According to Dictionary.com, a habit is an acquired behavior pattern that is regularly followed until it has become almost involuntary. Since habits are done over and over again, it feels safe and normal to do it. However, some habits sabotage your financial health whether you are aware of it or not.
As “old habits die hard”, it takes patience, motivation, and effort to break these money habits:
1. NOT STICKING TO LESS CREDIT CARDS
When you are using more than two credit cards, you are allowing yourself to be financially vulnerable. It is not only harder to keep track of your spending but you will also owe more than you expected. Instead, stick to at least two credit cards that have minimal annual fee and a good rebates program.
2. NOT KEEPING TRACK OF YOUR SPENDING
Many of you do not keep track of your spending as you deem it to be time-consuming or unnecessary. However, making money management an habitual regimen is essential for every working adult.
You do not to adapt an extravagant lifestyle or earn millions to start a financial plan. Simply keep track of your daily spending and examine it every month. Then, accurately plan to meet your spending and saving goals.
3. NOT PAYING YOUR CREDIT CARD DEBT
Aside from splurging your money, another unhealthy habit that you have to stop is not paying off your credit card. The bad credit decisions you made while you were younger can haunt you in the future. For example, it can affect whether or not you are able to get a loan to buy a car.
So you must stay organized to keep up with your payments. Set aside some time in the beginning of the month to make a list of the bills you are expecting to receive. Put it on your working desk or create a file for it. This way, you will not pay a bill twice even if you received it simultaneously by e-mail and postal mail.
Alternatively, you can get your payments automated. Since you are prepared for the bills earlier on, you may have available money in the bank to pay it the same day as you received it.
4. NOT INVESTING
If you have a habit of ignoring investment opportunities due to the irrational fear of losing everything then, you cannot reach your fullest potential. If you are too conservative, you can still invest and grow a small amount of money! Just seek out the help of financial advisers or financial professionals first. This way, you can sit back and watch your money grow through time.