At the end of the month, many people suddenly see that they need more money until the next payday. And this often happens even to people who earn good money.
So what’s the problem? Why do so many people need more money? The answer is simple. It’s bad financial habits. David Reid suggests looking at a few of them.
You maintain a standard of living above what your budget allows.
Think back to the film The Wolf of Wall Street. In terms of spending, the main character there was exemplary; he did earn and spend a lot. But the situation with his traders was a bit different. They received excellent income but tended to spend as much as their boss. As a result, for all their good income, they became bankrupt when they lost their jobs.
In fact, many people are prone to this behavior. As soon as income increases, such people start spending more than they can afford. Even an aussie online casino real money advices to keep financial discipline. If a player manages to make a big score, there is no point in spending that money on new bets.
You use a credit card as your income.
A credit card can be helpful in many situations but can also be a big trap. It allows us to buy any number of things before we even have the money, and it can cause us to spend more than we can afford.
People often use credit cards to extend their salary, which can lead to a snowball effect in the future. After all, any debt still exists and will still have to be repaid. You can read about the nature and mechanics of credit cards here.
You make small daily expenditures without controlling them
This is especially noticeable in people who have a problem with alcohol or cigarettes. A bottle of beer after work, a packet of cigarettes. Individually, they’re all very inexpensive. But if you calculate the monthly expense, then suddenly it turns out that such small costs run up serious amounts, which are very hard on the pocket.
Many people are prone to such small expenses. To stop this spending, try writing down every payment for at least one week, even the chewing gum you buy.
You are prone to impulse buying.
We all make impulse buys; it’s just a question of scale. Adverts are piling up on us from all sides, informing us of various discounts. As a result, many people not only buy things they need but will never use in their lives or things that will go bad before use.
You need to pay your bills on time.
Everyone has bills that need to be paid for every month. For example, utility bills. They are often so frustrating to pay on time. But the problem is that if you pay for a short time, penalties start to accrue, and you must pay more. That’s why it’s better to pay these bills right away.
You don’t compare prices.
The same thing from the same manufacturer will cost differently in different places. Sometimes, the difference can be significant. Therefore, you should only buy something that recognizes the price spread. This also applies to online shopping. In one marketplace, the same thing from different sellers will cost differently. It also makes sense to compare prices online with those in your nearest shop.
You order too much food in cafes and restaurants.
The feeling of satiety does not come immediately; it takes about half an hour. And so, many people who go hungry into a restaurant think that they will eat a whole lamb and start ordering everything. But then the person satisfies his hunger, and there is still a lot of food left on the table. So order only some things at a time; order one dish and only then call more.
You waste too much electricity.
Electricity and heating are among the significant expenses of every family. Their bills can be up to 20 percent of the total family income. And in winter, that percentage can be even higher. Saving electricity is essential to control your budget. So use more insulation, replace all light bulbs with LED ones, and don’t turn unnecessary electrical appliances on. For example, if you like to fall asleep on the TV, set a timer to switch it off after a specific time.
Now you know about the most common habits that empty your pocket. And by knowing them, you can better control your spending.
