2. Spending too much on disposables.
3. Don’t Plan For Emergencies.
4. Not planning for your financial future.
If you related to not having a budget in number 1, you probably should think about this one too. Not having a financial plan or budget will often make you feel like you are doing ok but will never allow you to get ahead. If you do not have a plan for your money and you see a nice watch, you tell yourself you have the money and buy it, but it might cost you more in the long run. It is important to not only budget for the short term but have long term financial goals. Map out how to get your dream home, vacations, lifestyle, and make it happen.
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5. You spend money as soon as you get it.
Ever heard the phrase, ” Money burning a whole in your pocket?”. Do you have to spend money as soon as you make money? The best way to make this sensation go away is not to see a doctor ( though that will spend a bunch of money quickly) but to budget and plan for your expenses. Do this month by month and see yourself no longer living pay check to pay check. I am not saying never treat yourself, but be sure to put some aside first.
6. You carry a balance on your credit cards.
Broke people always pay more interest than earn it. The first step if you are carrying a balance on credit cards is to stop using them. If you are using multiple, start off by only using one card while paying off all your others. With the crazy interest rates credit card companies charge you, you will never get rich while holding credit card debt. Once you pay off your cards, only use them for purchases you can pay for that day. Use them only to get the perks that come with paying them on time.