Kick Financial Bad Habits
“Getting into financial bad habits is not at all a big deal; it is one of the easiest to get to.” (“Financial Bad Habits – How They Keep Your Wallet Empty”) Some people are so full of money that they can buy anything without any sort of apprehension. But it is always suggested that people stay vigilant and keep the expenses down.
Credit cards encourage bad financial habits. Some people have the bad habit of buying too many things with their cards. It is extremely easy to get a credit card. There are so many companies offering credit cards, which do not ask you to hold much money in your bank account, which only adds fuel to fire.
These credit card companies do not seem to understand that their clients will have to pay other companies if they hold too many credit cards. Some of us get the cards keeping in mind the emergencies. But we end up spending a lot more than we know, using these credit cards. This leads to a situation where it will be hard for a person to pay even the minimal monthly payment.
This would lead to the next link in the chain, borrowing money from known people, especially acquaintances. That is just another bad habit. The relatives might want to help you, but not all the time. You cannot afford to look up to your relative to save your skin every time. This will again make you get back to square one.
The same thing applies even for friends. It is bad to lend or borrow money from them. This will only put a strain on the friendly relationship. One might even forget how much he borrowed. Borrowing money from friends is a bad habit that you can hardly quit.
Spending as per an economical budget is another thing that needs to be followed by everyone to keep away from being a spendthrift. This will give a basic idea as to where most of the money has been spent. It is always better to maintain the accounts on paper rather than trusting your brains with this. This will give precise information on the money being spent.
It is actually bad to be looking for the grace period, instead of paying up before the due date. Many people wait till grace time turns up. Most of the utility companies give a grace period before they cut the service. Not paying up regularly might lead to a situation where the service might be cut off. This will also curb your credit rating.
Another bad habit is destroying the soft copy of the accounts before it can be copied into the system. This can be disastrous in the long run. It can be thrown away once you are sure that it has been noted. It is always good to hold a record of all the withdrawals and deposits. And it is safe to keep accurate information in the form of debit slips and ATM.
It is a bad habit not to reconcile the accounts. It is safe and an effortless way out if people follow the internet banking facility provided by all banks. It is always safe to keep an eye on your account to prevent any kind of fraud. These financial habits will be a redeeming quality amongst the other bad habits followed by us.
Best Wishes, Coyalita
See Tomorrow: “Illegal Bad Habits “
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