As preconceived habits are harder to break, it takes patience and dedication to break these financial habits:
THE HABIT THAT I DO NOT TOLERATE
If someone asked me to identify a single financial habit that I am irked by the most, I will immediately answer “disorganization”. I appreciate when things are labeled and stacked in order. This is why I make it a habit to file my receipts, keep my cards in one place, and schedule my payments. Is it just me or does your mind work more efficiently in the sight of a clean desk?
Well, tidiness works to my advantage as it helps me to avoid unnecessary expenses. Money spent on interest charges, late fees, unused memberships, and unwanted subscriptions can pile up! Can you guess what binds these expenses together? Disorganization is the answer.
Place conscious effort towards creating a system that will keep your finances in order. Do not fall behind your billing statements, nor shall you let your important documents stack up.
THE HABIT THAT BLOCKS A GOOD DEAL
Say you are a habitué of Money Digest’s Facebook Page. You frequently stumble upon good deals in various categories. As a business owner, you are immensely attracted with the services of a supplier that offers inexpensive prices online. Do not cancel on your current supplier in a snap! Instead, call to negotiate. Carefully analyze the situation and make logical points about the competitors.
If your timing and approach is proper then, your current supplier may quickly match the competitor’s offer. Do not be afraid to negotiate!
THE HABIT THAT MANY POSSESS
Many Singaporeans do not keep track of their spending as they deem it to be time-consuming or unnecessary. However, making money management an habitual regimen is essential for every working adult.
You do not need to adapt an extravagant lifestyle or earn millions to start a financial plan. Simply keep track of your daily spending and examine it each month. Then, accurately plan to meet both your long-term and short-term financial goals.
THE HABIT THAT LIMITS YOU
There is a reason why entertainment websites such as 9GAG and Reddit flourish worldwide. These were especially created for people who have a habit of procrastination. These people push off tasks and decisions as they intend to accomplish it in “later” parts of the day. Have you caught this habit yourself? It is time to break the cycle as you welcome a new year!
Reach your fullest potentials by researching your options on insurance, savings, and investments. Befriend Father Time as he can bestow you the gift of compound interest.
THE HABIT THAT CAN BREAK ONE’S SMILE
Some religious leaders advocated against the idea that more money can bring happiness. Money can immediately bring joy, but only to an extent. Researchers in Princeton released a study in 2010 showing that happiness increases as the income increases until US$75,000. After this point, it plateaus.
Purchasing or owning more items can increase your happiness in the short run. In contrast, spending your money on others can generate more happiness than splurging for yourself. Consider holding a fund raiser or donating your old clothes. A little act of kindness can go a long way!
THE HABIT THAT HARRY POTTER CAN CONQUER
The J.K. Rowling’s fictional book series that blew the world by storm included the dark creatures called the “Dementors“. The lead character named Harry Potter had to vanquish these creatures, which feed upon human happiness. They suck the individuals’ souls out of their bodies. Rowling modeled these creatures to the immensely negative people in her life.
Are you a Dementor? Do you create a bubble of negativity above your head? Do you believe that you are constantly overworked and underpaid? Is it your habit to complain about your paycheck? Consider stopping the vicious cycle of negativity. Instead, solve your problems by employing strategies such as negotiating a pay raise or going on a well-deserved vacation.
This year, stop ranting and start doing!