Course Correction: It is Never Too Late to Change These Bad Spending Habits that Most of Us are doing
Imagine a world where you can pay for taking that perfect vacation, pay for Junior’s college, and give despicably to people in your community. It’s a nice daydream, but all of these need enough money. The great news is that it does not have to stay a daydream. Changing the course of just a few bad financial conducts could put you on the way forward to turning those wandering dreams into reality. After all, our daily choices add together over time. Making a few good decisions time and again will set you up for longstanding success. Here are some common spending habits all of us have and some tips on how to set good habits.
- Expenses Without a plan
If you do not have a monthly financial plan, your money will evaporate and you will not even know where it went. You will be like any other newbie going to the job: penniless. Too many people survive on more than they make and utilize credit cards to protect the difference. But when you have a plan prepared to live on below you make and save for a rainy day, you become a sure win.
- Paying for Convenience
Swaying by a coffee shop to pick up a cappuccino on the way home from work may not seem like a major concern. But when you are paying for suitability all the time, you are letting your money slip-up between your fingers. Using your food envelope to eat out as you run from vow to vow is one thing. But dropping mere money on junk food every night without planning for it will make your eyes bug out of your head when you start computing receipts for the month. Next time, reflect the opportunity cost of all those cappuccinos.
- Not Tracking Spending
You probably do not need to use a pencil and go to town on your cheque book ledger. That is if you even have an archive. But our rapidly growing society, complemented the rise of the digital era, makes it the easiest thing to spend money, and then forget where it flew. So while you may not use a rag cheque book anymore, you should always stay lying on your account balance. Losing record of payments you have arranged can come back to intimidate you.
- Impulse Purchases
You already know unprompted purchases are bad news for your balance sheet. But there is more to it than just the stats. A recent survey found that almost half of the people have made an instinctive buy, and almost half experienced purchaser’s regret afterward. Looks like that ancient saying is true: Money cannot buy happiness, in any case not on impulse. Stay away from these impulsive purchases, for the sake of your own budget and your after-shopping guilt. Sometimes, making purchases out of happiness, sorrow, anger may cost you a lot.
- Credit Cards Only
You should use cash or the available cash in your debit account to make day-to-day purchases like foodstuffs, fuel, clothes, and theatre. The plea of credit cards is the skill to pay later for items that you purchase now. The warning is that you are less likely to wage your credit card bill for items that you have already consumed, which most usual purchases are. Using credit instead of cash is a failing, especially when you do not pay your credit card bills in full on a monthly basis.
When it comes to expenses, many of us stress about our bigger purchases. But you might be amazed to know how much your smaller spending habits are actually breaking you. From buying mineral water bottles to purchasing posh accessories, from subscribing to unnecessary means to purchasing ridiculously priced gift articles; these are the tiny spending habits that may actually be hurting you and your account balance.