Do you have to count even single cent before spending money? Do you think where your money goes often even with a decent paid job?
If yes, you may spend more than you should.
This article shows you 7 common bad habits make you poor despite earning a good income.
1. You Spend More As Your Income Increases
It is good to improve your standard of life.
However, if you are constantly thinking to spend your money, you may end up in a difficult financial situation soon. If you continue to spend more money, you cannot save any money.
You need to keep your expense at a constant level (ideally, you should not spend more even when your income increases). That way can help you save more money.
2. You Think It is Too Early To Start Saving
Saving money is a good habit. However, People always think that spending money at this moment for fun or happiness yet believe that it is too early for them to start saving or investing.
In fact, you do not know what will happen tomorrow. Saving money is a plan for your future. You may lose your job within a few months. You may need to pay for your medical expense. Many things can happen in your future.
Many experts say that you should think about saving before spending. You can also set a small amount of money per month to save, and then you can spend the rest.
3. Being Unclear of Your Finances
Saving money is an art. It is important to plan your financial target. You need to find out what you need to have and not to have financially. If your ultimate goal is to get financial stable, you need to have a longer plan and ditch some of your current habits.
Write down your goal and review them regularly. That can help you keep yourself on track.
4. Constantly Updating Your Phone and Other Electronic Devices
New electronic devices come in the market regularly. You should buy the devices when you need, but it is not because you want to catch up the trending in the market. When you update your electronic devices, you clearly end up spending more money on them. In the long run, you spend a lot of money on them.
5. Not Keeping A Record of Your Money
We have this idea: we know where our money comes from and where it ends up.
In fact, this is not true. We need to be aware our expense, especially the small things always become the major expenditure.
It is a good idea to keep a record for all of your income and expenses. You can have a better idea for controlling your finances.
6. Ignoring Your Debt
Debt is dangerous. It is because the interest eats up a huge portion of the debt. It is a painful truth. Many people do not know how to get out of this awful cycle and leave them with no savings.
In fact, debt has a psychological effect that works against us. It is better to eliminate prevent any kind of debts. You should make your debt as a top of the list to pay off. Record the debt, work out a plan to pay off the debt.
7. Financial Procrastination and Bad Habits
Many people procrastinate with their finance. They want to delay to pay their bills.
In fact, procrastination would leave no room for savings. It can lead to debt growth.
On the other hand, bad habits, such as eating out often, drinking, partying, etc can eat into your income and rob you off.
Ditch the bad habits, and that is the way to leave you swimming in the financial wreckage.
Also published on Medium.