7 Bad Money Habits and How to Get Rid of Them

How far have you come with your financial resolutions this year? Are you saving more, and spending frugally, have you had a new investment?

Or you are still stuck up on your old money habits, unaware of what steps to take to have more money in your pockets.

If you plan on getting a new piece of furniture you have to create room.

Get rid of the old, clean up, and bring in the new purchase only then will the change be noticeable. Having the new and old together creates some congestion.

So if you plan on making new money moves and changes, you have to get rid of any current habits dragging you back.

Here are some 7 bad money habits to break and how to break them.

1. Not Saving

Have you set aside any amount of money to fall back on when hard times hit? You are probably one of those people with a comfortable income but living from paycheck to paycheck.

If your money runs out before the next paycheck you have friends to borrow from, you have some money lending sites or your local loan shark knows you by name.

What then happens if your income is abruptly cut off, what is your survival plan?

How to break it

You have probably heard the term “Pay yourself first”, you should always set aside a certain amount from your income for personal growth.

You can do it in 2 ways

1. An emergency fund:

This is an amount to act as a contingency plan in case there are any financial set backs or an abrupt investment opportunity presents itself.

2. Long term goal fund:

You probably have a long-term goal in mind. Maybe you want to own a home or you plan on retiring in luxury.

Some of these goals are mostly achievable when you come up with a savings plan over a period of time and stick to it.

2. Not budgeting

Are you a random spender?

Do you not have an articulate plan on how to spend your money and you pay bills as they come in?

You go to the store and casually pick whatever you want, Or you’ll go out with your friends to eat and drink and just pay the bill as it comes.

How to break it

Money management requires accountability, and a budget is aimed at keeping you accountable. You should always have a budget planner preferably a monthly budget planner.

Extensively note down every bill that should be settled beforehand.

Create allocations for each expenditure including your daily allowance, eating out, or even an amount you lend to people. Strictly stick to your budget as much as you can.

This keeps you financially accountable to yourself.

3. Overspending and buying on debt

Do you have an eye and a taste for the finer things in life? Do you identify as rich but your pockets say otherwise?

Better yet are you of the school of thought that ‘you only live once’ and luxury is essential before life is cut short?

How to break it

If you can afford it, then by all means live it but if you cannot, work for it until it is achievable.

Spend within your ability and within your budget as much as you can.

Assuming, you want a designer handbag or a trip you can opt to work and save up for it.

You can also choose to gift yourself high-value items on special occasions such as holidays and birthdays to avoid constant buying.

This gives off some form of delayed gratification and teaches financial self-control.

4. Having no goals

You live on a wimp, however, or whatever life brings, you settle it.

Are you the kind of person who has set up no targets as the fear of not hitting the targets will leave you being too disappointed?

This leaves you in the blind bat kind of situation, unaware of where you are headed and prone to any form of financial derailment.

How to break it

Write down all your life desires. Set up short-term (daily, weekly, monthly) targets and long-term (yearly, 5-year, 10-year) targets.

Be very specific about your goals and write down the specific ways in which the targets could be met.

Choose the best course of action. Then start where you are, start small but just start now.

5. Not investing/ creating different sources of income.

Do you have several streams of income and how much are you making? Are you working for money or is money working for you? How is the longevity of your streams of income?

If you are employed at a 9-5 with a standard salary and a standard lifestyle, if the company goes down today what happens to you?

How to break it

Opportunity and chance will most probably find you when you least expect it. Save up and be ready.

In the meantime always research for ways that money can work for you, you can lend a trustworthy friend who can return it with interest.

You can put it in a money market fund and also start a free print-on-demand business online.

 You can look at your hobbies, interests, and even career, extensively research, and note down all possible business opportunities in the niche you choose.

Pick what you are best equipped at financially, mentally, and even timewise then start small and grow.

6. You do not pay debts on time 

Maybe you just cannot seem to rid yourself of debt and borrowing is always your first solution or a bad period sets you back into too much debt.

Maybe you are just one of those people who disregard debt intentionally.

Debts erode reputation fast and it turns friends into enemies.

How to break it

Have you grabbed the book ‘The Richest Man in Babylon’ (https://thediamondsmine.com/files/Ebooks/Clason-RichestManInBabylon.pdf) it teaches the best methodology for paying debts off.

Step 1: Note that everybody’s money is important to them, the same as your money is important to you, they should not have to wait if you can pay them back.

Step 2: Write down all the debts you have whether large or small and their amounts.

Step 3: From your income note down the amount dedicated to paying debt, then divide it among all your creditors. The most urgent and whoever is owed more gets more.

Step 4: Reach out to your creditors and come to agreement on your payment plan.

Step 5: Be consistent in payment and always pay on time.

Step 6: Avoid debt.

Conclusion

Life is too short to keep gravitating towards the same old habits that are keeping you in the struggle and desperation.

To create new habits you have to be aware of the old and willing to uproot them, new wine cannot and should not be put in the old wineskins or they will be ruined, hence at this point change is inevitable.

Be consistent on the new positive habits you make and over a period of time change will definitely be visible.

You can also learn more about the importance of positive financial habitshttps://bigsisterunfiltered.click/piggy-banks-tips-on-raising-money-smartkids/.