Making more money doesn’t always mean the end of your financial woes, especially if you bring your bad habits along with you! If you don’t nip these habits in the bud, you’ll never gain financial independence. We run through a few bad habits you need to kick to the curb to embrace a lifestyle truly free of money problems!
You’re Not Making Savings a Priority
This is a habit you must fight hard to adopt and be consistent with. When you get paid, make sure you are saving a portion of it towards the future. Do it automatically, have a direct-debit setup to ensure you are saving and investing as soon as paycheques come in. Having the system automated will help you stick with it, so you don’t dip into the apportioned amount that goes into an interest earning savings account. You get ahead financially by making savings a priority.
You Don’t Stick to a Budget
Having a budget is personal finance 101, yet many people still don’t have a budget or don’t stick to one. It is important to know where your money is currently going, that way, you can turn it in the right direction. A budget helps you identify where your money problems are and what you can do to improve your financial situation.
You Don’t Separate Wants From Needs
Learning how to separate wants from needs is key to financial independence. A lot of people tend to describe almost everything they purchase as a ‘need’ failingly to correctly classify their ‘wants’. This mode of thinking causes you to actually believe you ‘have’ to spend the money. For example, You might ‘need’ a car for transport, but you ‘want’ it brand new. This mentality is sure to keep you down financially.
You Buy Depreciating Assets
One of the main reasons people struggle financially even when they receive a healthy paycheque is because they accumulate depreciating assets like cars, TVs, luxurious furnishings, etc. This spending pattern limits the resources available to build wealth and, therefore supports a lifestyle of living from paycheque to paycheque. It’s important you focus on buying appreciating assets like real estate, which grow over time.
You’re Trying to Have It All
Instant gratification is a real killer! People end up broke because they want too many things too soon – the 5 star holiday, the designer clothes and accessories, the BMW and the first-class ticket all packed into one luxurious bundle! Instead of trying to have it all, pick one big “want” to budget for and leave the rest for the future when you have had a chance to build up some savings and earn a pay raise. You have to be willing to make the sacrifices now for a secure financial future.
Yes Girl, You can do this!
Cheers to financial independence and real money in the bank!