In this article you will know the bad financial habits that are slowly ending your future.
Through my research on the habits of the rich, I have been fortunate to accumulate a wealth of information about the bad financial habits that keep us from being financially free.
Below, find some of the most common habits that keep you from learning how to earn money, keep you without savings, without money at the end of the month and worried about your future.
Leave these 14 bad financial habits if you want to have a better future.
1. Charge your daily expenses to your credit card.
If you are unable to cover your ordinary expenses and must resort to the help of your credit card to pay for transportation or food; you are living beyond your means.
Accumulation of credit card debt is the third leading cause of bankruptcy, after job loss.
Also read: How to change bad habits for those that will make me successful.
2. Spending more than 25% of your net income on housing costs.
This includes rent, mortgage, taxes, insurance, repairs, maintenance, and services.
3. Spend more than 15% of your income on food.
This includes what you spend at the supermarket, but not what you spend at restaurants. This part of the budget should be allocated to entertainment.
4. Spend more than 10% of your income on entertainment.
This includes bars, restaurants, cinema, etc.
5. Spend more than 5% on the expenses of your vehicle.
This includes gasoline, bank loans, insurance, repairs and maintenance.
6. Spend more than 5% on vacations.
Keep in mind that vacations do not necessarily imply leaving the country. It includes the expenses of any trip to this item. Like going with your family to visit a nearby town and staying there for a few days.
7. Spend money in casinos.
If you are going to have fun in a casino you should count this as your entertainment money.
8. Spend more than 5% on clothes.
A considerable number of people in my studio look for cheap clothes. Nothing pretentious. Well, they don’t think it’s necessary.
Also read: 7 habits that will inevitably make you fail.
9. Spend spontaneously.
This is one of the most common and most harmful financial bad habits.
You need to separate your emotions from your spending habits. There is always time for you to plan your purchases, so that you shop wisely.
10. Not having a savings strategy.
If you do not save systematically it is impossible to save enough money to invest and be financially independent.
That’s why it’s important to learn how to save.
11. Taking risks without education.
When the rich invest, they do their research carefully. They study, ask and evaluate. Those who invest without education; They base their decisions on their emotions or the opinion of family, friends, and co-workers.
Investing in this way is taking unnecessary risks, which in most cases end in heavy losses.
12. Eat a lot of junk food.
According to research conducted by the United States Department of Agriculture, eating healthy ends up being less expensive. Long-term poor diet leads to heart disease, diabetes, and cancer.
13. Buy for the joy of doing it.
These people give in to instant gratification, spending on things like televisions, expensive cars, or luxurious vacations.
The worst thing is that these types of buyers usually spend more than they can.
14. Confusing frugal spending with buying cheap.
Buying cheap means looking for and paying for the lowest priced product on the market. This is considered a bad habit among the rich, because quality is not taken into account at any time.
Conversely, frugal spending is buying quality products at good prices. The rich prolong their purchases until they find a good deal.
Purchasing poor quality products ends up being expensive in the long run.
Conclusion.
If you don’t break bad financial habits, you are slowly attacking your future. Since you will not be able to have the capital to invest, which will make it increasingly difficult to achieve your financial independence.
Finally, I hope this information has been of great help to you 🙂
And remember, if you are really interested in creating your own business, you can purchase our book “How to create a company while working: Discover how to manage your time, manage your money and motivate yourself while creating a company and working for another” , where you will find all the information you need to found your own company, without having to leave your job.
