5 worst money habits to avoid
Here are some of the worst money habits to avoid to gain financial freedom.Some people generally have a bad habit when it comes to keeping money, saving money, spending money and managing their finances.
With these habits people can have a lot of money with them at the start of the day but at the end of the day they would not really be able to remember what we used the money for or do you want to realise they have totally wasted your money on some unnecessary stuff.
People with these types of habits would generally not be able to point out anything valuable to use they spent their money on.
This might be as a result of some habits or behaviours they have been living with over the years and have generally not considered these habits to be bad.
The best thing about changing a person’s bad habit is the person’s ability to realise how bad these habits are and how they affect the person’s life, productivity and general well-being.
Below are some of the worst money habits that might be affecting your pocket
money habits to avoid: Not Doing Stuff Yourself.
A lot of people tend to spend money on stuff, items or services they could do themselves but for one reason or the other they would look out for someone to offer them these services at a very high price.
This means some people generally pay exorbitant prices for services they could have done themselves.
One might argue that having someone to assist you with this kind of services would help save time and that time is some money.
This is totally true but for someone who is trying to save money, this might be considered as a “not so good choice” especially if that person pays for a service he or she could have done easily .
There are also some people who do not even attempt to solve the very little problems they are faced with but they want to be quick to call somebody who would charge exorbitantly for that simple service which they could have handled themselves.
money habits to avoid: Buying a home too Early.
Although owning or buying a house is a very good investment it also comes with some negative effects on the fire.
When you are able to buy a house or simply on a house you would totally avoid paying rent. You can even rent your house out or just a portion out to earn passive income.
This strategy has been practised for so many years and it has proven to be one of the greatest investments anybody can make.
On the other hand if you do not put some things into consideration before you buy a house you might end up regretting or even spending more money than when you were renting.
For instance a person might think they pay £1000 for rent and be able to get a mortgage that would require them to pay that same amount per month.
That could be a good deal don’t get me wrong here, what I’m trying to say is that if the person buying the house only has £1000 to spend on his accommodation cost he should not go in for a multitude of that same amount since owning the house would come with extra taxes or expenses in general.
In this instance the person might end up paying for the £1000 mortgage a month but may be faced with extra expenses that could cost about £200 a month.
If that person cannot afford the extra £200 then buying the house wouldn’t be a good deal. And the person would have a £200 burden each month unless he gets an increase in his overall income.
For this reason this could be a bad habit that would cost you more and to avoid this completely a person must take into consideration all the hidden and non-hidden expenses when it comes to owning a house.
money habits to avoid: Impulse buying
Another worst money habits is impulse buying.
An impulse buyer may spend if not all bad to most of them money buying items they may not need. Sometimes the worst thing about impulse buying is that person might not remember exactly how he or she spent their income.
For someone who is trying to develop a good money habit or even save more impulse buying is one of the worst things that could ever happen.
If you’re trying a good money habit, avoid impulse buying completely and you would definitely notice the difference.
money habits to avoid: Unnecessary Borrowing
One of the worst money habits A person can develop is the person’s unnecessary borrowing habits.
People must note that borrowing money must only be for what is necessary not what the person wants.
If people are able to distinguish between the needs and the other ones they would not to go to the bar extent of borrowing money to fund their wants
If people with unnecessary impulse buying habits continue with this bad habit, they could end up in so much debt.
But unfortunately, most people in so much debt do not easily come out of that situation.
To be able to overcome the habit of impulse people must be able to separate their needs from their wants. And they must always spend on their needs first.
money habits to avoid: Lifestyle Choices
Sometimes the choices we make can influence how we spend money, earn money, keep money and save money.
This post is not to disrespect anybody’s choices concerning your lifestyle but this post is however given instances where some of the choices we make can go a long way to affect our finances.
A typical example of some lifestyle choices that may affect us in the long run may be our eating habits.
Sometimes people decide to spend more money buying all ready made food than to spend less on home cooked meals. There is absolutely nothing wrong with buying food or eating out but as the saying goes too much of everything is bad this might not be in terms of the food quality but this is in terms of the cost of the food.
If a person continues with habits like this for a very long period, that person would be spending a lot more on food and then someone who cooks that food at home.
Sometimes because of peoples busy schedules they may always prefer to order food and get it delivered to them.
There’s nothing wrong with this but people should note the delivery comes at an extra cost and if you want to consistently do this for a prolonged period, you would be spending more for a meal that was bought for a very affordable and moderate price.
There are other lifestyle choices that affect our money habits and people should be able to tell which habits are costing them more.
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