We are what we repeatedly do. Our habits make us!
Why not attempt to fix the ones that are not so beneficial in the long run? Maintain good relationship with your money by fixing these common bad money habits. Do not wait until they become too heavy to be broken. Here we listed out a few that needs attention.
1. Spending All Your Earnings
If you are leading a life, spending as much as your earn or more than that, chances are that you would lead a future life with credit card debt. The best way to fix this habit is to practice living below your means.
2. No Savings Goal
Saving is a habit that gets easy if you have a clear set of goals. Create clear saving goals with purpose. Get a plan in place and work towards achieving it. Gradually, saving becomes a habit, resulting in the accumulation of a huge corpus in the long run.
3. Late Payments
Making timely payments would help you avoid late payment charges, besides improving your credit score. Set up an automatic online payment mode for fixed payments like insurance, the internet, etc. For payments that cannot be made online, set up reminders and ensure that you clear them on time. Avoid making minimum payments on credit cards, instead make the payments in full every month.
4. Postponing Investments
When it comes to investing, time is the essence. If you are waiting to accumulate a lump sum to invest, it is of no help. Understand the power of compound interest and start investing early, even if it is a small beginning. Get the right advice on investments with online advisory firms like ArthaYantra. Right decisions would take you through the road to the desired destination.
5. Ignoring Insurance
Do not ignore insurances. Your regular premium payments towards insurances would be a big help during emergencies. Else, you may end up borrowing debts and be wiping off the savings in a go.
6. Not Prioritizing Debt Clearance
Non-prioritization of debt clearance based on the interest rates does not allow you get out of your debts. Rank your obligations, prioritize debts from highest to lowest interest rates and clear them off. This habit enables you to pay less over the long run.
In a nutshell, practice good money habits and ditch the bad ones. Do not ignore your financial red flags. Fixing the bad money habits would enable you to rest assured for the rest of your life!