7 Financial Habits That Can Render You Financially Broke

financial-habiits

Financial Habits To Rid Of…

Do you constantly find yourself in financial challenges? Financial challenges do not only affect your ability to acquire things that you want and need but can also affect your overall well-being if care is not taken. It’s quite likely that you have some financial habits that render you financially broke without you realizing you are the one contributing to your situation. Getting rid of the financial habits that tend to render you financially broke is the most sensible step you can take if you want to improve your well-being and financial future.

Use the tips below to help you let go these financial habits:

  1. Inadequate emergency fund.

Even if you are rolling in money now, the biggest mistake you could ever make is to assume that you will always have enough money to live off. As the saying goes, “…no condition is permanent in this world.” You need to be better prepared for financial disaster, it is very crucial that you have an emergency fund that can cover you and your dependents for a minimum of 3 months. In as much as we never pray for bad things to happen to us, we live in a real world and things do happen; people become unemployed, relationships breakdown, unexpected natural disasters happen, even unexpected major bills can be financially draining. It can happen!

  • Start putting some money aside, it doesn’t really matter how much you start with…just form the habit of saving monthly. Ensure the amount you put aside isn’t causing you hardship and begin to build yourself an emergency fund.
  1. Paying bills late.

Paying your bills late is a habit you must stir away from as most of it goes in your credit record and more also, you end up paying more because of late payment charges. Credit card companies make a lot of money from the late fees they charge….stop helping the rich get richer on your expense! If you have the money, pay as soon as you get the bill or keep a record of when you should pay by. 

  • Cultivate the financial habit of paying your bills well in advance of the due dates.
  1. Improper use of credit cards.

Don’t buy goods you cannot afford with a credit card. The worst thing you could do with your credit card is purchase items that you ordinarily will not be able to afford to pay off when the credit card bill arrives. Just by paying the minimum amount on your credit card bill will contribute to you going financially unstable as it will take you a long time to clear your debt as well as lowering your credit score. 

  • Determine to only use your credit card in times of emergencies or to accrue rewards and ensuring you pay off your balance in-full every month.
  1. Failing to save money regularly.

It can be difficult to save money when you are struggling to make ends meet, however, it is the most critical time to save. Saving money on a regular basis helps you to manage your money appropriately and gives you a sense of accountability. You don’t have to save a huge amount, you can start saving about 1% of your income and then gradually increase the amount.

  • Try saving from your next pay package and watch how your situation begins to change.
  1. Impulse buying.

Have you noticed how when you make an impulse buying that costs you quite a lot, you always end up with not enough money by the end of the month? Impulse buying only gives you temporary buzz and once the buzz wears off the reality sets in! Once you realize how much you spent on that unnecessary impulse purchase, you begin to resent it as it becomes a constant reminder of where your money is. 

  • No matter how appealing an item seems to you, always take some time….even a few days to ponder about the item before you decide to buy it. You will be amazed how the urge to buy often diminishes with time.
  1. Purchasing items you don’t need.

There are some things that are priorities in life and they are: food, clothing, accommodation and health care and all others are to some most degrees optional. As long as your priorities are taken care of, avoid spending your money on items you do not need. Rather than buying that shoe or bag that you may or may never wear, save that money or spend it more wisely.

  1. Not contributing towards your retirement.

Old age is inevitable…what are your plans for the future? Having worked most of your life trying to make ends meet, do you not deserve to retire comfortably? It amazes me how many people are relying on the government handouts when they become senior citizens. Look around you today and you will see a number of seniors who constantly face financial challenges because they had bad financial habits and failed to contribute adequately towards their retirement. You can start today and build a more comfortable future for yourself.

 Getting rid of these negative financial habits is the main step for starting your journey to a more financial stability. Take one financial habit a day and do all you can to eliminate it from your life. Establishing positive financial habits will help you in achieving your financial goals and also in managing your money well. You will also find that your income lasts you longer! 🙂

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About the author: A wife, mother, worshiper, writer and a business woman of integrity. An advocate for life purpose and passionate about women living their lives to the fullest and on purpose – making impact… having fun whilst earning a living. Remi Badozi is a life purpose coach who empowers women to live purposeful and leverage the power of the internet. Founder and creator of Life Purpose Matters.

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