Who is our worst enemy when it come to money? We are!
While there will always be more money to be made. That doesn’t mean that we should be spending money without a plan of some sort. We are all guilty of spending money on the wrong things. Leaving us wondering where our money has gone at one point or another.
Without acknowledging our mistakes, you will never be able to change for the future.
So if you are trying to get your finances in order and giving budgeting a go. Here is where you are going to learn the 3 bad spending habits that are setting you up for failure. Even before you begin your financial journey.
Spending To Impress
Who doesn’t want to impress those around them with shiny new things they just bought? Kids do it all the time with the latest toy they just have to have. Well its the same thing for adults. With trends coming and going all the time, it takes a lot of spending to stay on trend and impress those around us. The problem is that when the new trend becomes old, you will be just left with a whole bunch of things that you don’t really want or need. To make matters worse, nobody else wants them either. So stop competing and comparing what you have to those around you. You shouldn’t have to impress people with needless spending to maintain a friendship of any kind. So save your budget and stop impress spending in its tracks.
Spending Because You Can
So you have money in your bank account and those shoes are to die for. The store has them in your size, so why not buy them? Does this sound familiar at all? Boredom spending or spending because you can, doesn’t mean you should. Most of the time you done even realise you are boredom spending. You buy a coffee because it smells nice, or takeaway because its right there. You get a email about a sale at your favourite store even though you don’t really need anything. It all adds up, ruining your budget. Break the habit by trying to never make a purchase without a purpose. Only buy it if you need it and don’t put it on credit cards because you can just pay it off later.
Spending Money That You Don’t Have
I am talking about tax returns or payouts. The amount of which is never a guaranteed when payment time comes around. You never know what your going to get, if anything. But you start spending like you already have it in your bank account. Putting charges on your credit card because when that money comes in your going to use it to pay off the credit card. What if it doesn’t come in or you get well under what you expect. Now your stuck with a huge debt that you cant pay off. There goes you budget, now you will be stuck making those credit card repayments that you didn’t plan to make. Spending money you don’t have just sets you up for failure to just in the short term but in the long term future as well. Is it really worth it in the long run?
By now you are probably wondering how to break these bad habits. Well its simple, stop and think before you buy. Stay motivated in your financial goals, focus on what is really important to you and never buy without purpose or the means to cover the cost. We don’t have to live in debt or barely getting by. By following some simple financial strategies you can reach your financial goals.
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