Humans are creatures of habit. They either develop good or bad ones over time. Some habits are harder to break than others. But when our finances are negatively affected by these habits, it’s high time that we take a long, hard look at ourselves, see what we’re doing wrong, and put a stop to it straight away.
If you find yourself continuously stressed about money or having a difficult time making ends meet, you may have some bad financial habits that are causing this. You may or may not be aware of them, but it’s a good idea to quit these harmful habits straight away.
1. Impulse buying. I’m guilty of this, too. I often find myself falling for enticing sales or promotions that catch my eye. But I’m sure I’m not the only one.
If you’ve ever found yourself casually strolling in a mall without any intention of making a single purchase, but you end up buying something anyway because there’s a sale, then you should avoid buying out of impulse at all costs.
2. Using credit cards, not cash. While paying with credit cards is convenient, it can be a money trap, too, especially if you don’t have self-control. You tend to spend more than you should if you use credit cards to make purchases. To avoid this, leave your credit card at home and use cash as much as possible.
3. Paying your bills late. When we have a lot going on, we tend to forget things. This includes paying the bills on time. However, when you don’t pay your bills promptly, there’s a good chance you’re spending more on late fees or fines. If available, you can look for ways to pay some of your bills automatically like an online payment system.
4. Buying unnecessary things. Do you have a hobby? Do you like to collect things? Have you accumulated many items that you rarely or don’t even use? If your answer is yes, then consider stopping buying things that you don’t really need.
If you have amassed a collection of items like books, trading cards, what have you, try selling some of them and make some extra cash on the side while you’re at it.
5. Splurging to feel happy. While others may do other activities to feel happy like exercising, eating, whatever, some people go on a shopping spree to lift their mood. However, shopping to feel happy can become addictive, and this bad habit can be hard to break. So, you need to figure out what triggers you to go on a spending spree and find other ways to cope.
6. Waiting for a windfall. When we get into deep debt, our situation can look bleak really fast. We hope for a miracle to happen. We may try our luck by betting on the lottery or searching for relatives who can bail us out. But the reality is looking for an easy way out will not help us get out of debt. So, instead of waiting for good fortune to fall into our laps, we should take the time to plan, create a sensible budget, and do our best to pay our bills on time.
We all have our unique financial circumstances. This also applies to the bad financial habits we have developed over time. But whatever your situation may be, the first step is to discover the root cause of our financial hardships and stop these harmful behaviours as soon as possible. Let’s do our best to break these bad habits before it’s too late.