Money habits determine how successful you can become
There a lot of harmful habits that if you are not careful can ruin your finances. If you must gain financial freedom, you have to take note of these habits and guard against them.
Below are 9 money habits that can lead you into poverty if care is not taken. Each of the 9 money habits highlighted may appear harmless and insignificant, until they are too strong to be broken and then, of course, the damage is already done.
1. POSTPONING SAVINGS
Most people who fall under the category of “low-income” earners are guilty of this habit. Most people who consider themselves low-income earners will have one excuse or the other for not saving or for postponing savings. But as the saying goes, if a man does not save when he earns N10,000, he is not likely to save when he starts earning N100,000.
This is simply because the saving money is a habit, and a habit of saving is much more important than the amount saved. There is no one that has had sustainable wealth without the habit of saving, thus postponing saving is just like postponing the day of wealth, the day of prosperity. Why not just take out something today and consistently put it into a savings account and you will be surprised that you will get used to living without the saved portion of your income.
2. IMPULSIVE BUYING
Buying on impulse simply means buying things without having planned for them. Buying on impulse is not always bad, as one may come across some irresistible bargains which one may not have necessarily planned for?
The issue here is that it should not become a habit. You go out with a pocketful of cash and return with an empty pocket. This is one of the surest ways to call on financial fuss.
Always have a budget to what you want to purchase and if you must buy on impulse, then have a limited float for such purchases not more than a small portion of your income.
3. SPENDING TO IMPRESS
If you frequently buy things because you want to belong with the Joneses, then you are already on a dangerous path to a financial ruin. Many young people are guilty of this. They buy a lot of things to impress.
This is why you would see people wear expensive clothes, jewellery, shoes and even drive luxury cars, not because they could afford them but simply because they want to impress others. This is a dangerous habit as it is unsustainable and makes it difficult for one to achieve financial freedom.
What such people do not consider is that in the final analysis when the chips are down, those they have impressed with such an extravagant lifestyle will not be there to bear their financial burden with them. If anything, such lifestyle attracts turns friends into enemies.
4. MAKING FRIVOLOUS CALLS
Have you ever considered how much your phone calls cost you per month? Those frivolous calls may be bleeding you dry and keeping you from financial freedom.
Some people will clearly state that they do not have money. However, if they calculate how much they spend on calls and data each week or month, and then calculate further what that would amount to if saved on a monthly basis in a compound interest vehicle, they would be shocked at how much they have to let go in say just five years on phone calls and internet subscription alone.
To avoid financial troubles, put a cap on phone spending per month. That way, the urge to remain in touch with loved ones doesn’t keep you in poverty.
5. EXPENSIVE FASHION
Looking good is a good business, they say. This is true as long as it is within sensible limits.
Some people would boast at just how many clothes they have in their wardrobes and at how many clothes they have unsown in their kitty. These are worthy fashion achievements but how do you do it without setting yourselves back financially?
It is important to strike a balance between your fashion needs and financial goals. You must not always wear designers’. Or be the first to sow that latest design from that popular fashion house. Some people, it is Aso Ebi that has kept them in poverty. The keyword is balance.
While it is true that to be truly wealthy, one should be prepared to use other people’s money, the proviso here is that such funds should be used for productive means capable of repaying their way.
Monies should not be borrowed for uses that are in the main recurrent, i.e for spending that will not produce other funds, or else this would be the beginning of unproductive and prolonged debts.
In other word, unless you have a productive use for money, do not be a frequent caller at the creditor’s doorstep.
7. OVER-INDULGING RELATIVES
In this part of the world, it is not uncommon for people to rely on an extended family member for financial aid. It has come to be known as the black tax. But spending so much on your relatives at the expense of your family is not actually a show of generosity but financial folly. This is not to say you should not care for your extended family, but it should be done wisely.
If you are always willing to go to great lengths to meet your family members’ needs, don’t be surprised when they begin to take advantage of it. And if you do not watch it, you might be digging a ditch for your finances.
8. EXCESSIVE PARTYING
Some people are the life of the party. And there is nothing wrong with that unless it is also bleeding their finances.
It is quite surprising how some people thrive on parties and Aso-Ebi that goes along with such parties. Life is definitely much more than merriment and one should not hope to drive continuous kicks from frivolities only.
This is not to say parting is outright bad itself but there is a time for everything, and moderation is the key.
9. MULTIPLE AFFAIRS
Indulging in multiple affairs or keeping many girlfriends, concubines or wives is a sure way to financial ruin, especially if you are not a man of considerable means. Remember that when the chips are down; the sing-song becomes “no romance without finance”.
When a man who has just one apartment has two or three wives and several children, then he has permitted his lack of self-control to get in the way of his personal finance common sense. This is a veritable pit that each and every smart person should be wary of.
These suggested 9 money habits are not in any way exhaustive, but the idea is to remind us there are indeed habits that you can form that are highly detrimental to your financial life and to be wary of such habits and others like them if you must be financially secure.