Top 6 Bad Money Habits You Should Break This Year

 

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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.

Pros and Cons of Online Banking (Focus on the PROs!)

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If I want to learn something, I ask the person the closest to me. If that person doesn’t know the answer himself or herself, I ask Google. I expect convenience when I need it that’s why I refer to Google as my go-to place. Everything seems to be possible with the Internet including banking. Yes, I said banking. We can even do mobile banking.

I know for sure that Google has limitations, and so is online banking. Nonetheless, the advantages surely outweigh the disadvantages.

Pros

1) Convenience

I like the fact that online banks are open 24/7/365. There are maintenance downtimes which I experienced at least twice since doing online banking in 2011. These are very minimal and implemented for the safety of the customers.

2) Ubiquity

Money problem arises anytime, anywhere. If you are out-of-town and someone in the family had an emergency, you may simply log-in to your online bank’s website and transfer the needed money. In case you forget to pay your bills, you can also pay through your online bank.

3) Transaction speed

An ATM transaction takes about 1 to 5 minutes. An online banking transaction is executed even faster than this; perhaps, 1 to 2 minutes. No need for long queues at the ATM area of the bank or mall.

4) Efficiency

If you think an online banking platform only provides an account details and account summary, think again. Chinabank, for instance, also provides mini statement and transaction history including the payments and transfers made.

5) Effectiveness

Majority of the online banks also offer sophisticated tools and features for more convenient usage of the site. For instance, there are investment accounts tab as well as loans and trade accounts.

Cons

1) Takes a while

Registering your own account in online banking takes time, about 5 to 7 business days without delays. Online banking enrollment is easy. However, you need to fill out online forms first prior to enrolling your account. Next, you have to go to the nearest ATM of your bank to link your account to online banking. Activation is between 24 to 72 hours. After that though, you can perform transactions through online.

2) Steep learning curve

If you are new to e-banking, learning the entire process can be a hassle. There are online banking sites that are not really user-friendly. With this, you need to invest an ample time reading tutorials. Anyway, you can learn on the FAQs page of your bank.

3) Bank website changes

Immediately after learning the basic features of your online bank, the bank went down for at least 12 hours to update and introduce some changes. Websites do this periodically. You have to unlearn and learn the new features in the process, which may include another round of tutorial.

4) Trust and security

Security is always an issue, affecting the users’ confidence in the process. Essentially, the banks themselves are fully aware of the perceptions of the people that’s why they invest heavily in advanced technology. Today, there are basic security measures such as invalid login attempts and transaction password requirements.

Evidently, online banking is specifically designed to be convenient for us users. While there may be downtimes and errors at times, these shouldn’t hinder you in maximizing the convenience that these banks offer you. My life would have been a great financial disaster without online banking. It literally made my life easier!

Try it now, and it will be definitely a financially rewarding experience.

Image credit: NewEraBank.com