5 Spooky Money Habits to Avoid
Humans are creatures of habit. Sometimes our habits allow us to become more efficient in our daily lives, but often, we develop habits that create more problems than they solve. Here is a list of 5 common money habits you should avoid.
1. Failing to Pay Yourself First
Usually, people think saving money comes last. We spend first, and if we’re fortunate enough to have anything left, we’ll try and save. It’s time to try the other way around. By saving first, you’ll find yourself structuring your finances to cover bills and other types of spending, therefore, making your savings and yourself a priority.
2. Not Investing in Yourself
We can invest time to obtain healthy levels of physical, emotional, and mental wellbeing. After all, the state of our total wellbeing will affect our financial decisions in the long run. It’s important to not convince yourself you need to spend a lot of money to reap the benefits of having truly invested in yourself. So, stick to your fun hobbies and activities. If you haven’t tried finding one, you should!
3. Not Contributing to a 401k
Your retirement is the biggest thing you’ll finance in your life. With the help of loans, we’re able finance our homes, vehicles, and education. But a retirement loan does not exist. Will your pension or social security benefits be enough for you to live comfortably through retirement? If the answer is no, consider contributing to your retirement savings plan.
4. Allowing Lifestyle Creep to Kick In
Most Americans live paycheck to paycheck. Lifestyle creep is another way of saying as we make more money our lifestyle becomes more expensive too. The problem with this is no matter how high your income grows you’re bound to live paycheck to paycheck if you allow lifestyle creep to kick in.
5. Living Beyond Your Means
This is the best way to dig yourself into a hole. Living beyond your means is simply spending more money than you make. People often do this with their credit cards, but remember even if you’re trying to build credit, don’t tell yourself you always need to carry a balance. Because then, you might find yourself spending a lot more than you can afford.