In order to maintain a good economy, every individual must realize that they are responsible for the status of that economy. Every individual needs to discard their bad financial habits and make themselves financially strong thereby leading to a strong economy. Here are some of the very basic bad financial habits which the individual must discard:
Primarily, the person must free oneself of the debt mentality i.e. the urge to – enjoy now pay later. A person must strictly follow the Golden rule of ‘cut your coat according to your cloth.‘
Credit Card Usage:
A person must restrict the use of using Credit Card and even while using the Credit Card, he needs to be very conscious about his spending habit because it is but a loan in disguise and incurs an interest if not, repaid within a certain time limit.
Urge to pay the minimum amount on Credit Card:
A person must restrict this habit of paying the Minimum Amount on his credit card.
Missing Monthly Installment:
A person should not miss payment of monthly installment on any loan, mortgage, credit card or hire purchase as this leads to increase in interest.
Beware of ‘Get Rich Quick’ Schemes:
A person must watch his tendency to fall prey to these duping schemes since money invested in these schemes fail to give any returns and also leads to the growth of Black Money.
The Habit of purchasing Lottery tickets is like Drugs. It not only harms the individual but also his family and society in turn.
A person must be careful about his indirect expenses like using a personal vehicle. He should use his vehicle only when necessary because the more he uses it, the more expense he incurs on buying petrol. The system of carpooling should be undertaken.
A person must strictly restrict the addictive habits like drugs, smoking, alcohol, chewing something constantly and beverages.
Restrict Many Children:
A person must restrict from having too many children because raising a child involves a big investment for survival.
Every individual’s capacity to earn and invest is different. A person needs to understand this. Just because a person’s associate is availing some commodity or service does not mean even that person should do the same. He must live according to his capacity.
A person must curb his tendency to buy impulsively.
Purchase of second-hand property:
A person must not buy second-hand property as it involves high expenditure on renovation and repair. Also, it needs constant maintenance which increases the expenses.
It is therefore utmost important to consciously spend every penny and keep track of his investments as to whether it is necessary and also make a savings habit. ‘Habits die hard’- it is really a tough job so ‘discarding bad financial habits’ has to become a regular practice.
Hope, you have enjoyed reading this article and you may figure out some bad habits in you which may involve financial loss/problem. Don’t hesitate to share this piece with your groups, it can help them to figure out their bad habits which lead to financial issues.