Wednesday, December 13, 2017
12 Money Habits That Kill Your Freedom
We all have things about ourselves that we don’t like. Maybe it’s our nose or maybe it’s that freckle on your shoulder. What we really should focus on is things that we do, that we don’t like. Our habits are what defines us. Our habits are what shapes the way the world sees us and the way we see ourselves. Our money habits are what may hold us back from doing the things we want to do in life. Many of us don’t even know what we are doing may be hurting us financially. Today, I will discuss 12 money habits that will kill your chance at financial freedom. We must remember that all money does is buy choices. The less money you have, the worse choices you have.
1) Denial
Denial is more than just a river in Egypt. Denial will crush you in ways you won’t believe. A prime example of that is me, back in the day. I used to not open bills and throw them in a pile, knowing I didn’t have the money to pay them. It was almost as if I thought if I didn’t see the number, it would go away. Wrong! It just got bigger and worse. Always address money problems. Not budgeting is a problem. Not saving is a problem. Not having insurance is a problem. Accept that you aren’t fully where you need to be and work towards getting there. I personally love saying “I told you so,” but not when it comes to serious money matters. I’d rather get a hug for helping someone protect and provide for themselves than give a hug to a friend or client for whom it is too late.
2) Procrastination
This ties into the denial part of the post. Putting stuff off is the worst thing you can do. Listen, we are all busy. We all have hectic lives and we all have very little free time. If you cannot dedicate a few hours a month to your finances than you don’t deserve to be wealthy. Sounds a little harsh right? Well, we all want to be rich, but do we know how much time the wealthy spend trying to obtain and build wealth? It is their daily focus! Now I am not saying that is the way, all I am saying is you need to not put things off and work on your finances regularly.
3) Being Ignorant
Let’s change that to being uneducated. Ignorant is a strong word but let’s get back to its real definition: Not knowing. Being an expert on money is impossible, but knowing the basics is very possible. Everyone should strive to have a basic understanding of investments, mortgages, insurance, and simple everyday finances. It is okay to not know, but it is not okay to not care. This goes back to the first two points. Take some time to educate yourself on the things that affect you most, like banking, interest rates, investments, and insurance. They are not that complicated and there are many people like me willing to help you out.
4) Not standing up for yourself
I absolutely hate settling. I hate when my worth is questioned. I hate when I am undervalued. Now, this might sound preachy, but it is vitally important. You must know that you are more than a number in a bank account. You are more than a drone at work. You are more than just a name to an insurance company. You must act like what is important to you, should be most important to everyone. If you do not you will be taken advantage of. That doesn’t mean be self-centered; it just means to be assertive in what you want and feel you deserve. This becomes especially important when dealing with the bank. People always forget that the bank needs you more than you need them. Don’t be fooled by that marble floors and smiling faces.
Bad money habits to break to build more wealth – CNBC
5) Carrying balances
Excuse my language, but fuck VISA! Carrying a balance at the end of the month is brutal. If you have a large credit card or line of credit balance you must get rid of it. Once you accomplish that, make it a goal to not carry a balance again ever. With interest rates as high as 23%, they are making a killing off you. It truly is one of the best rackets there is out there. We have essentially legalized loan sharking and the sad thing is, we all fell for it. Points, cash back, Aeromiles, and gifts don’t matter if you are in debt. Make it your goal to use your credit for it’s intended purpose, convenience.
6) Living for today
I going to let everyone out there know something that may shock you. You can live for today while also preparing for the future. Shocking right? Yes, I believe we all should cherish our time in the present. But I also believe tomorrow is going to be the present one day. Makes sense, right? If you don’t take the steps to make tomorrow better, your future self will be living in that present time and will be miserable. We all could die today, yes, it’s true. What if we don’t though? Simple probability states that most of us will be here tomorrow, next week, next year. Your YOLO attitude might make tomorrow a crappy place.
7) Not prioritizing
We are constantly being pulled from every direction. One problem that many of us seem to have is prioritizing what’s important. Addressing your finances should be at the top of that list. Doing so will allow you to take care what is most important, your family, friends and personal well-being. Within your finances, there are more pressing issues than others. For instance, debt is huge. If you have debt, you shouldn’t go on a vacation. Sounds harsh but it is true. You prioritized your enjoyment over your money, which will cost you more money in the end. Understand what should be important to you, and it might not be what you enjoy most. Think big friends.
The Importance Of Prioritizing – The Odyssey Online
8) Dining out or ordering in
It is unbelievable how much money most of us waste on takeout food or dining at restaurants. The mark up on food is insanely huge. I know first hand, I’ve worked at restaurants for years. Why on earth would you regularly pay $15 bucks for a burger you can make for $2. Now I’m not saying don’t ever go out, but like the vacations comment, if you are in debt you should not go out on the regular. Are we trying to make VISA rich so we don’t have to cook a meal? Let’s get real here.
You Want to Take Away my Coffee? – The Latte Factor and Cashflow – Budget Boss
9) Not working as much as you can
I know some superhuman people, mostly mom’s, who work like a dog, raise a family and put in overtime to boot. One huge problem for many people is that they think they can get anywhere in life working as little as possible. Whoever said, “Work smart, not hard,” is a moron. Why not do both? Does there have to be a choice between one and the other? Are they mutually exclusive? Let’s be honest, in your younger years do you really deserve to not be working as much as possible? What have you accomplished to say, “Well I need a break, I’m taking a year off?” No one ever became wealthy being lazy, unless they got lucky.
10) Not saving for retirement
Everyone should be saving for retirement. Even those with pensions should save for retirement. Why might you ask? Is it your goal to wait till you get that pension deposit every month and then spend until the next one comes in? Or is it your goal to do what you like in retirement, when you like. Only savings provides that. If you don’t have a pension, which most of us don’t, you absolutely need to save for retirement. I hope you started yesterday, if not, start now.
11) Using savings for everyday stuff
Savings are saved for a reason. Maybe it is a large purchase. Maybe it is a vacation. Maybe it’s for retirement, your children or even just to feel more secure. Your savings cease to be savings once you use them for crap. Emergency funds should be used for, well, emergencies. This means that you should not touch them unless you have no other options. Show a little discipline and keep your money for its intended purpose.
Starting an Emergency Fund – My 5 Step Process – Budget Boss
12) Ignoring Insurance
I know insurance seems terrible. I pay money and get this piece of paper??? Insurance is vitally important to any financial plan. Life insurance if you die prematurely. Health insurance to pay for out of pocket expenses. Disability insurance in case you get hurt and can’t work. Homeowners and renter’s insurance to protect your valuable stuff. Having $200 a month coming out of your account every month to the insurance company may suck, but living on the streets is far worse. Yes, if you are not properly insured you may lose everything, so don’t ignore it.
Money habits are often tough to break, but if history has taught us, anything is possible. You have the power to break these nasty habits and focus on what is important, wealth and abundance. Ignoring your bad money habits may leave you with very little options in the future. Start the change today!
Thanks for tuning in today as Habits Week continues at Budget Boss. Don’t forget to tune in tomorrow as I discuss the best money habits you can have. If you would like to start some new, exciting money habits, let me know at joe@budgetboss.ca. Have a great day Bosses!
“Most people don’t have that willingness to break bad habits. They have a lot of excuses and they talk like victims.” – Carlos Santana
Email – joe@budgetboss.ca
Follow Budget Boss on – Facebook LinkedIn Twitter Instagram Pinterest Quora