10 Bad Money Habits to Avoid if You Want to Be Rich
NOT ADDRESSING INCOME SPENDING RATIO
Your income spending ratio is an important measure of how much you can afford to spend on items that add value to your life. Even if your income increases a little, don't spend it all.
EXCEEDING SPENDING VISA-VIS INCOME
You should never spend more than your income. This will only lead to debt and credit card bills which can damage your financial means in the long run.
NOT PROPERLY INVESTING
Even if you feel like you can't afford to invest, try to do so from your income. You'll be glad you did!
It is essential to establish your priorities in order to practice fiscal prudence. Engaging in thoughtless shopping will only result in accumulating unnecessary items.
NOT SAVING MONEY
If you don't save enough money, you will find yourself without a financial safety net during emergencies. As the saying goes, saving money is equivalent to earning money.
SPENDING ON WRONG ITEMS
A certain level of indulgence is permissible, but spending on mindless or inappropriate items is a pointless endeavor. It is crucial to prioritize whether you truly need that bean bag or if your current couch is sufficient.
NOT PAYING YOUR DEBT
Failing to pay your debt on time will trap you in a cycle. As you continuously try to catch up with your outstanding debt, the newer dues will keep accumulating.
NO RECORD FOR MONEY INVESTMENT
Maintaining financial and investment records will keep you grounded on the path of fiscal responsibility. Without knowledge of your expenses, you will never be aware if you have fallen victim to fraud.
NOT HAVING A BUDGET
Without a well-planned budget, regardless of your income, you will consistently face challenges in managing your expenses. It's crucial to have a clear budget in place to effectively handle your financial matters and avoid unnecessary struggles.
TOO MUCH RELIANCE ON CREDIT
While we all enjoy splurging on things we desire, it is important to remember that credit cards come with high interest rates. Failing to make timely payments will result in paying a steep price.