Five bad habits that can hurt your finances
Some of your habits aren’t as harmless as they seem. In fact, they might be doing damage to your personal finances.
Read on to discover five examples of bad habits that can hurt you financially.
1) Not following a budget
One of the financial habits that can come back to bite you is not following a budget. A budget is a simple tool that will help you divide up your income for immediate essentials, immediate non-essentials and future goals like next year’s summer vacation or your retirement.
There’s more! A budget can help you track your expenses, spot spending problems and find opportunities to save more money every month. Living without one is a monumental mistake.
2) Not saving for emergencies
You don’t have any savings for emergencies! This habit might not seem like a problem until an emergency expense crops up. What will you do when your refrigerator breaks down or your car needs an urgent repair? What will you do when you need to call a plumber to fix a broken pipe, but you don’t have the money to pay them?
These situations are completely avoidable. You can prepare for these urgent, unplanned expenses by putting together an emergency fund as soon as possible. Dedicate a portion of your budget to this important savings goal. Every month, add that portion into your fund and leave it alone. Over time, it will become a useful safety net that you can depend on.
If your fund is still new, and you don’t have enough savings to cover an emergency expense, you still have some options. You could put the expense on your credit card, or you could try to apply for a loan.
If you’re considering applying for an emergency loan as a solution, you should narrow your online search to your state. For instance, if you live in Baton Rouge, you could check out personal loans through CreditFresh in Louisiana. You’ll know for sure that they’ll have options available to you.
3) Shopping without lists
When you shop without a clear plan, you’re bound to spend more because you’re going to forget products that you need and buy products that you don’t.
Write down what you need to buy before you go shopping. This will help you stay on track and on budget.
4) Paying bills late
Paying bills late is a habit that will force you to pay even more through late fees and penalties. Over time, the habit could also lead to a lower credit score.
One simple change can help you break this habit: automate your bill payments through online banking. The bill’s amount will automatically be removed from your account when it’s due. Your creditor will get paid, and you won’t have to worry about the responsibility slipping your mind.
5) Keeping unused Subscriptions
You have too many subscriptions and memberships to count. There is no way that you’re using all of them and getting your money’s worth. Some of them are only taking up precious space on your credit card.
It’s time to go through all of your subscription services and start cutting out the ones that you don’t use on a regular basis. Break all of these bad habits as soon as you can. Then you’ll see how your finances improve.