Getting rid of bad money habits is by no means a cat's cough. Regardless of whether they are the result of upbringing, lack of knowledge or a symptom of a stressful period, they usually bring a lot of unrest and uncertainty into an individual's life. And they often undermine even firm decisions about savings and moderate, rational shopping. While knowing your bad money habits won't make your temptation any easier, acknowledging and understanding the problem is the first step to overcoming it.
Emotional shopping
One of the more common bad money habits is emotional shopping. Although shopping as a means of managing crisis periods is commonplace these days, it all too often turns out to be problematic. The first reason is pretty obvious. When we are in emotionally unstable state, we stop thinking for ourselves and are more susceptible to the suggestions of commercials, which often prey on just such victims. The result is that we thin our wallets by as many centimeters as we can afford. Another reason why emotional shopping is problematic is that this approach to the problem actually does not solve the problem in the least. It is just an escape from facing the real problem, which is still patiently waiting for us later with the additional weight of wasted money. How to stop emotional shopping, is easier said than done in practice. But practice makes perfect. Put something on basic rules, which you never allow yourself to break. Only buy things that are on your wish list (which, of course, you do during an emotionally calm time). Or, before buying, allow yourself 24 hours to think about whether you really need that thing.
Lending money
Solidarity is an admirable quality. But you have to be careful when lending money careful. Especially when you lend to friends or relatives, as complications can lead not only to the loss of money, but also to loss of friendship. Before you lend someone a large amount of money, try offering alternative solution. For example, if a friend lost her car, offer her a ride to work instead of a loan. However, when you do lend money, only lend it as much as you might miss.
Paying joint bills
While it's okay to invite friends and family over for drinks or dinner every now and then, don't make it your habit. Not only can it happen that after a while friends will begin to take such an action for granted (and then getting out of this iron shirt will be even more difficult), but overdoing such actions creates imbalance in relationships.
Comparing your financial situation to others
In today's world, we make money quickly and measure our success, if not our happiness, by the size of the house and the number of horses in the car's engine. We do all this, of course, in comparison to others. If we have better things, we think we are actually better off. But even if we leave aside the philosophy that money doesn't buy happiness, we are left with another problem with such measurement. Big houses, swimming pools and fast cars are not an indication of how much money someone has, but only how he chose to spend it. Anyone who forgets this can quickly become embroiled in a race of whose grass is greener. This can lead to increasing indebtedness and decreasing happiness. Only buy things that are important to you - and only you. Proving it to the neighbors is pointless.
Use of all proceeds
We all have bills to pay and necessities to provide. But with the money that remains, we decide for ourselves what we will do. The decision to waste everything is by no means rare among people. But that does not mean that it is also the most rational. They are very important savings and monthly income spending limit. Assemble financial plan, which will determine in advance how much you can spend, and how much you will save for harder times.
READ MORE: Sweatcoin - an app that pays you for every step
Excessive use of credit abbreviations
If you are a regular credit card user, consider is it worth it. Not only is this type of payment very expensive, but it also makes you feel like you have more money than you really do. Don't make purchases with credit cards unless absolutely necessary. Stick to a financial plan and realize that when there is an alternative, credit cards are only unnecessary expense.
Closing the eyes
If you don't check your account balance, you may be turning a blind eye to the truth. But even if you have your head safely in the sand, sooner or later trouble will hit you on the unprotected back. That's why it's better as soon as possible face the inconvenience, as it is still possible to solve them early enough.
