You can never go wrong with saving for the future, but most young people are so caught up with living large and impressing others, that they end up with empty wallets. There are various habits that you might be cultivating that could be draining your pockets. It is time to stop living hand to mouth and experience financial freedom.
Whether you would like to admit it or not, you should be saving more than you spend. There is no magic when it comes to money, your money situation will only improve when you keenly look at the money habits you have developed over the years. Ensure you are not destroying your future with these not-so-good money habits:
1. Not making a monthly budget
Budgeting can be boring, that is a fact. If you do not spend time budgeting, then be sure you are going to spend money on unplanned things. Budgeting helps track how you spent the money. Make a budget every start or end of the month and allocate money for your monthly expenses as well as savings. If implemented correctly, this will save you from a life of uncertainty spending.
2. Impulse buying
Impulse buying is common with young people. It may be difficult to resist buying various items but it is important to realise that we mostly buy things that we do not need. Impulse buying always prevents you from making good financial decisions as you only think about buying unnecessary stuff. There are various reasons why people indulge in impulse buying, however, none of them can be justified.
Procrastination is costly. It is a habit that is time consuming but also leads to high spending as well. Many defer making savings or give excuses for not saving. Why not take a leap of faith and start today? You stands to benefit from the habit of saving.
4. Increasing the standards of living
Whenever one gets a pay raise or a well-paying job, we are usually quick to upgrade their lifestyle. It is often said that the more the money one has, the more their expenses. In this kind of situation, prepare a proper budget and plan your spending 6 months into your new promotion. Take time to plan, and take time to save.
Ignorance will cost you in your later years. There is nothing as bad as being ignorant with your money. Since you work hard for your money, it’s also good to have basic knowledge of how to use it. It is essential to develop an interest in where you invest your money. Take time to gain knowledge on short and long-term investment plans, insurance options and more. Google is your friend Invest in finance books or even take a course for that, just to better yourself with this kind of information.