We all want to be financially healthy, but without realizing it, we may just be guilty of certain financial behaviors that are holding us back from becoming wealthy in the future. .
Avoiding these behaviors may not get you on the cover of Forbes, but it will prevent you from becoming poorer over time and reduce your chances of acquiring wealth.
advertisement
Continue reading below
Think of them as “bad habits” that you need to break as soon as possible.
not making a budget
There's a reason everyone says creating a budget is the first step to financial security. Without a clearly documented budget (and no, there's no point in having a budget in your head!), it's easy to end up spending more than you earn. The secret to financial health is living within your means, and working within a budget creates discipline.
Almost everything we see online is designed to get you to spend money. From the cute dress ads that follow you on social media, to retailer newsletters full of “special” products, to influencers promoting miracle skin creams, we find ourselves inadvertently becoming targets at every turn. They don't even realize that they are being treated. we go online. While it's unrealistic to avoid the internet forever, it's important to be conscious of the time you spend online, especially on social media, and that advertisers are always looking for ways to monetize our browsing habits and promote their products. You can notice it.”
Please take 24 hours to think carefully before purchasing anything. This will reduce the immediate dopamine rush you get when you buy something you don't need, and you'll be in a much better mental state to make rational decisions.
I'm too used to credit.
Too many of us think of credit as a means to life. We eat up money by shopping on credit, using overdrafts, and using credit cards unnecessarily, exposing ourselves to high interest rates and debt service fees. Bad debts should be avoided at all costs. It is not a way of life, but rather a last resort. Also, if you use a credit card, be sure to settle any outstanding balances as soon as possible to avoid these fees.
Thinking that you can get rich just by saving money
As I mentioned earlier, saving money is important, but ultimately there is a limit to how much you can save. Saving alone is unlikely to make you wealthy. Another piece of the puzzle is making more money. Easier said than done, right?
advertisement
Continue reading below
But if you look carefully, there may be plenty of opportunities in front of you. A side hustle that monetizes your skill set or hobby or provides a service is one way to increase your income. Investment is different. Or maybe you're due for a raise and are trying to work up the courage to ask your boss for a raise.To achieve true financial freedom, you need to save more, but at the same time make more. Saving alone is unlikely to make you wealthy.
Talking about money is taboo
We have been taught by previous generations that talking about money is forbidden. We don't talk about how much we earn, what we spend, and what we owe. But you should. There's still a lot of stigma attached to talking about money, but by continuing to hide our finances from those who need to know, such as loved ones, we're setting ourselves up for failure. It will be.
For example, it's important to have honest conversations with your partner about debt and financial goals, and it's also important to educate your children about reckless spending. Another way to break this habit is to consult a financial advisor. You need to tell them the whole picture of your financial situation, problems, etc., but once they understand clearly, they will be able to advise you on what you can do to get a better financial situation. .
Nydia Lawrence is a senior actuary at Metropolitan.
