Have you ever felt confused where all your money goes at the end of the month? Does the word ?Spending? look brighter than the word ?Saving?? Are you lousy when it comes to managing your money? Well, this list will help you figure out what financial blunders you?ve been making all this while, assuming them to be just little bad habits you can?t seem to get over.
- Emotional SpendingI broke up with my boyfriend, so let?s go shopping and buy over-priced clothes to feel better. Of course, shopping can fix almost anything these days, what big deal is broken heart. Everyone has ups and downs in their lives, but you need t control he temporary impulse to spend, just to make yourself to feel better at that moment. This rush doesn?t solve much, instead leaves you with pending credit card debts and huge unnecessary bills. Try unsubscribing from most of these shopping catalog lists, so that you aren?t receiving updates on latest offers and sales. Every time you are overshadowed by a sense of anxiety, instead of calling up a friend whose idea of mourning includes shopping, call up real friend and sort out your problem. Grow up and deal with life in a mature manner!
- Credit Card DependenciesDESTROY THOSE CREDIT CARDS TODAY!
Those little plastic pieces are sucking in all of your income, and leaving you with debt scars! Because every time you swipe your credit card (and you not have adequate funds in your account), you are creating a debt. And every time there is debt, you are paying enormous interests to cover-up the debt holes, which prevent you from building wealth. Start using debit cards. Debit card allows the holder to purchase an item according to the current bank balance and holds your feet to the ground, and keeps you within your budget.
- Cigarettes and LattesEvery cigarette pack costs you 20$ and every latte costs you about 4$! If you are addicted to even one of these things, you are spending more on cigarettes and latte than you spend on grocery every month or your car insurance. You may die of debt before you die of actual cancer! So quit smoking and learn to make yourself a good cup of coffee instead.
- Not having an emergency fund or a savings accountHow difficult is it to save a small percentage of your income every month? Living without an emergency fund is like living without a health insurance, you are bungee jumping without any safety nets; if you slip, you lose your life. The money you save helps you in inevitable emergencies.
- Not having a monthly budgetWhen you start preparing a personal budget and start maintaining a record of all your expenses, you tend to become more respectful and responsible towards your money. A budget forces you to set some goals, spend and save as per those goals. So the next time you are tempted to buy yourself those brand new dress on sale (which don?t fit your budget by the way), your freaky money senses will become active and you will be reminded to put in that money in your savings account instead, for the new car you are planning to buy.
- Lending money or always picking up the checkWhile it is really nice of you to help a friend in need, or you may feel proud when you pay for the dinner, but if you d it once, your friends may expect you to do it again. People who pick up the tab on a regular basis find that their friends or family members begin to expect such treatment. This strains your bank balance, as well your relationship. There are always other ways to help your friend and sometimes it is okay to let some other person on the table to get the check.
- Keeping active subscriptions of services you don?t useUnsubscribe to the gym you don?t go to or the TV channels you don?t watch. Why should you spend your hard-earned money on services you don?t even use? Cut a few subscriptions.
Improve yourself, improve your finances!