No one is perfect in the world! And when it comes to handling money, even most of the almost perfect people who are known for being always planned, commit major mistakes. Whether you belong to middle class or premium class, your spending habits may be deteriorating your monthly savings and you might get so much addicted to these improper money handling habits that you may even lose the track your expenses.
No matter what your intentions are, but you must keep away from spending unnecessarily so that your savings remain unaffected. You never know when you may face financial crunch and it may easily exhaust your expenses. You actually save for the unpredictable future and therefore, whenever you earn money, you must first ensure that you transfer a good part of the money in savings and rest must be wisely spent.
Your unaccounted money spending habits can bring a whole lot of troubles for you if you don’t improve them. You struggle with money just because you are unable to gauge what bad habits are actually draining your pockets. If you are suffering from money crunch but are not able to find out the reason for it, then you need to read about these 5 money habits you need to avoid to augment your savings:
Spending on unplanned items impulsively is the major cause for a diminished portion of saving. Such expenses are highly led by emotions and is very hazardous for your monthly finance planning. In fact, if you are strict on saving a huge amount to cater a major expense in future, then you bad habit of purchasing out of emotions will kill all your future goals.
If you see a sale and you see that many of the items are on heavy discounts, then your emotions stimulate you to buy items, which you actually never wanted to purchase. Before making up your mind to spend unnecessarily, you need to logically think about it by convincing yourself that most of these items are not all required and if at all it is needed, then its purchase can be postponed.
It is okay if you indulge in some special treats for you and your loved ones. But make sure that you don’t go for highly luxurious treats when you have not mentioned that in your budget. Similarly, on daily basis you must stop giving yourself treats of luxury such as depending on fast foods when you can have home made food, commuting by vehicle for short distances when you can walk, going for long drives when you know how expensive fuel is and even stop purchasing cappuccinos or fruit juices at work, when you just need water to keep your body hydrated. You must cut down such expenses which have affordable alternatives and thereby, you will definitely save a good portion of money, which earlier had no track.
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Not Preparing Budget In Advance
One of the major mistakes everyone makes while handling money is that they don’t prepare a comprehensive budget in advance. When you prepare a budget, you have a correct idea of all the fixed and variable expenses you make and how income is flowing across the expenses. You have complete control of the money and you can make desired changes to ensure good savings by the end of the month. Preparing a budget is not at all a mighty task when you can easily prepare them in spreadsheets or go online for custom made budget preparation software. If you don’t prepare a budget, then you must actually forget about speaking of fixed savings.
Too Much Personal Expenses
If you are habitual of consuming alcohol, smoking and gambling, then you can’t really have a proper budget planning. You cannot save more money if you are addicted to these habits and you are unable to come of its shackles. If you are highly determined that you want to adhere to a budget, which can save you a lot of money, then it is the right time to quit alcohol, smoking and gambling. You strictly need to control your temptation of spending money on these bad habits and in the process, you will also contribute to your wellness.
You cannot enjoy your savings later if you let these bad habits kill you. So start by carrying a meagre amount in your wallet and leave your bank cards at home for sometime. Since you will have no money for paying for these things, you will gradually lose the temptation to purchase drinks and cigarettes and gambling will also become a thing of the past.
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Depending On Credit Cards
There is big misconception among people that they can use their credit cards in an ad hoc manner when they are using their money in hand as per their budget. But you must not use credit cards unless you are sure that you are able to pay the amount in full each month or you will be burdened with the humongous interest amounts that will keep on multiplying. If you are getting tempted to make purchase above your means then instead of depending upon credit card, postpone that purchase and put it in your future wish list or you may keep paying large amounts for the credit card usage for years and years without even realising when you used it last.