Updated: Apr 20, 2020
Ever heard of that saying ‘New Year, New Me’ – well 2020 is no different.
Well perhaps it is – we’ll be saying 'New Decade, New Me' instead. It’s time to ditch those bad money habits before they become your downfall in 2020. But what are those bad money habit, we've listed 4 of the most common money habits below.
Spending more than you can afford with the help of credit cards
If you’re living paycheck to paycheck, you can often forget that a credit card is not your money.
An easy habit which can develop is the imbalance of outgoings and incomings i.e. you’re spending more than you have coming in and can afford and relying on credit to bridge the gap.
I used to not write down where I was spending my money in the hope that was ignorance was bliss. How wrong I was. Budgeting is an essential step of understanding your finances, planning your finances and making change.
As dramatic as it sounds, not having a budget, sets you up for failure.
I for one am very guilty of this.
Picking up everything when sale shopping, buying all the supermarket when you’re shopping on an empty stomach. Name an item I don’t, I have probably bought it before. Impulse buying adds up over time, and not to mention the extra stuff you accumulate that you need to store.
How do you stop impulse spending?
Having a purpose whenever you go online to buy something or venture into a store, writing down exactly what you want is a great way to stop your eyes from straying.
Dipping into emergency saving funds when not needed
It’s understandable, a financial emergency comes up, you go to your savings amount in order to help a bad situation.
We’ve all been there and that’s what emergency funds are there for, right?
However sometimes it can become a 'go to' source of funding for the non-emergency expenditure activities like a night out or a handbag, which means the wholesome three to six months-worth of expenses you have saved get depleted over time.