Just like every bad habit wasting money needs to be something we realize we are doing and find ways to fix it. Bad habits revolving around money can be a huge pain making us fall further down the debt rabbit hole owing more money than we earn, spending unnecessary amounts of money towards interest costs, have nothing saved up in our savings, and be totally unprepared for the future. What if a sudden medical emergency arises and things start racking up in medical bills or what if a storm hits and suddenly your property is heavily damaged and requires repairs? Things can happen when you're not prepared and you need the mental fortitude to make sure your finances are one of the most important things to keep in working order. So realize that these bad habits can be broken and that all it takes is some dedication on our part and making sure we are putting forth the necessary effort to stop ourselves from losing money.
Not Saving Anything
This is a huge issue many of us seem to face. We earn some money, we spend some money. But we don't ever learn to properly save up and retain enough money to keep us afloat in times of trouble or have enough to spend wisely and still have a cushion allowing us to live comfortably without worrying that we might not have enough money to cover something. If you learn to save money, place it in a high-yield APY Saving Account and learn to keep the money there instead of spending it, you'll come to realize not only would you be saving money but also be building money. It all works together nicely and you'll come to realize that what's stopping you from having enough money is yourself.
How to fix?
Start saving money in a High-Yield APY Savings Bank Account and let it sit for a while in order to gain money over time. Eventually it'll all add up and you'll be saving and building money.
Not Making or Managing a Set Budget
If you don't make yourself a budget then how will you know you'll have enough money when you need it the most? Or how will you find out how much you're spending unnecessarily towards unused trials, services, and subscriptions that you didn't even realize you had? Take some time to start jotting down what you're spending, what's it's being spent on, what you should be spending, and where money is supposed to be allocated. At the end of the day a good budget is what drives how much money you spend, save, and ultimately how much money you actually earn. So do yourself a favor and break the habit of spending without thinking about it.
How to fix?
Look over all your finances, cut out what's costing you money with no reward or benefit, and set yourself a clean and comfortable budget that let's you spend what you want on things you enjoy without making you lose money in the end.
Letting Everything Fall onto Credit Cards
Don't get me wrong, credit cards are actually a great way to actually save and even earn money in many different ways but many of us fall into the trap of letting all our finances fall onto credit cards, start missing payments or only making the bare minimum, and ultimately begin the bad habit of spending on things that our budget should have cut out or minimized. You'll eventually be spending thousands on fees, interest, and end up down a huge sink of debt. Trust me, I know it too too well when I let myself get too caught up with the attitude of "I'll just pay it later". Well that thought process of things coming "later" never truly comes except for when it's time to spend even more money that we don't even have on the next best thing that popped into our minds! So start off by realizing you're using credit cards wrong and learn how to fix it. Do your spending more wisely and make sure to pay everything off on time or at the very least the minimum payment whenever you can. Don't sign up for too many of them and definitely don't overspend on them.
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