Thursday 29 November 2018

Money Habits You Need To Break In The Coming Year

Eating your money may be just one of your bad habits!  (image)

We are all prone to a few bad habits in our life, and the reason why they are called 'bad' is because they are not conducive to a good wellbeing. Eating too much is only going to pile on the calories, watching too much television is going to turn your eyes squares and your belly round, and we probably don't need to tell you about the consequences of those other terrible habits, such as smoking and drinking an excess of alcohol.

So, to improve our overall wellbeing, breaking these habits is a must. And considering it's almost time for another new year to roll around, now is as good a time as any to get on top of them. For the purposes of this article, we will be talking specifically about your bad financial habits. As you consider your resolutions, you might want to think about the following when you're setting your annual vows.

Money Habits You Need To Break

  • Not putting any money aside into your savings. Unless you are rolling in money (not literally), you do need to make savings each month for any number of reasons. You might need money in an emergency, for example. Or there might be something you want to do in the year, such as go on a nice holiday. There is also your long-term future to think about, so you might want to break your 'live for today' mentality if that is something you are guilty of. So, if you don't have a savings fund, set yourself a target to create one. We have some ideas here to help you on your way.

  • Not keeping tabs on your finances. You need to give yourself a financial checkup every month, ensuring that all is well with the money you have coming in. This includes checking your bank statements, reviewing your budget, and monitoring your credit score. Being lazy when it comes to any of these things just won't cut it, because if you need to make changes in your financial life, it's better to do it sooner than later. So, dig out your bank statements, and look at your income and expenditure. Look for ways to cut back on your spending if you notice you are spending more than you earn. And get your free credit report from one of the credit monitoring services - check out Credit Karma reviews for examples - and if you discover your credit score needs improving, take steps to do so.

  • Blaming others for your financial situation. It's always somebody else's fault, isn't it? It's your utility companies fault for sending you those awful bills. It's your employer's fault that you don't earn enough. The supermarket is responsible for frittering away your finances. How dare they mess with your bank balance? Well, there may be some responsibility on their part, but if you're using too much energy at home, or not bothering to switch to a cheaper supplier, you only have yourself to blame. If you aren't earning enough at work, you might want to angle for a promotion or a change of career, instead of spitting venom at your boss. And if you are blaming the supermarket, you might want to a) stop piling your basket with things you don't need, or b) look for discounts and lower-priced items, or c) find a cheaper place to shop. You see, sometimes, you only have yourself to blame, especially when you don't bother to take action to improve your finances.

Did you recognise yourself in the bad money habits we mentioned? If so, do the right thing, and start to make changes. You don't have to wait for the new year to make those changes, either. You can start today, rebuilding your finances with the actions you take today!

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