Everybody wants to be rich. If not rich, at least, everybody wants to be comfortable and financially independent. In truth, not everybody will end up being rich, not because certain people are not destined to be, but because of the mindset they possess and the habits they have developed. Yes, there are habits that prevent people from becoming financially independent and keep them poor. We are going to be telling you 6 of those habits today, so you can avoid them and be mentally and financially free.
1. Thinking it’s too early to start saving
It is very easy to assume that it is too early to start saving and spend all your money instead. Young people are usually victims of this habit, as they are vulnerable to spending to all their income on the various pleasures life has to offer. So they just decide to spend first, then save later and this style does not always work out.
On the contrary, savings should come before spending. According to experts, when you earn, keep a percentage of the income aside first for saving, then go on and spend the rest.
2. Not keeping a record of your expenses
It is normal to believe that you have absolute knowledge of how you earn and spend your money. While the major expenditures may be clear to you, there are still some small expenses that you make and overlook that eventually end taking a toll on your income.
So it is best to have a record of your expenses- what you buy, the services you pay for- this will help you keep a track of your money and control your finances.
3. Ignoring your debts
In today’s world, interests eat up the majority of most people’s money. It is a painful reality and a cycle that most people still do not know how to leave. They keep on borrowing and leaving very little or no savings for themselves at all.
Make paying all your debts a priority in your to-do list. Draw a plan and stick to it, no matter what. Then, sit back, relax and watch you break free from the shackles of debts.
4. Lack of good budgeting
No matter how well you keep the record of your spending, all the efforts are going to be in vain if you do not have a good budget to keep you in line.
From personal experience, budgets help you spend right and make a huge difference in your financial life. In the absence of a budget, you will most likely spend your money on unnecessary things and have very little savings at the end of the day.
5. Not making plans for the future
Most times, the escape route people find for problems is ignoring them totally. Sadly, this same mindset is usually applied to financial matters. People spend all they have on the present while believing that the future would take care of itself. Then when the future eventually arrives, they start running around for a way out. This is why many people do not move above the financial level they are in.
While spending, always find a way to keep some for the future too, either by budgeting or by saving.
6. Increasing your expenses as your income increases
“More money, more problems”- this saying is not always true and have mis-led a lot of people. It is fine to want to upgrade your lifestyle every once in a while, but if you’re constantly looking for what to spend your money on whenever you get an increase in income, you would soon find yourself in a difficult financial situation.
Try to maintain constant expenditure while looking for ways to increase your income. This will surely lead you to financial success.