Bad money habits you should get rid of now
The lack of financial literacy in the society means that most people are continuing to follow bad financial habits. This is merely because they do not know better. Do you feel that you have no control over your finances? That you cannot save money from your earnings? That most months you have to rely on your credit in order to make ends meet? This means that you have bad money habits which you should get rid of as soon as you can in order to live a comfortable and debt free life. These habits are extremely common that most of us do not even know we have them. Let us take you through a few of them.
1. Do not ignore your bills
Remember when in college we avoid checking our grades knowing that they are going to be bad? Well most of us continue that habit to our financial lives as well. There are many people who blatantly ignore their bills when they come, thinking maybe in some miracle they will pay themselves off! Well, unfortunately, that does not happen. Make it a habit to completely pay off and clear off your bills as the first thing you do when you get your salary. This might be difficult at first, but soon you will understand the sense of stability and financial confidence that you get when you get rid of the burden first.
2. Do not spend without keeping a track of your expenses
In other words, keep a budget. Even if you feel like keeping a formal budget is time consuming, there are easier ways to keep track of your expenses without having to write them down. Use your mobile phones as a way of noting down your major expenses. Spending money blindly will not only drain your salary but will also build up your debt if you are using credit cards.
3. Do not max out your credit cards
Your credit card is one of the most useful and yet the riskiest tools that you have financially. If you manage to pay off your balance every month, then there are many benefits that you can get through your card. For example, merchants who tend to offer many promotions to credit card owners. However, if you have the habit of only paying off the minimum needed amount every month, then you end up paying way more than the discount that you got for the credit card.
4. Do not put off saving for your future
Most of us, especially in our young years, think that saving is for old people, which is not true! Keeping a solid savings account at any point of time is a great way to ensure financial stability. It does not matter how small the amount is, the most important thing is to keep an ongoing saving account that you contribute frequently.
Did you max out your credit card? Did you ignore your bills? How about consolidating all your bills into one so that it will be easier for you to manage? Considering doing that? Contact us to help you with that! As a licensed moneylender, we provide affordable low interest loans. If you’re interested in getting one, do fill in the application form! We will get back to you as soon as possible to inform you if you’re eligible for a loan 🙂