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I’ve listed the 5 habits you should avoid if you want your financial life to prosper. I’ve been guilty for having some of these habits, but I have learned from my mistakes and I can honestly say I no longer have any of them today.
If you want to better your financial life, then keep on reading. Hopefully we can undo some of the things that are undermining your financial progress.
Do some of you get that feeling when you see a bill in the mail and you just don’t want to open it? Or you say, you’ll start saving more money or start a budget, but you never get around to it? And the next thing you know you’ll wake up and be 60 years old and you still haven’t gotten around to saving any money.
Or do you ever charge things you don’t need on a credit card and think to yourself you will just deal with paying it later. Even though you have no idea where you will get the money to pay for it? But you tell yourself you’ll figure it out whenever you get the bill.
This is called procrastination. You need to face your financial responsibilities and start taking action today. Stop making excuses to start investing in your 401K. Do it now. Life will start getting in the way and years will go by before you know it. Stop using your credit cards to buy things you can’t afford.
If you started investing years before you actually did, you could have had potentially almost a million dollars more by the time you reach retirement age. Open that dreadful bill in the mail and pay it. Don’t put if off for later because you will forget about it and you’ll pay more interest and late fees on that bill. That money could have gone into your emergency fund or retirement accounts.
Do yourself a huge favor and stop procrastinating when it comes to your money. Get into the habit of paying your bills on time and save more money. As soon as I get a bill, I schedule the payment through my Bill Pay feature via my checking account. And I automatically have monies go directly into my investment accounts and emergency fund.
You Don’t Have Any Financial Goals
If you don’t have any financial goals, you are more likely to throw money away on random useless things that will eventually end up in a pile of junk. People do this out of boredom. If you have nothing to save up for, then it makes sense to throw money away on things you never needed in the first place.
Unless you are a millionaire and have zero debt, you will always need financial goals to work towards. My financial goals include retiring early, paying off my mortgage, and having a side hustle (this blog) that earns a decent income so I can quit my day job.
Write down some of your financial goals (Do it now and don’t procrastinate. Write them in your phone if that makes it easier for you). This includes saving for a down payment on a home, paying off your student loan/credit card debts, buying new furniture for you home, or saving up for a dream vacation. Do everything you can to stick to them. If you do this, you will have more focus and discipline when it comes to your money. You will feel like you have a financial purpose in your life.
Having the ‘It Only Costs a Few Bucks’ Mentality
When people buy a $5 latte every day, they say to themselves, it only costs a few bucks. But do you know those few bucks add up to $1300 a year if you treat yourself to a latte 5 days a week. If you had invested that money instead, you could have a small fortune in 20 years.
I cringe whenever I hear people say that something only costs a few bucks so what the heck. They just don’t realize that those few bucks add up quickly and can be put to better use, like paying down your debt or investing more money for your future.
I want you to think twice whenever you are about to throw money away. Stop saying to yourself that something only costs a few bucks. This kind of thinking will ultimately undermine your financial progress and success.
Feeling ‘You Deserve It’ Attitude
Are you one of those people that as soon as you get your paycheck you spend all of it because you think you deserve it? You deserve to get your hair and nails done. You deserve to eat in that fancy restaurant. I mean, after all you did work hard for your paycheck, right? Wrong! This attitude will put you in the poor house so fast your head will spin.
Again, unless you are a millionaire, the only thing you deserve is to save more money and stay out of debt. I’m not saying you can never eat at nice restaurant and treat yourself. But usually I find people with this kind of attitude are always broke and they have close to nothing in savings or investments.
Stop feeling you deserve to treat yourself every day of the week. I mean, you can but you should have an 8 month emergency fund, max out your contributions to your retirement accounts and have no credit card or student loan debts. Only then you can tell me to shut up and go on living your life.
Be happy with the things you have in your life right now. If you need some perspective, YouTube some living conditions in developing countries.
Giving Up On Money
Are you in massive debt? Do you just not care anymore when it comes to money? Do you feel like you just can’t get ahead when it comes to your finances? So you decided to give up and dig yourself into a deeper financial hole.
There were times in my life when I also just wanted to give up because I had no income and the little money I had saved up was going so fast out the door. It felt like there was no light at the end of the tunnel. But I pulled myself up and I survived. And so can you.
Stop right now and get yourself out of your financial rut. Stop feeling sorry for yourself. I know it’s easier said than done but the faster you take action against your debt, the faster you will be out of debt. Part of why money exists is to make your own life better. But if you are in this situation, you probably feel money has hurt you more than it has helped you.
Take a moment to regroup and change the way you view money and what it can do for you. If you start becoming more responsible with your finances, eventually everything else will start falling into its proper place.
Take control of your financial life. Stop spending frivolously and start paying off what you owe. Call your debt collectors and see if they can work out a payment plan that works better for you. There is always a way when it comes to your money. You just need to take action now. If you do, your financial woes will become more manageable.
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