Common habits that can keep you poor. There are some common habits that can keep you poor. You may have a consistent revenue but still struggle with your finances. You cannot manage your finances properly. Sometimes we cannot put the finger on the culprit responsible for holding us back, bad money habits. It could emerge that we are responsible, or our practices are responsible for keeping us in a state of poverty or poor finances. Those habits are often so profoundly grounded that we are not even aware of them; we do them automatically. Having lousy money habits can tremendously negatively affect your life. Identifying and knowing those bad habits will significantly improve your finances and your life. Here are a few practices you may have that keep you poor.
1.YOU ARE NOT ON TOP OF YOUR FINANCES Many people do not bother to properly manage their finances. Providing that they have income coming in, they will just keep spending. They have no idea of what they really spend. They do not take inventory of their spending. and this is a common habit habit that can keep you poor.This is a big mistake to avoid. You should know exactly how much you are getting into your account and how much you are getting off. That way, you can prevent overspending and avoid paying unnecessary charges such as overdraft fees, late payment fees.
2. YOU DO NOT PAY YOURSELF FIRST Another bad habit to avoid is not paying yourself first. Many people who want to save money and be financially independent overlooked this habit. They tend to save the money they have left after paying for everything else such as bills, rent, treating themselves…and most of the time, there is money left to be saved. They should be doing the opposite, meaning directly keep a portion of what they earn; the amount will depend on you, usually 10%, in a saving account, then spend the rest on bills. This will prevent your expenses from expanding, to only stick to what you have.
3. YOU ARE KEEPING UP WITH FRIENDS WHO HAVE EXPENSIVE TASTE OR FOLLOWING BEAUTY GURUS You may have friends who always want to go out to spend on expensive restaurants, shopping rant, travelling with them. They usually have more considerable means than you. In this case, you have to be honest with yourself and tell them the truth about your finances because keeping up with them will put you in great financial difficulties. Not only you will not be able to keep up, but you will end in debt. People have different tastes as well as very different budgets. So, trying to keep up with everyone around you will leave you broke and in debt. The same goes for following beauty gurus on social media, who continually advertise news products and services; you end with things you do not need, all for the sake to be trendy.
4. YOU ARE NOT PLANNING ENOUGH, AND YOU BECOME COMFORTABLE WITH DEBT Planning things ahead can help you avoid a whole lot of charges such as late payment fees, overdraft charges, …. Waiting to do things at the last minute is often costly. Not planning ahead means being unprepared or not well prepared most of the time. This happened when you overused your credit card; you do not precisely know how much you are spending. Be careful when you put all your payment through your credit cards; you end up paying most of the time more interest charges. If you chose to make your payment through a credit card, make sure to have the cash and always put back what you spend. The money you own on your credit card is debt, do not be comfortable with debt, avoid it whenever possible.
Common habits that can keep you poor. Certain habits can unknowingly keep you poor, such as the ones cited above. Some other ones include paying full price for items, being a die-hard trend follower. Getting rid of those habits will undoubtedly improve your financial circumstances. Can you think of some other habits that can keep you poor? Would you please share your ideas in the comment box below?