There is no denying that people need money in this crazy life-long journey. Who doesn’t need cash anyway? Ladies, gents and all the lovely people in between, stop the stigma that wanting more money is a bad thing. It is not — as long as you work hard for it without fooling anyone.
In this article, I am going to reveal the bad money habits that keep you from earning some more.
“I do have a full-time job, but why am I still poor?” If this sounds too familiar to you, then you are on the right page. Flashback to when we were younger, we aggressively wanted to finish school because we believed getting a decent job would make us rich in some way. Why does it feel like suddenly something is putting a stubborn limit on the money we make from this white-collar job? We’ve been working for years yet our savings rate remains unmoving or worse decreasing.
The thing is that we practise bad money habits without recognising the ripple effects they have on our finances and social status.
Cue the habits that keep you broke.
Rejecting Other Income Potential
The reason why some brilliant workers are stuck in a paycheck-to-paycheck cycle is that they do not welcome other opportunities out there. Just because you are accomplished at work or in your business does not mean you can stop chasing some more.
A lot of people may justify that they don’t want to be rich and that they’re okay with covering their basic needs and that’s it. But, what happens when you lose your day job? In life, you should always have a Plan B, C, D and so on. Do not ever say you don’t have the time for a side job or a business. You can always put business loans to use. Why not explore your talent and learn something new so that you can foster your source of income? After all, it takes money to make money.
Not Investing in Yourself
Before you even invest in stocks or real estate, make sure you invest in yourself first. Trust us, you are the most valuable investment that you can make because you have the force to get the job done and make money out of the job you did. How to invest in yourself? Grow your knowledge, learn new skills and improve your health.
Sticking to a Lottery-Ticket Thinking
Who else fantasises winning the lottery or marrying a rich man one day? Sure, receiving a lump sum cash in an instant is so much better than earning an annuity of $85,000. However, you cannot always expect some stroke of luck to transform your life. If you are not willing to make a move and control your finances on your own, you are going to reap not a single fruit from your labour.
Having Disorganised Finances
Another bad habit is keeping your money matters jumbled. You have tons of credit cards to which you don’t even know how much you owe. You have no idea where your money went or how much is left in the bank.
Remember, tracking your financial stuff can give you a better vision of your own cash flow including your budget, earnings and balances. You can layout your finances on a spreadsheet or use apps to help you connect with your credit card and savings account.
Taking Advantage of Salary Increases
As the salary raises, so does our spending. Correct? What used to be considered luxury becomes a necessity mainly because we are confident that we have the means to buy something expensive. And so, we tend to live beyond the standard way of living.
Did you know that lifestyle creep can sabotage your financial success? Do not take salary appraisals as an opportunity to spend more. Instead of splurging on certain things, let your savings be the first to grow when extra income arrives.
AUTHOR BIO: Sarah Contreras is a full-time writer whose main enthusiasm switches between interesting blogs and underrated films. Aside from writing sonnets at 6 am, she also blogs general issues and smart financing tips for Lending Connect, the most trusted business lending provider in Australia.