Just as with any habit, money habits require discipline and dedication. The standards you set for yourself, the values you hold, and the practices you live by will have to change. It won’t be easy, and temptations will definitely be there.
The first step to solving a problem is identifying it, so here are five money habits to strike out of your life:
1. Winging It
Taking expenses as they come is a recipe for disaster. A budget gives you the necessary foresight to change your financial behavior and develop new, healthy habits. Of course, this isn’t the only way you can prepare and plan your finances to avoid surprises.
Long before it comes time to lodge a tax return online, use a tax calculator to figure out whether you’ll be looking at a tax bill or a refund. If it’s a bill, set aside money each month to cover it. If you’ll be receiving a refund, plan out what you intend to do with it.
2. Retail Therapy
It certainly is exhilarating to buy stuff on a whim just because you can. It’s important to enjoy yourself sometimes, and often a genuine need does arise, but you must learn when to say no to your shopping urges. Having the means to buy something doesn’t mean you should.
Take a day or two to consider what it will really cost you to give in to that urge. Don’t enter a shop without knowing what you’re buying, and only take the cash you’ve planned to use.
3. Splurging Your Surplus
Any time you come into some money – especially when it’s unexpected – take a few minutes to breathe. If you think of splurging the moment you get extra cash, you have a problem.
Program yourself to save or invest windfalls and surplus funds in service of your long-term goals. Every little step you make towards those goals is progress, so don’t fall victim to ‘easy come, easy go’ thinking.
4. Living the Swipe Life
Credit cards help build credit. They’re also great for increasing your purchasing power, and they’re convenient. When you consider interest rates, annual fees, and sheer temptation, however, you won’t want to lean on them too much.
It’s just a game of priorities. Instead of living the swipe life, focus on paying off your debts. Start with the one that has the lowest monthly balance and pay the bare minimum on the rest. Keep going until they’re all paid off, and make sure to only use credit cards when absolutely necessary.
5. Saving the Saving for Later
It probably isn’t your intention to sabotage yourself, but it happens. You may find yourself feeling vulnerable at times, with no financial safety net. That’s because your finances aren’t just about how you’re handling money now. Your past and future with the almighty dollar affect your current money habits, and saving is a big part of that.
Even the smallest of savings can make a big difference. But, you might be holding off on saving until you have a higher-paying job. Or perhaps you feel that you don’t have anything to save for. Whatever your excuse may be, give it up and start saving today.
There you have it! Now you know which behavioral patterns don’t serve you well and how to avoid them. You’ll do well to follow the accountability measures shared above so you can nip these tendencies in the bud as soon as you notice them. Avoiding frustration and harm is as easy as spotting those unhealthy practices and developing newer, healthier ones.
About Jammie Morey
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