Whether your current financial status is good or just about to get there, one of the first things you should keep a close look at if you want to be financially stable are your spending habits. Many of us have money habits that are ruining our finances. What may seem like a small spending routine, for example, could actually be hurting you financially.
When it comes to managing your money, it’s easy to fall for traps and practices that are less than healthy. Here are some expensive money habits we recommend you should kick immediately.
Charging Impulse Purchases to Credit Cards
There’s no denying that credit cards are a great convenience. However, using it for every purchase, especially for impulse buying, can be detrimental to your money management efforts. Paying off credit card debts at the end of every month is a good plan, but only in theory. Most of us get in trouble because we charge everything on our cards without tracking them properly. Before you know it, you are buried in debts and interest. Overspending is also a temptation that’ll constantly hound you.
Break this habit by being smart with your spending. Know that there are things you should never put on your plastic card, and that there are situations where taking out a loan is the better, more sensible option.
Paying Bills Late…or Never
Late payments or non-payments of bills can damage your credit rating and overall finances. Your payment history is an important factor in determining your credit score, and if it’s on the negative side, you may have a hard time applying for mortgage and other loans in the future.
Pay your bills on time. Doing so not only helps keep your credit score in check, you also get a better sense of your budget and spending. You will also be avoiding expensive interests and surcharges, which can do a lot to save you money.
Not Having an Emergency Fund
You’ve been told over and over that you need to have an emergency fund, but not everyone has enough funds to maintain one. Not having money for unplanned expenses could wreak havoc on your financial life.
The best way to break this is to start saving early. Putting away even just a small slice of your monthly paycheck is already a good start. If you’re really strapped for cash, an easy way to fund any emergency expense is through a loan – something we can help you with.
Anytime you’re short on cash, don’t hesitate to get in touch with us. We provide instant cash loans with the lowest rates in the state, guaranteed.