If you’re bleeding money, you won’t get any wealthier. So to get in better financial shape, give up your destructive money habits first. That alone will help you to stop your money bucket from leaking. Here are 5 of those bad habits that you need to quit:
Mindless shopping
- If you’re getting bored, you probably have a consumer mentality – spending money on things that make you happy isn’t always good for you
- Instead of relying on consumerism for our happiness, we need to rely on inner joy and practice more mindfulness
Spending time to save pennies
- Everyone needs to put a dollar value on their time and use that to make decisions
- For example, if you value your time at $300 an hour, do you really want to spend an hour searching for the best deal on a shirt you want to buy?
Having one income stream
- When you have options, you feel more at ease
- Having multiple income streams is the most important money habit because it’s a different perspective
- You can build a side business, invest your money in real estate or dividend stocks, or work in a field with job prospects
Using a credit card as a loan
Here are several ways to get out of debt:
- Assess your financial health; see where your money is coming from and where it’s going;
- Negotiate lower interest rates with your bank/credit card provider;
- Make extra payments to your loans when more money is coming in. Don’t just spend it all!
- Live on a temporary budget when your debts are overwhelming.
Borrowing money for liabilities
- If we need to borrow money to buy a car or other consumer goods, you are making a financial mistake
- Try to live below your means
