Bad Monetary Habits That Are Rendering You Broke: Break these Habits ASAP!
It's time to steer clear of credit card debt, extended warranties, and crypto.
Developing positive financial habits and curbing the bad ones is just as crucial as getting adequate sleep and brushing your teeth. An incredible way to begin involves identifying your bad money habits and swearing by a plan to eliminate the poor spending and saving habits. Check out some common bad financial habits you should curb to ensure greater savings.
Using credit to pay bills
Credit comes with a high cost, and if you fail to use it properly, it can become a trap! If you use credit to afford basic expenses like rent or food or are using it to make mindless purchases (like new clothes)—you should consider changing that habit. While it may seem desirable to depend on debt for education expenses, a mortgage, or a property—it is essential to make carefully laid plans. Using credit cards to pay bills is a BIG no-no!
Spending more money than you make
Spending more money than you make should be viewed as a cardinal sin. This habit can have a trickle-down impact on your finance—causing bigger problems in other areas associated with your personal life and its quality. For example, if your expenses surpass your monthly income, you will be forced to depend on credit to meet all your expenses. The credit interest will trap you in debt—and as a result—you might get stuck in a vicious cycle where you spend more money than you make.
Fear Of Missing Out, induced by cryptocurrency
You have to eliminate the FOMO on cryptocurrency. Your habit of purchasing crypto will never come without risks. Numerous giant crypto companies crumble down each year. Investment in crypto is extremely speculative and may be financially catastrophic for inexperienced investors.
Automating your bill payments
Automating your bill payments can be an incredible way to avoid missing payment dates and stockpiling late fees. But if the inertia sets in, you might end up spending money on subscriptions you never use. The monthly subscription fee may seem affordable—but when many services add up, it can drain your money. For at least a month, consider keeping track of what subscriptions you use to listen, read, or watch on TV and other devices. If you are subscribing to a streaming channel to watch one or two shows, consider if you want to continue paying for it. It is good to have autopay—but it can backfire if you forget about it—adding up monthly charges for services you don't need or use.
Paying bills after the due date
Paying bills after the due date is a bad habit. Every time you miss your payment date, your credit score will suffer, and you would have to pay an additional amount on interest charges and late fees.
Get more financially organized and eliminate these poor money habits to save for a more secure future.