Many people have a lot of bad money habits. Sometimes people don't realize what they're doing is considered poor money choices. To get to a better place with your money, you need to be able to identify the bad money habits that you have. Here's a list of 9 bad money habits.
1. NOT TRACKING EXPENSES
Not tracking the expenses you're incurring on a weekly or monthly basis results to poor money management. This could potentially be one of the many causes as to why you have little to no funds in the bank. Solution: Look at your weekly and monthly expenses and look at what your income is. Cut out anything that isn't necessary and budget the rest until you start seeing decent amount of funds in your wallet.
2. NOT INVESTING
When you don't invest, you're leaving money on the table. Investments are great but they are long term gain. Solution: Start saving a bit of money, even if you have $100 it's still something that you can invest.
3. THROWING MONEY AT PROBLEMS
This is a really bad money habit. Throwing money at problems doesn't solve anything. Those same problems can come back and you just losing money unnecessarily. Solution: Deal with the problem at hand. Sit down, strategize, and come up with a plan that you can follow through.
4. NOT NEGOTIATING
Just accepting whatever offer a company gives you and not negotiating what you want- doesn't help you out. Chances are, you can get a cheaper deal- you would need to negotiate. Solution: Practice negotiating if it's something you're not strong at it.
5. SHOPPING TOO MUCH
This is one of the biggest culprits of having bad money habits. Not spending money on clothes, shoes, bags, etc. will help. Put the money you would spend on shopping towards investments or starting a business. Solution: Give yourself a small shopping budget if you're a shopping fanatic.
6. GENERIC GOALS
Just setting generic goals will only get you so far towards your financial freedom. You have to think short and long term solid goals that you want to achieve. Solution: Take the time and plan out your goals. Use SMART (specific, measurable, attainable, realistic and timely) to come up with great goals to get you where you want to be.
7. IMPULSIVE BUYING
Definitely something you want to stop doing. It's just another really bad money habit to have. Chances are you're most likely buying something that you don't need or you won't use. Solution: Before buying or purchasing the item, think about it. Is something that you're going to want 7 days from now? If the answer is no, then put the item back!
8. EXPENSIVE VACATIONS
Constantly going on expensive vacations or even going on a vacation that you'll take a financial hit, then you shouldn't go. That money can be spent wisely paying off debt, starting an investment, or starting a business. Solution: Go on inexpensive vacations or save up for the vacation you want. Transition your mindset to invest the money towards something that can give you the financial freedom and the perks that come with it.
Bad money habits can be easily avoided. It just takes a shift on your mindset, dedication and focus. Strategize, plan and be realistic. Budget and save until you're standing on your feet. With that, invest into a business, investments, or day trading. Bad money habits CAN turn into good money habits.