Friday, 2 August 2019

Bad Money Habits You Need To Break

Bad Money Habits You Need To Break

Today we're going to be looking at 5 bad money habits that you need to break this year and you can do this but I have had a nail-biting habit for as long as I can remember and I know how hard it can be to break a bad habit but from trying to beat this thing for so many years the first step was becoming aware that I was doing it

When I was biting my nails I didn't realize that I was biting them and in my case, it took someone else letting me know when I was biting them to help me realize that I was biting my nails,

With any of these 5 bad money habits, we're going to be highlighting today.

First, we need to focus on becoming aware when we're actually participating in them and that will make it much easier to slay this dragon.

Let Get Started

1.  Paying The Minimum On Your Credit Card Balance

Most credit card only requires you to make a minimum payment each month as you probably know which is typically a really small and fixed them out, sometimes $20 to $25, if you have a big balance it might be $50 or more

This actually a small percentage of your balance normally from $1 to 3% and so paying this minimum is tempting. Especially if money is tight, but when you do this you are linking the time that it's going to take you to pay off the debt and you're increasing the amount of total interest that you're going to pay.

That $100 pair of shoes that you bought might ultimately end up costing you like $300 to $400.

This year let's focus on breaking that bad habit and getting in the habit of making payment in full, if at all possible that is the way you want to use a credit card, that is the way the financially savvy used credit card, they make the full payment, they pay the entire balance off every month 

I've been in a situation just like you where you don't have enough money to pay the balance in full and for whatever reason, you've racked up some credit card debt and you can't pay the full thing off

That's very normal and common but that's a situation that we want to get out of as soon as possible.

2. Paying For Stuff That You Don't Actually Need

The reality is that so many of us are wasting so much money on stuff that we aren't actually using and it really begins to add up, so if you have a gym membership that you're not using and I know you're thinking you might go later, but if you're actually not, then just save the money until you're ready to go again 

If it's a Netflix subscription you never use, Hulu or even if it's buying stuff from the grocery store that you aren't eating, all of this begins to add up and it actually becomes a whole lot of money.

3. Having No Idea Where Your Money Is Going

With technology these days there's absolutely no excuse not to know what's going on with your money. It's so much easier in real-time to see what's going on with your money and yet at the same time so many of us are just completely clueless about what's going on with their money

Let's make it a point this year to actually figure out what's going on with your money.

4. Not Making Savings Automatic

One of the secrets of financially wise people is they don't rely on their willpower to make good money decisions, in fact I've never met a single person who has saved a ton of money or saved a lot of retirement or anything else who did it just by remembering to save money each week, that just doesn't work for many people. 

What does work is making it automatic and this is the secret that all the financially wise people know, they know that I need to create a system that's going to save for me automatically and I don't have to think about it and my willpower is out of the picture

Again this is one of those things that being alive in the 21st century has actually made this really simple because you and I can create a system that automatically saves for us with no effort on our part 

there are a lot of different ways you can do this, you can set something up like this with many banks where they automatically pull a certain amount out of your checking account in your saving account each month. That works great and if you are looking to do some investing with these I will go into that in more detail on our next article

But regardless of how you do it you need to create some sort of system that is saving for you and investing for you automatically.

I would love to know what else that you would add to this list, you can drop your comment below.

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