We need money. And whether you realize it or not, we need to use money whatever and wherever we go. But let’s face it! There are just times that we tend to spend money more than what we earn. Moreover, we have this certain habits that keep us from saving money for our future. Perhaps, we just don’t realize that we are already giving into our temptations, especially when we want to buy something.
Some of us here even have bank loans just to avail such product that they really want. And if you are not careful enough on the things you spend with, then this might be one of your financial troubles one day. And I’m sure we all don’t want to go down to such path, right? That simply means, if we want to break through our bad habits, we should have the right discipline to change it. Yes, this might be a challenge for all of us since spending money is such a temptation.
And if you are one of those people who are guilty in doing bad habits when it comes to their money, then below are the things you SHOULD NOT do. Again, discipline!
1. Using out-of-network ATMs
Sad to say, a lot of us here don’t care about the deductions they get when they use out-of-network ATMs. In fact, many people continue to pay ATM fees every time they withdraw. Although some charges are low, the money that was deducted can add up over time. And without realizing it, you are already spending your money for nothing.
To avoid such, if it is not your bank’s logo, then don’t use it. However, if you happen to live in a place where they don’t have convenient ATM options, then you might want to consider opening another account with more accessible.
2. Not tracking your spending
This is one of the common habits we usually do. There are just times that we are not aware of things that our money went. Sometimes, we buy unnecessary things, which are basically spending without thinking. If you are serious enough to break your bad habits in handling money, you have to keep track on the things you spend. And if you think that you are already spending too much, then you better stop right now.
3. Only paying the minimum on your credit card balance
Using of credit card can be an alluring prospect if you are on a tight budget. Yes, it says 1% to 3% interest rate. However, whether you admit it or not, we have these tendencies to be complacent about it without even realizing that that particular percentage adds up each time you use your credit card. Additionally, the more you tend to pay only the minimum on your credit card balance, the more interest you will get.
4. Not prioritizing high-interest debt
If you are not keen in prioritizing your debts, especially with the high-interest rates, this will go to put you in financial trouble one day. You might be paying your debts, but you did not take some to think which of your debts needs to pay first. The higher the interest rate, the more problem it’s going to be when paying it.
5. Making late payments
This is also one of the things we tend to do. Of course, there are just times that we don’t have the exact budget for paying the said bill. That is why we are late in paying our bills, which is definitely a bad practice. Remember, some banks will have a higher interest rate especially when you miss to pay on the given date.
6. Putting off insurance
If you think insurances are not that important, then you better think again. Having insurance is definitely important for you, especially when it times of emergency. If you have one, you will not worry about the money to pay emergency bills since it is carried on the insurance that you have. Moreover, insurances will save you when you in times when you are on a tight budget. As early as now, you have to start looking on which type of insurance you should buy to ensure your future.
There are actually a lot of bad habits we can think of. But these habits above are the most common things we tend to do, without realizing we are already not doing the right thing when it comes to saving money. Yes, we all do know that it is going to be a challenge for us and the struggle is real, especially for starters. However, if you just learn to break through these bad habits, you will eventually realize that it is not that bad and hard thing to do to achieve a desirable result.