5 Bad Financial Habits That Will Send You To The Poor House

Letting go of these 5 bad financial habits will get you on the path to financial freedom, less stress, and more peace of mind.

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Are you in debt, struggling from paycheck to paycheck, and in the back seat of your own financial car?

The bad news is that you might inadvertently be keeping yourself poor with bad financial habits.  Perhaps you don’t realize that your bad financial management habits may be  contributing to your continuing financial stress.

It’s time to examine and drop the habits that are keeping you poor.  This is the first step toward getting on the path to financial freedom. 

Make the decision to drop these 5 bad financial habits from your life:

  1. Failure to create an adequate emergency fund.  The best way to prevent financial ruin is to have an emergency fund.  Your emergency fund should covers at least 3 months of living expenses. A short period of unemployment or a single, unexpected, major bill can be financially devastating. Start by setting aside whatever small amount you can afford each month and begin creating your emergency fund today!  You can start with as little as a few dollars each week.
  1.  Stop paying bills late.  Until recently, I thought that credit card companies make most of their money from the high interest rates they charge.  I was surprised to learn that this isn’t true at all. I recently learned that it’s actually the late fees they collect that makes up their biggest source of income. Nearly every bill you pay each month becomes more expensive if you’re late, even by a single day.  So its essential that you get into the habit of sitting down once a week and paying the bills that are coming due. Don’t wait until the last minute. Pay them at least 7 days in advance and avoid late fees.
  1. Inappropriate use of credit cards.  Whenever you use a credit card to make unnecessary purchases that you really cannot afford, you are sending yourself to the poor house and exacerbating your financial stress.  The quickest way to financial disaster is to consistently make charges on your cards, often up to their limits, and then only pay the minimum due will each month.  That is a bad financial habit that puts you in a precarious financial position, lowers your credit score, and keeps you in debt for a long, long time.  If you are doing this, you are keeping yourself poor!  
  1. Making impulse purchases. How many times have you made a big unplanned purchase and then run out of money at the end of the month? Impulse purchases are rarely satisfying after the initial glow has worn off. On the contrary, you probably end up feeling frustrated and resentful of the purchase when you realize that you’ve dug yourself in a deeper financial hole. Instead, before making impulse purchases, always take a few days to think about the purchase before making a final decision. The urge to buy on impulse often subsides within 48-72 hours.

  2. Buying items you don’t need. After shelter, clothing, food, and medical care, most spending is optional to varying degrees. You probably don’t want to feel like you’re living in a cave and eating sticks, but you certainly spend money each month that could either be saved or spent more wisely.
     

Please Share Your Thoughts 

In the comments below, share with us:

1. Which habit do you think will be the easiest to eliminate?
2. Do you have any financial habits that work well for you?

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