It is easy to develop bad financial habits. But when you fall into financial trouble, it is pretty hard to come out of it. A few people have enough money to buy anything that they want without giving a second thought. Most people require planning their finances and staying vigilant to keep them floating within this negative financial atmosphere. Thus, you should be aware of your unhealthy habits and things which you can do in your everyday life, which saves a little bit of extra money. You will realize that a small amount can add up to a lot well put together.
Here are some financial habits that must be avoided to save money as much as possible.
Spend more money than you make
It has been seen that most people live a life beyond their means, and this proves that they’re financially ignorant people. If you want to save, make sure you spend money within your means, rather than spend an amount that is much less than what you make in a particular month. Dip the extra money into a savings account and store it for future use.
1. Leaving home without food
When you are going out for work carry a brown bag lunch with you. If you have children, try, and give them a packed lunch from home. Food that you buy from outside is any day costlier than what you can make at home. Also, they are usually not healthy being fried and greasy. Thus, not only will you save the cost of food, but you will also have healthier food.
2. Making multiple trips to the mall
The more you go to the mall, the newer stuff you will see and you will feel like buying them. The best thing for you to do is to reduce your visits to the mall as much as possible. In this way when you go shopping, you will have a lot of necessary items to buy. Thus, your time will be spent and you won’t be left with an opportunity to loiter around the mall and check out different fancy stuff.
3. Using the same old cable subscription
To get rid of the stupendous cable bill, it’s best for you to try and compare the different subscription plans offered by different companies like Netflix, Hulu, Amazon Prime Video, etc. Day by day many subscription programs are being introduced to topple over the different overpriced programs offered by the cable and satellite companies which had established themselves before. Moreover, in today’s economy, more consumers are becoming extremely watchful about the way they are spending their money. So, try these new entertainment media instead of the same old cable to save money.
4. Visiting a supermarket on an empty stomach
This is important for more than one reason. First of all, having your stomach full helps you to think clearly and act quickly. If you are hungry you would be eager to finish off your work and go and grab a bite as soon as possible. Also, when you have a full stomach you won’t buy junk food on impulse just because you are hungry. Thus, you get to save money on this.
5. Keeping too many credit cards
If you have too many credit cards it will be difficult for you to keep track of all of them. It is quite natural that you will overspend. Hence you should have a max of 2 or 3 credit cards and pay your balances on time every month.
6. Hating a personal budget
If you hate the word budget, be sure to be in a financial mess soon. Though the word budget may seem to be like pinching your pennies, you must still follow it to get back a grip on your distressed finances. Through a budget, you can easily keep track of your monthly income and expenses and thereby monitor your monthly savings.
7. Living an extravagant life
Frugal living helps you to save more. The habit of living an extravagant life can only bring financial trouble. Once you start living a frugal life, you will have to give up on your impulse buys. This will help you save more.
8. Making only minimum debt payments
You can save money on your debt payments if you make more than minimum payments each month to your debts. By doing so, you will be able to pay off your debts earlier than usual and you will save money on the interest.
9. Borrowing unnecessary
Avoid borrowing money if not necessary. The more you borrow, the more you will be in debt. As you will have to make the debt payments, you will be left with no money to save. So, try to avoid borrowing unnecessarily.
10. Living an unhealthy lifestyle
Another important thing that you can try to maintain is health. Being healthy can save you lots of money. Again, you can use this money to save or for other fruitful purposes.
11. Planning vacations for the eleventh hour
By planning your vacation earlier, you can also save money. This will also help you bag various discounts on booking the hotel and flight tickets. Planning a vacation earlier also helps buy travel insurance much ahead of time. You can find time to shop around for various insurance offers and get the best one as per your suitability.
Lastly, the financial activities of your everyday life can be a little cumbersome if you don’t know the tricks that you can read from Daily Prosper about when to save and how to save. Sometimes the best way to stop falling into financial trouble is to find out from where it started. If you’re up to your eyeballs in handling your money, you must determine the reason that has brought you into this situation. You should always shun the bad financial habits that lead to no savings and recurrent financial trouble.