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Bad Financial Habits to Break Before the Year Ends


As 2017 comes to a close, it’s time to turn over a new leaf and get rid of all sorts of bad habits, financial habits, included. From spending more than you earn, unnecessary and impulsive purchases, taking from your savings, making late payments, not tracking your expenses, and not putting money to the side—all those money mistakes you’ve been guilty of this year must come to an end.
If you want to be financially stable in the future, then having good financial habits should start now. Not to mention, be caught up in money woes should an emergency arise.
Start preparing for your future by taking control of your expenses. Here are some bad financial habits you need to break before the year ends:

  1. Spending More Than You Earn

You are spending more than you earn if you have a little money left at the end of the month.
But, you can put an end to this habit by budgeting your money to make sure that your income covers all your expenses, while still having some left for savings and probably for personal expenses like shopping and entertainment.

  1. Spending from Your Savings

As much as possible, avoid touching your savings unless it’s an emergency. Try to control yourself and stay away from making expenses you can’t manage.
As soon as you get your salary, immediately put some money into a high-interest savings account so that it would be easier for you to control your expenses.

  1. Not Tracking Your Expenses

While controlling your expenses is already difficult, just think about the hassle of tracking all your purchases. From visiting convenience stores, getting your daily dose of overpriced coffee, doing groceries, and taking Grab or Uber, these “small” expenses can pile up and burn a hole in your pocket.
But by tracking everything, you get to see where you are spending the most and where you need to adjust. Make this task easier by downloading spending trackers on your smartphones and use these to evaluate your expenses to see what unnecessary costs you need to cut down.

  1. Making Unnecessary Expenses

Instead of buying lunch from your favorite fast food, why not bring packed lunch instead? This is not only good for your health, but for your wallet as well.
Aside from food, you may also identify which items or expenses you can avoid and replace with cheaper alternatives such as your phone line, cable TV subscription, and that gym membership that you don’t use, among others.
Basically, have a look at your monthly expenses and ask yourself if you need it. If you don’t, then cut it out or find a lower price for it.

  1. Not Saving a Portion of Your Salary

The most important habit to break is not saving a portion of your salary. Break this routine by automatically transferring at least 10% or more to a savings account.
Try not spending your money until you have put aside some money. This is one of the best ways to building good money habits for your future.
Enter the new year with a fresh start and leave all those bad financial habits behind to achieve financial success. Last but not least, don’t forget to pay all your debts before the year ends. Consider an online pawnshop to ensure that you don’t have to worry about debt in the upcoming year.
Start changing your habits now and prepare for the future!


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