What’s holding you back from achieving financial freedom?
There is a good chance you have a lot of bad habits preventing you from hitting your financial goals. Habits act as shortcuts for the brain. In return, it reduces the amount of thinking needed for doing things.
The problem starts when the habits you develop are bad ones. Bad financial habits, for example, can prevent you from making any financial progress.
To help you out, here are the top bad financial habits you should avoid:
- Spending More Than What You Earn
A lot of people develop this bad habit early on. The ease of getting credit cards is partly to blame for the prevalence of this habit pattern. It enables people to purchase items whether or not they have the money for it.
Only 40% of Americans spend less than what they earn. The rest either spend more than what they can afford or are just living from paycheck to paycheck, which is better, but only slightly.
- Ignoring Bills
You need to remind yourself that your bills will not go away. No matter how long you ignore them, you still have to pay them. Most times, the longer you avoid them, the more money you have to pay out due to the interest attached to your bill. The longer you ignore your obligations, the more your credit score will suffer.
So, the first thing that you should do to guarantee being financially stable is to pay all your bills on time!
- Buying on Impulse
One of the most harmful financial habits that you can develop is to buy things on impulse. The people who develop this habit end up in debt.
You will end up justifying poor purchasing choices and you will lose track of your budget, if you have one, to begin with. So, resist the temptation to make impulse purchases and be disciplined.
- Going for Credit Card Points
Let’s be clear credit cards and the accumulation of credit card points are not bad. If used responsibly, they can be useful financial tools.
Just keep in mind the real reason why credit card companies offer points and rewards. They are offering those so you will use the card more often. They do not care if you end up in debt.
Do not use the points as reasons for using the cards, they are not worth it. Use your card to build your credit.
- Using Shopping As a Way to Comfort Yourself
Another dangerous habit that you should avoid is using shopping as a means of comforting yourself. Using shopping as a form of therapy might make you feel better for a short period but the consequences of it will cause more problems later on.
- Only Paying the Minimum
Just because you’re making a payment towards your debt does not mean that you’re on the right track. If you’re just paying the minimum payment, you will probably never achieve financial freedom. Pay as much as you can over the longest span that you can to decrease your debt quickly!
These are some of the bad financial habits that you should avoid at all costs. Which of these bad financial habits do you possess? To further improve your financial situation, try joining The 1 Hour Work Week family! With just one hour a week, you can increase and eventually replace your income! This way you can pay off your debts even faster.
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