development and personal growth. We all want to become better than others and this is a completely normal process. When it comes to shopping, a person may spend more than necessary simply to impress others.

 

The big problem is that no one admits why they bought an unnecessary thing. The person will make excuses and sincerely believe that he needs her and that he did not want to make an impression. Be honest with yourself. Bad financial habits such as not saving for emergencies can leave you unprepared for unexpected expenses.

 

When someone you know buys an expensive item, it can trigger a psychological trigger to do the same, to compete with him. Look at anything for the opportunities it opens up for you, and not for its appearance. Find out if there is another similar thing, but much cheaper.

 

Remember that success is difficult to evaluate from the outside. The person who buys expensive things may be much poorer than you. Completely different things are said about the true state of affairs, and over a long distance.

 

Shopping for joy

Shopping is generally considered a psychological illness, although some people can be convinced that it is a lifestyle. There is nothing more financially wrong than enjoying the act of shopping. Better read a book or do yoga. Shopping temporarily relieves the problems that it itself causes.

 

There are other things that will pump endorphins into your brain without costing you a penny. When you go shopping to lift your spirits, you create a clear and simple association command for your brain (anchoring method in NLP) - shopping is a pleasure.

 

This leads to the fact that nothing else excites you more than shopping. Then this connection becomes extremely difficult to break. Poor budgeting and impulsive buying are classic examples of bad financial habits that can derail your financial stability.

 

Before buying, ask yourself whether you need this item or if you just want to temporarily improve your mood. 100 dollars for a good mood - isn't that a lot to pay? Moreover, you could spend a week of your life earning such a sum. However, if you clearly decide for yourself that you need this item, buy it and have fun. But at the same time, the value of this thing must correspond to its price.

 

Waiting for a miracle

Many people associate buying an item with a miracle, some great joy. Such dependence on things makes life difficult for any person and will never make him truly happy. Happiness always sits within and depends little on external factors. Teaching children about money management can help them avoid developing bad financial habits as adults.

 

Often, buying a new thing brings a lot of problems, in addition to additional expenses for its maintenance. Disappointment sets in, after which the person thinks about how to correct the situation - and yet another purchase comes to the rescue.

 

This chain will never be broken if you continue to expect miracles from your purchases. Ignoring credit card bills and accumulating high-interest debt are bad financial habits that can ruin your credit score.

 

Desire for a rich lifestyle

As we get older, we expect a better financial status in life than we had when we were younger. Better job, more income, great opportunities. However, many people mistakenly believe that they only need money to spend it instantly. The problem doesn't arise when you spend a lot and still earn the same amount.

 

It occurs when at some point in your life you are fired from your job or your income drops. At this point, you begin to regret not investing your money in your future when you had it. Confidence that you can earn more and more every year is an irrational approach to life, although correct from a motivational point of view.

 

Earn more, but don't let yourself spend all your money. A rich man is not one who has a car, but one who can quit his job and live off the interest on his investments. It's crucial to identify and correct bad financial habits early to achieve long-term financial success.

 

Keep your debts out of your sight

Of course, if you have debt, it shouldn't eat you up inside. You can move on with your life, but remember that you need to get rid of him as quickly as possible. Loans and debts have one simple feature - the sooner you pay them off, the better. Get rid of debt and start planning your budget. Breaking bad financial habits requires discipline, education, and often the help of a financial advisor.

 

The very presence of debt makes a person emotionally unstable and easily susceptible to stress. It affects a person in the most destructive way. Be aware of your debt and get rid of them. Many people fall into bad financial habits by not tracking their spending and living beyond their means.

 

Take interest-free loans

This is the trickiest type of loan. Everything about it seems great, but its very presence contradicts one of the most important laws of financial literacy - don’t buy something you haven’t earned for. Of course, even here there are exceptions when buying this thing will allow you to make money on it, but still, usually a person buys a completely unnecessary thing.

 

In addition, human psychology shows its bad side here too. People often fail to repay even such loans on time, which leads to fines and additional problems. If a student nevertheless sits down to write his thesis in the last week, and then the person who took out the loan simply will not have an incentive to pay everything on time.

 

In addition, an interest-free loan for a year provides for a stable financial position during this period. But we know that there is never stability in the economy. Bad financial habits, like relying on loans for daily expenses, can create a cycle of debt that's hard to escape.

 

Hopefully, you will be able to avoid many of the bad financial habits mentioned above. Create your financial plan and strictly follow it - this will allow you to be conscious about your finances. We wish you good luck!