Here are ten financial habits that you must give up in order to have better financial security:
1. Impulsive purchases
While an impulsive buy here and there may not have an impact on your finances but making it a habit can seriously derail your goals.
2. Wasting your credit card points
Not all rewards credit cards are bad. In fact, when used responsibly, some have their place in your wallet. Although rewards encourage you to spend more, by using rewards you may be able to save in certain situations.
3. Not keeping track of your expenses
You can easily lose track of how much money you have spent in a given period. Therefore, it is always a good idea to keep track of your expenses.
4. Delay paying your bills
When you keep forgetting to pay your bills you are spending unnecessary expenses on extra fees and charges you could’ve avoided if you just paid on time.
5. Not having an emergency fund
Life is full of surprises and if your lifestyle only allows you to live from paycheck to paycheck, you’ll have difficulty adjusting in case of emergencies.
6. Borrowing more than you can handle
If you keep on borrowing, one day you’ll be drowning in your debts and let’s just say it won’t be pretty. Never borrow just because you can or was offered. Always remember that there is a cost of borrowing.
7. Making the minimum credit card payment
If you have credit cards, you should always attempt to pay more than the minimum amount due. This will help you pay off your credit cards without having to pay large sums at once.
8. Not making a list for groceries
By making a list beforehand you know exactly what you need to buy. This may look minor but will help you save in the long run.
9. Eating out all the time
For many of us, eating out has become very common and convenient. If you find yourself eating out often, it is possible that your restaurant habit has become a major expense without you even realizing it.
10. Not having a retirement plan
Good financial habits can be pointless if you don’t have a retirement savings plan of any kind. If your employer doesn’t provide a pension plan, there are many options out there that will help you save money for your retirement.