Some people are in complete control of their finances and find managing them a breeze. They live debt free, stick to their budget every month and can plan their finances ahead of time. But not all of us are good at managing money, which can lead to stressful situations, sleepless nights and mounting debts.
Whether you’re looking for new vehicles or want to have a deposit for a house, making a few changes to your spending habits could see you saving for the future. So, here are some of the bad habits that you need to change so you can make savvy financial decisions in the future:
You Rely on Credit Cards
When an emergency arises, you may need to run yourself into the red to get over it. But if you’re constantly living with credit card debts, it’s time to change how you’re handling your money. First, you need to put together a solid budget plan, which will help you to identify what you’re spending too much on. Having this budget in place will allow you to cut your spending and pay off your credit card bills.
You’re Always Late with Your Payments
Everyone forgets to pay a bill at some point in their lives, but if you’re constantly behind with your payments this could be a real issue. In most cases, there are two reasons why you might miss payments – firstly, it’s because you always forget, or secondly, it’s because you don’t have enough money to pay them.
If it’s the first, try scheduling your payments to come out of your account automatically, so you don’t have to manually process them when the payment deadline crops up. Or, if it’s the latter, refer to your budget so you can plan your payments in advance, potentially moving some of them around so you have the right finances available to you.
You Don’t Talk to Your Partner About Finances
When you’re in a relationship, it can become even more difficult to budget. Because you’re both spending money at the same time, it can be harder to track where your money is going. If you’ve merged your two bank accounts, this can be a frustrating time for both of you and can take some getting used to. However, if you put a budget together with your partner, you can both work towards your financial goals by being aware of what each other is spending.
You Don’t Have a Budget in Place
Now’s the time to establish a budget if you don’t already have one. Even if you’re not in the red each month and you’re paying all your bills on time, you still need a budget. That’s because it helps you to create goals and focus your spending, and it also provides you with that much-needed control over your finances. Without a budget, it’s easy to lie to yourself about your spending, so make sure a budget plan is one of your priorities.
You’ve Got a Mounting Pile of Debt
It’s important that you’re making changes straight away if you’ve got an overwhelming debt problem. By making some changes you’ll be able to take control of the situation and can quickly turn your financial circumstances around. With sheer determination and hard work you can start paying your debts off, which will help to get rid of those sleepless nights you’ve been having.
You Feel Like You’re Stuck in a Rut
When you feel like you’ve got yourself in a rut with your finances, it’s time to break free of this. For example, you might not be using your credit cards and you may be paying all your bills on time, but you feel like you’re never getting ahead. However, with a good budget and a financial plan in place, it’s easy to motivate yourself because you can see where you’re heading.
You Spend All Your Money at the Beginning of the Month
If you can’t pay your bills at the end of the month or you struggle to put food on the table, it’s clear you’ve got a cash flow problem. However, this can be easily overcome by allocating money for the month so you don’t spend it all at the start. It could even be as easy as putting certain amounts in envelopes for bills that come at the end of the month, because, once taken out of your bank account, you’ll be less likely to spend it. By making a few simple adjustments like this, you should find that you relax a lot more as the end of the month approaches.
Callum McKenzie is on a mission to get his family out of debt by 2020. He writes about a range of personal finance matters in his articles, sharing tips for better finances.
