If you want to achieve your financial goals easily, you need to have a higher propensity to save than to consume. Regardless of how small your financial goals are, without good savings habits you may not achieve them. So, in this article, we will discuss some of the habits that make it hard for you to save.
Let’s reflect a little before I proceed. What are your financial goals?
Do you want to invest, start a business, or buy a house? Irrespective of what you hope to achieve financially, the first step you should take is to have good savings habits.
The first step to develop a higher propensity to save is to control daily money leaks that make you broke often. If you don’t control these leaks, you are less likely to achieve your goals.
Here are 4 habits that make it hard for you to save your income. And unless you work on these habits, it may be difficult to keep track of your earnings and expenditures every month.
It doesn’t matter how much you earn, if you don’t have good money habits, you will always live a broke life.
Don’t allow anybody to deceive you, a six figures salary job won’t make you rich. It’s how you plan the income from the six figures job that matters.
#1. Impulse Buying
Have you ever been in a situation whereby you saw something online or on the counter, you didn’t plan for it?
But it immediately caught your attention, and you eventually buy it? Well, that is impulse buying. And it’s one of the most dangerous habits that make it hard for you to save.
If you don’t have control over your impulse spending, it may be difficult (if not impossible) to save.
In 2018, about 80% of young people made an impulse buying online. Yeah, that figure is a bit on the high side.
So, these young people abandon the plans they had for their money, only to buy something that caught their attention online.
When you are fixated to always buy on impulse, you won’t have control over your monthly budget. That will make you live a financially reckless life and possibly prone you to financial crises.
How to Change Impulse Spending Habits
- The easiest way to change your impulse spending habits is to resist the urge to spend. Before you spend your money on anything, try to assess if you need it. And if you realize that you need it, do your research about price and alternative deals.
- Always check your card limit and account balance before you buy on impulse. If it becomes necessary to buy on impulse, check your card limit and account balance. Ensure that the purchase you are making won’t interrupt your budget for the month.
#2. Failure to Plan Your Purchases in Months
The inability to plan your purchases in months could be one of the habits that make it hard for you to save. So, if you have a credit card or any other payment method, learn to use them strategically.
If possible, put all your purchases in interest-free months. However, whatever choice you make, must be consistent with your line of credit and your ability to repay.
Again, ensure that your monthly payments don’t compromise your credit limit. Otherwise, it may prevent you from buying important things in the future.
When you fail to plan your finance, you will be in a serious financial crisis in the future. You won’t have savings, and your income may not be able to pay your bills anymore.
#3. Always Paying the Minimum on the Card
One of the habits that make it hard for you to save is when you constantly pay the minimum debt on your card.
When you don’t make effort to pay off your debts at once, such debt would be transferred to the next month. And when this happens, you will end up paying more interest.
Continuously postponing your debt to the next month would only accumulate more interest than necessary.
You should only pay the minimum debt on your credit card if you genuinely don’t have enough to pay the full bills.
However, you can easily pay off your credit card debt by taking these two steps;
- Review your account statements constantly to know your debt balance.
- Try to acquire the highest visibility. It will help you to spend within the limit of your credit cards.
#4. Inability to Control Small Expenses
Your inability to control small expenses is one of the most dangerous habits that make it hard for you to save.
Of course, it’s almost impossible to record your daily small expenses. But it’s important to know the percentage of your income that goes to these expenses.
If you spend money on things like online games, streaming platforms, food delivery, etc on daily basis, check out the percentage of your income that covers these things.
You would be surprised how much money you spend on these little things. The money you spend on renewing your online gaming and streaming platforms may be more than you think.
And if you are not spending on these little expenses, you can easily save money for the future.
These are the 4 habits that make it hard for you to save money.
Do you know of any other habits that could prevent people from growing their savings? Let me know in the comment below.