Do you find yourself in a financial crisis too often? It might be time to look at the money habits keeping you poor.
You might think making money is impossible, but that’s not true.
Right now you might wonder where your money is slipping or you’re finding it extremely hard to pay your credits, your loans and your EMIs.
In this blog post, I want to share some common money habits that could be sabotaging your financial health and offer insights on how to break free from them. Let’s dive in.
Building good habits can change anything, whether relationship, health or wealth.
If you are tired of being broke all the time, then it’s time to check whether you are following these bad habits knowingly or unknowingly and get rid of them ASAP.
You are not meant to be poor
Money and wealth are abundantly available in the universe. Like there are plenty of plants, flowers, animals, insects, galaxies, and stars in the universe money too is in plenty.
It just hasn’t reached you YET.
And the reason is that you have been blocking the flow of money into your life because of your bad money habits.
I don’t mean to blame you, but you yourself are responsible for your financial crisis.
But you yourself can mend it too.
Until 5 years back my financial condition was very bad. I lived my life in scarcity but I changed it myself by avoiding bad money habits and creating good habits in my day-to-day life.
If you are determined to change your financial condition, you can.
What is a bad money habit?
Bad money habits are those behaviours or practices that hinder your financial stability, growth, and well-being.
Bad money habits lead to poor ways of managing money, overspending, accumulation of debt and being without any savings or investments.
Much of your financial stress might not be because of your low income, but because of your bad money habits.
I have seen many people who even though they may have a huge salary don’t have much savings and are always broke by the middle of the month.
Whereas those who have good money habits may earn less, but because they have good money habits, they are never broke and are always sufficient and abundant.
So it’s important to avoid bad money habits early on in your financial life so that you can enjoy a smoother stress-free life.
Bad Money habits keeping you poor
1. Spending more than your income
Spending more money than you earn can lead to debt and financial instability.
Be thoughtful while spending your hard-earned money. It must be used in the best possible way.
Learn to differentiate between your wants and needs. Give priority to your needs first and then wants.
Avoid using credit cards as much as possible. Instead, use your debit card or even use cash wherever possible.
2. Not focusing on the future
Not focusing on the future and spending money on unnecessary things can lead to a shortage of funds.
When spending your money keep your focus on the future. Even if you have a lot of money now, don’t spend it all in the present.
Keep savings for the future.
Keep a certain percentage of your income solely for savings and separately also for emergency funds.
You can automate your savings so that it gets deducted directly from your salary account.
The more you save the better
3. Obtaining loans after loans
Poor people have a very bad money habit of obtaining loan after loan.
In order to pay back a loan, they take another loan and this creates an even bigger burden because now you have to pay not one but two loans.
Then they might even end up taking another loan to pay off those loans and then it becomes a debt trap.
No matter how hard, you should never take another loan until the earlier one is cleared or unless you know you have an income from which you can repay it.
Save money from all sources instead and do things, learn things to pay off your loans, but don’t take another loan.
4. Not saving money
Saving money is accumulating your wealth. The more you save, the more secure your present and future.
Neglecting to save money for emergencies or investments for the future can lead to difficult situations.
You will lack building your wealth over time, which gradually puts you in a financial crisis.
No matter how little your salary, always keep a saving goal every month.
P.S How to save money with little income
5. Not Making Clear Financial Goals
To achieve anything in life you must have clear goals.
Without goals, you will be unfocused and eventually, you will remain clueless about your life.
Having a financial goal is important in human life, but most often we do not keep it and say that we are okay with how much ever our salary is.
Without clear goals, it’s challenging to know what you’re working toward and how to prioritize your spending and saving.
You must have certain income goals and always strive to be financially independent.
Don’t just try to be rich, work on being wealthy.
6. Ignoring debts
If you are ignoring debts, then this is one of the worst habits keeping you poor.
Many of us don’t even want to know how much debt we are in because it overwhelms us and makes us stressed.
I know it is hard, but the more you keep ignoring, the more you will always remain in such a situation.
Debt is a negative habit which will block your financial flow in your life.
Have a clear picture of how much debt you owe to someone or something.
Re-evaluate your financial situation.
Access your income and make a plan to clear debt in a certain amount of time.
Nothing is impossible. But you have to begin it.
As soon as you receive your salary, keep some amount for repaying your debt.
If you cannot return all of it, at least pay how little amount you can. Something is better than nothing.
This habit of paying back debt will help your financial condition to open up and new financial opportunities will come on the way.
It’s certainly not bad to borrow money, but it is bad to not return.
We all fall into crisis sometimes and we need help from our friends and family.
I sought help from my friends many times, but I used to return her money first thing after receiving my salary.
Now I don’t owe anybody any amount.
7. Comparing yourself to others
You are unique and there is no one like you in this entire world. Do not compare yourself with any other person.
If somebody is rich and financially well, then you don’t have to be like him/her.
Spend your money according to your own capacity and not by how others will see you.
Be wise and do not keep up with others.
Comparing with others and buying stuff might make you look rich, but inside you will still remain poor.
Don’t let how other people see you for a brief amount of time put you in a financial crisis and make you poor.
Instead, think to yourself, that this phase is only for a certain time, so you are going to make wise financial choices.
8. Not budgeting
If you do not budget your income it will result in overspending and difficulty saving money.
Budgeting your money will help you track your expenses.
I always keep my Bridget at the start of the month.
This practice helps me to keep track of my finances.
I always keep a certain percentage of the amount for charity, travelling, tax, for the marriage of my daughter, savings, and investment.
I do not feel bad spending money while travelling because I know that I am not overspending my money. That money is for travelling and so I spend it happily and without thinking much.
Budgeting gives me peace of mind.
P.S Here are some popular budgeting strategies you can adopt
9. Not having an additional income
It is difficult to sustain a good life with only one income.
Living only with one income can lead to a crisis, especially in times of emergency.
The cost of living is becoming expensive each passing day.
But there are also plenty of opportunities available around. Additional sources of income can significantly impact your financial situation.
Find ways to seek additional income. Upskill yourself. Learn new things and have. a side hustle for yourself.
10. Neglecting insurance
Always buy insurance to secure your health and future.
Not having appropriate insurance coverage can leave you vulnerable to financial disaster.
Neglecting health insurance is like neglecting your life.
Life is uncertain. Anything can happen at any moment.
It is difficult to find financial help in the time of crisis.
It’s always advisable to buy health insurance to be protected from all sorts of crises.
11. Talking negatively about money
Talking negatively about money is also one of the money habits that might be keeping you poor.
Stop talking about your financial crisis to everybody you meet.
If you only talk about bad things about money, then how can money stay with you?
Do you like to stay with the person who always complains about you? It’s the same with the money.
Stop negative talk about money like- money is bad, rich people are bad, money is the cause of every trouble, I can’t save money, money always slips away from me and so on.
Change your negative money mindset and cultivate a positive money mindset.
Read good financial books for this purpose.
Be educated about money and how to adopt a wealthier lifestyle.
Final thoughts on money habits keeping you poor
If you are in a financial crisis, check these habits if you have them. Try to get rid of these habits as soon as possible to enjoy financial abundance.
If you can eliminate these habits then only good habits will remain with you and that is enough to come back to your financial security.
Do not be disheartened about your situation.
Nothing is permanent in this world. If you only become a little aware of your habits, then not only financial, all the areas of your life will be blessed
I have gone through the crisis and now I know, that everything is in our hands to change any kind of situation in our favour.
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