All of us not born with good financial knowledge. Money Management and its habits is such a skill that one develops with experiments. Their are lot of Bad money habits that make you poor. That makes your money management fail.
No matter in what area you are in life you have to be always ready to develop the good habits and leave the bad ones. If you are struggling with money management problems then no need to worry. You can come on the right track.
Below are 5 Bad Money Habits to need to get rid off
1) Spending More than you Earn: This problem is the sin in managing your personal finances. For instance, if you spend more than you earn you’ll have to rely on credit to cover the rest. The credit comes with interest and traps you into debt.
You continue spending more than you earn creating a bigger, more vicious cycle. You can do two things here either you cut your expenses and make a budget or you have to focus on making more money.
2) Paying bills late: It’s a bad habit to have but happens to even the best of us. When you pay your bills late your credit score takes a hit and you could cost yourself more money in late fees and interest charges.
Make it a habit of always paying your bills on time. If you’re the type of person who simply procrastinates with tasks like this consider enrolling in auto-pay. It also means you probably need to get financially organized.
3) Not Having an Emergency Fund: An emergency fund is something you build by allocating small sums regularly. The idea is to have a provisional fund that can cover you for at least 6 months to a year. You may feel like you don’t require such a provision, but it is crucial to have an emergency plan.
This will take care of you in case of unexpected expenses or emergencies and keep you from digging into your savings or taking on unplanned debt.
4) Not putting your money to work: If you are not in the habit of investing, you might want to change that. Contrary to popular belief, investing isn’t just for the wealthy, it is for everyone. You don’t require large capital to start investing. You can start with as little as Rs 500 every month.
The thing about investing is that it will build wealth for you over time and also teach you a thing or two about being smart with money. You will learn discipline, patience and above all, be rewarded for your efforts.
5) Blaming others for circumstances: “Life isn’t fair.” It’s a phrase we’ve all heard before and one we’ve likely said to ourselves. And it’s completely, 100% true. We’ve all been born into different circumstances, some of us having many more opportunities than others.
While “life isn’t fair” is true, blaming other people isn’t going to help you – at all! Accept where you’re at and play the cards you’ve been given. Only compare yourself to yourself.
Like any new activity, this too will take time for you to master but the important thing is that if you stick to it and make small changes daily, you will see the results over time.