August 9, 2021
13 Bad Habits Preventing You From Saving
The habits you subconsciously do on a daily basis can help give you structure, but it might also be preventing you from achieving financial security. Here are 13 bad habits that you might be guilty of and should probably work on.
1. Paying for Monthly Subscriptions
Whether it’s an on-demand content service or a box of goodies for your dog every month, these subscription-based plans can add up in a year. In addition, most of these entertainment purchases are a huge productivity zapper.
2. Buying Name-Brand Groceries
If you’re choosing groceries based solely on the brand name and nothing else, you’re losing money. Choose generic brands instead, which are cheaper but offer the same nutritional value and utility.
3. Not Negotiating Your Insurance Premiums
Car insurance rates are typically higher for first-time drivers and new cars. But over time, as you get more behind-the-wheel experience and your car continues to depreciate, you can actually request for a lower monthly quote for your car insurance.
4. Having FOMO
Fear of missing out can push you into attending gatherings that have no returns on either your time or finances. It can also lead to bad investment decisions as you simply take on investment positions because everyone else is doing so. Think for yourself, and don’t be afraid to challenge the status quo.
5. Replacing Your Perfectly Good Phone
Nowadays, smartphone companies are launching new models almost every year. And people are suckered into trading in their perfectly good phone just to get the newer model.
6. Watching Television
It’s arguably America’s favorite pastime. Sure, the work day has ended, and you definitely deserve some rest. But post work hours are valuable time that you can use to take specialization courses or build your own business.
7. Being Content With a Job
A full-time job is definitely an asset, but you should also look into building your own firm or at least a side hustle. This yields more savings and more flexibility on your work hours.
8. Withdrawing Beyond Your Bank Balance
Overdraft fees and return item fees are expensive charges that you should avoid. It’s as easy as not buying on impulse, especially big-ticket items.
9. Hesitating to Ask for More Money
People tend to undersell themselves to their employers or customers. If you have a decent amount of work experience and a highly valuable skill set, don’t be afraid to ask for a raise.
10. Financing Without a Plan
It’s completely fine to finance a house, business, or vehicle, but not having any long-term plans on how to repay it is financially detrimental. Always know your repayment options, ideal interest rates, etcetera.
11. Driving Too Much
If you drive too much, you pay more on insurance, gas, and maintenance over time. Avoid places that are too far for you to walk or bike.
12. Not Having a Budget
This actually should be on the top of the list because of its relevance. To be able to fix your personal finances, you’ll need to first have a clear picture of the money coming in and going out every month.
13. Not Accounting for Sales Taxes
The more expensive the item is, the higher you pay in sales tax. Always account for sales taxes when you purchase big-ticket items, like a musical instrument or a home appliance.