Warning: These Bad Money Habits Can Seriously Hurt Your Life

We all suffer from bad habits, but when they involve your finances, you are at risk of ruining your life. Seriously! Debt isn’t too far away, and that can affect both your physical and emotional health, with the stress and worry that comes from being in the debt-trap. Your life chances will also be affected - want a holiday, a new car, or a change of home? Forget it; if you are guilty of any of the following money habits, you can say goodbye to both your wants and necessities in life. Sorry to put a downer on your day, but the truth hurts. These money habits can hurt you in the long run.

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Bad Money Habits

Spending more than you earn. If you haven’t budgeted properly, you are going to run into trouble. It doesn’t matter if you are impulse spending or paying out your regular bills, if you can’t afford it, you will get into financial difficulties. You may then be tempted to take out a loan or a credit card, and that is very rarely the solution. Our advice: start budgeting, quit spending on things you don’t need (unless you have the means to afford them), and use comparison sites to bring down your household expenses. 

Dipping into your savings too often. If you already have a savings account/tin, then good for you. That is a most excellent and wise thing to do - it’s a good money habit! But if you are dipping into your savings for unnecessary purchases, such as the occasional takeaway, then you are losing your future spending power. Your savings should be there for when you need money the most or for a long-term goal. Regularly dipping in, even for the smallest amounts, will ruin your future plans. Our advice: Put your savings into an account where it can’t be touched, and/or set up a separate fund for the inessential things in your life. 

Paying for things you don’t use. Do you have a gym membership but never actually visit the place? Are there magazines you subscribe to but don’t actually read them when they land on your doormat? Are you paying for a tv streaming service but never sit down to watch anything? Then why are you paying for them? Our advice: Cancel any subscriptions and memberships you aren’t using, as they are taking away a valuable chunk of money that can be used on something you will make time for. 

Making late payments. Ever wondered why your credit score is so low? It may be because you are making late payments. Whether it’s a utility bill, your landlord, or a credit card and bank loan, you will suffer the consequences if you regularly miss payment dates. Our advice: Automate your payments, so you aren’t liable to forget them, or set up a reminder on an offline or online calendar so you are prompted to pay up in good time.

By adhering to these bad habits, you are putting yourself in jeopardy. To prevent hardship, we recommend you read our money rules, especially written for those of you who are financially challenged. And if you are guilty of these (or any other) bad money habits and have found yourself in debt, we recommend you get help from a debt-charity to help you get back on track, and we also recommend you find a debt consolidation loan to help you manage your loans and credit cards. 

Money is great when we have it, but problematic when we don’t. Avoid the bad money habits we mentioned, as your financial future depends on it!

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