Most of us are so accustomed with poor money habits that we don’t even pause for a while to review if we can make a substantial change. And let’s face it – old habits tend to live on, they become hard to break.
Let us explore some of these unwise money habits and how we can shun them to get on a good financial path.
- One of the most common ways we waste our hard earned money is by paying interest. The best advice – be aware of your interest payments versus capital payments, the first step to being financially savvy is knowing what your money is going toward. Some loans are unavoidable. A home loan is quintessential, so are a student loan at times and a business loan for those eligible. Also by avoiding loans unless absolutely necessary, an average person can easily save hundreds in a year. Imagine the savings over twenty or thirty years.
- Most people focus on the larger expenses every month and wonder if they can be reduced in any way. Often, it is found that the larger expenses cannot be affected much, from home loans to health insurance. But there are numerous expenses that most people indulge in that can be cut away with. Bottled water, the expensive coffees every day, the cigarettes and drinks at bars or lounges, dining at fancy restaurants more often than frequent, spending on gadgets that you wouldn’t use for long, impulsive buying at malls and stocking up on food or any stuff that will not be used. These are very normal actions that can be checked and one can save several hundred, if not thousands, in a year.
- It is necessary to review every financial liability from time to time to check if there is a way to save some money. Whether it is your contract phone or satellite television subscription, the utility provider or your landline, internet plan or car insurance, you must explore your options every few months and check for better deals without compromising on the quality or the services you get.
These simple changes to your money habits will not just help your immediate financial health but also pave the way for a handsome saving in a few years.
