While I believe tha we are trying hard to make our money keep growing, we constantly feel that our money is getting lesser and lesser in the bank. Whether big or small, some financial habits can make you broke without realizing them. With that in mind, we need to be informed about what habits might be costing you extra.
When we are focusing on our finances, we tend to focus on numbers. How much money is coming in and going out? How much can do I have in the bank this month? While numbers are equally important, your money habits are something that has a greater impact on your finances. If you find yourself occasionally stress over money, the good news is you are not alone.
1. Your App Addiction
In the long lists of things that make you broke, smartphone apps occupied the biggest portion. As smartphone apps are getting common nowadays, people are spending on buying and upgrading apps subconsciously. Those cost RM5 may seem inexpensive, but they can snowball, especially if you are buying for your kids who are constantly on the run.
Another example is that too many people are paying for a monthly subscription they never really use. You may have also signed up for a one-month free trial recommended by your friend, but before you know it, you have gone 12 months without realizing you have been paying this whole time. To solve this habit, consider only free app download or cap yourself without a monthly app budget.
2. Not Checking Your Credit Report
People with top-tier credit ratings qualify for lower interest rates when it comes to home or car loan. Not as serious as it sounds, but still, errors on your credit report can cause you higher interest rates for finance loan and lead to rejection from banks. Errors can also include fraudulent activity under your name. Someone out there could have used your name for any illegal activity. This can cost you big time! Albeit there is some paperwork to go through, but it is all well worth your time and effort in the long run.
3. Ditching Your Change
For those who do not carry a cash pouch, especially the guys, the amount of change received on a daily basis can add up to a big amount. When receiving your change, don’t just ditch your change. Instead, save them in a jar and bring them to your bank for deposit. You will be surprised at how much you can save over time.
4. Not Checking in With Your Partner
Couples who do not make the effort to check in with each other about their spending choices run the risk of bad spending habits. Experts suggest a check-in for every purchase with your partner to avoid unnecessary spending. Furthermore, double-dipping into a joint account can quickly drain things, so keeping one another in the loop is necessary.
5. Buying Groceries without a List
Those who shop without a list can effortlessly fall prey to grocery shopping “creep”, the phenomenon when you add one more thing to your cart numerous time per trip. You probably get attracted to the limited edition Hello Kitty Chocolate wrapper and can’t refrain yourself from purchasing it. Thus, having a list of what you need will keep you from running afoul of your spending plan.
6. Letting FOMO Get through You
Fear of missing out — aka FOMO — can cause you to spend money superfluously. When the world was lurching into the modern era, you need to sometimes turn off social media so that you don’t have to always have the fear of missing out. This dangerous habit will convince you that you are far behind your friends and that you need to keep up with their footsteps. The key is to ignore what others have and know that it is all right to do your own thing. You are not always going to miss out. Focus on your own money goals.
7. You’re always searching for sales
This might sound counter-intuitive, but searching for deals can sometimes backfire on you. Out of the top ten reasons for overspending, discounted items and sales typically lead to more spending than you ever need. Generally, items on sales don’t necessarily make us financially savvy, it actually makes us spend more. The ugly truth about sales is that many brands increase their prices to full retail before launching the site-wide sales for 20% off. So, do not get fooled by sales and promotions when you go shopping.
8. Keeping Up With the Jones
It used to be to keep up with the Joneses with your next-door neighbor. However, in an era of social media and up-to-date news cycles, everyone is your neighbor when you turn on your phone. Trying to keep up with appearances and their financial spending patterns is a recipe for disaster.
Bear in mind that what you see online is not always a true portrayal of somebody’s real life. Yet, our problem is we care too much about what others think of us. It often leads us to overspend for the sake of gaining some sort of status. At the end of the day, it is you and not the Joneses who have to pay your bills. So why exert yourself into something you can’t afford to buy?
9. Your Brand Loyalty
Brand-loyal clienteles are always the first to get coupons and special deals from the sellers. These people who shop exclusively for a particular brand are at the risk of sabotaging their financial plan. For example, an Apple product lover would purchase new items every time Apple launches a new product. Buying a product you don’t need is a surefire way to overspend.
10. Not Talking About Money
Many people see talking about money as a taboo topic. Depending on your upbringing, you may have been discouraged from talking about money. But these spending habits are damaging if you keep things to yourself and not asking for advice from others. Try to make money a natural and healthy topic of your conversation and prevent from hiding the reality of your situation. More often than not, people who truly care for you will tell you the truth and how to spend wisely.
You Are Where You Are Because of Your Money Habits
We can attack your bad spending money habits through education and taking actions. You may go online and read more about wealth information and find the correct ways to improve your spending habits.
What are some other bad money habits you’ve seen in yourself or others? How many times did you hit the snooze button today? Drop your comment below!