There are some bad money habits that are to be strictly avoided. We need to understand that and get rid of them. Let’s see what they are:
Keeping Outstanding Balance on Credit Card:
Many of us have the habit of delaying credit card payment. Sometimes we buy a lot things and falter at the time of payment. It’s a horrible habit. Remember, you should minimize the use of your credit card. Because with credit card in hand often we just carried away. So don’t let this situation happen. If you have a payment to make then do it as early as possible. Otherwise interest and late payment charge can be huge.
Not Maintaining A budget:
No budget means you will have no clue as to where your money is going and how much of it is actually going. If you follow this way then no matter how much you earn that’s never going to be enough.
Do Not Follow Others’ Plan:
That means do not blindly invest where your relatives or friends are investing. Everyone has own goal and plan. You should plan your investment according to your requirement.
Purchasing on Credit:
As mentioned in the first point, buy within your parameters or else you won’t realize when these purchases add up to big amounts. Situation can get as bad that you won’t be able to pay and will have to scramble loans and more debt.
Often we complain about buying things we don’t require. There is no harm in thinking twice before deciding on a purchase, especially if it involves a big amount to avoid regretting later.
Not Planning For Rainy Days:
Always plan in advance for the ‘Rainy days’. Because you know bad times never come with prior notice so be prepared, plan in advance to avoid falling deep trouble.
Keeping Too Many Bank Accounts:
Having too many bank accounts can lead to problems. It becomes difficult to keep track of all accounts and maintain their minimum balance. You may end up paying exorbitant penalties. Close all the extra bank accounts.
Managing Investments Inefficiently:
It’s important to keep a track of your investments. Even if investments are in good avenues, if they not managed properly – you will not enjoy the desired returns.
These points will help you have a financially stable and secure life, only you need to follow them.