Destructive economic habits

One of the problems that can occupy our minds on a daily basis is financial issues. In this article, 7 destructive economic habits are mentioned that if you do not leave them, you will face many economic issues. 

Eating too much fast food and fatty foods, not getting enough sleep, and spending long periods of time on social media are some of the destructive habits we are accustomed to today. Many of us have decided many times to give up our bad habits, but it is not clear how successful we have been. Spending a lot of time on social networks like Instagram will cause us to run out of time, but you should know that having some bad habits causes us very serious issues. This is especially true in financial matters; Because one of the most important reasons for peace of mind is that we do not have to constantly worry about our daily expenses. 

1. Spending more than income:

If there is one destructive economic habit that you need to break right now, it is to spend more than you earn. Get started now and see what costs you can reduce to make less money. If you're not sure where to start, keep track of all your expenses this month. According to the US Congress, the US budget deficit in 2017 was estimated at $559 billion, so even the US government could face a budget deficit if it does not meet its spending.

Spending more than your income will always lead to a financial deficit and therefore will not allow you to make financial progress. According to a study by the Institute for National Studies, one in five Americans spends more than they earn. Your goal should be to keep your spending plan in line with your income so that you do not have to borrow at the end of the month.

2. Not having a savings account:

Imagine for a second you were transposed into the karmic driven world of Earl. Or worse, it's early summer and your air conditioner is having a technical problem. Not having a savings account for the day is not a destructive economic habit that you need to correct quickly. According to statistics, 40% of Britons have less than 100 in savings. This is not just about the low income of these people; Because half of them have an annual income of at least 30,000; While 23% of workers earning less than ۱۳ 13,500 a year are able to save more than 1,000. Not having a savings account makes you vulnerable to unexpected living expenses. Many times you have to borrow money to cover the cost, and this is the beginning of a vicious cycle. Instead of hoping to find a solution this month, set aside some of your income to save. One of the best tips is to save up for the cost of living for 6 months so that you have a good chance of finding a solution in case of any unexpected events.

3. Delay in payment of bills:

If you do not pay the installments and bills every time it is due, it will most likely be forgotten, and you will remember again when you were fined by the bank for being late. Delay in payment of bank installments, in addition to fines, will reduce your points; So you get into trouble for future loans. By paying the bills on time, you can avoid the extra costs and eliminate this destructive economic habit. With the advent of online financial systems these days, any payment takes only a few minutes of your time; So it is better to start working and settle all overdue bills and installments quickly.

4. Do not track costs:

Many people make unnecessary purchases during the month. At first glance, buying a new outfit or gadget may not seem like a big deal, but it does run out of money before the end of the month; Therefore, it is better to record all your expenses and expenses in a notebook on a daily basis. At the end of the month, by looking at the list of expenses, you will have a good idea of ​​what you spend your most money on. Of course, there are many apps like Wallet that make this easy for you. By entering your income and expense list at any time, you can be aware of the exact balance of your account. By constantly following this work, you will be able to remove another destructive economic habit from your list of behaviors.

5. Shopping addiction:

“It is common to use shopping to deal with the stresses and ups and downs of life,” says Gretchen Cleibren, BKD's financial planning director. However, you should know that shopping works like a painkiller and is by no means the main solution. This financial manager believes that emotional buying not only solves the problem, but also makes things worse. Buying things you do not need will save you a large portion of your budget, and you will end up with a lot of unnecessary items.

To prevent this destructive economic habit, you must set rules for yourself; For example, buy only from a shopping list that you have prepared in advance and in a relaxed time. Another rule you can set is to take at least 24 hours before making a purchase to make sure you are going to pay for something that is necessary. Alternatively, you can talk to someone close to you and ask them to stop you from shopping emotionally.

6. Not saving for retirement:

Retirement may seem like a chore for many people when they are in their 20s or 30s, but when left unmanaged, they can be left astray and lose the golden age of savings. Most banks and insurance companies offer a variety of retirement plans. To start saving, it is better to start with small amounts and increase it gradually so that you do not face financial problems in old age. Financial experts recommend that you save 15% of your income to have a decent retirement pension; So if your current income is low, it is better to start with a lower percentage.

7. Do not compare your financial situation with others:

 Many of us measure success with multiple trips, car models, and homeownership, but unfortunately this assumption is not always true. Going on multiple trips requires money, but it does not indicate the amount of wealth of individuals; Because people spend differently. Two different families with the same income may have different lifestyles. One of the families is constantly traveling and riding expensive cars, but at the same time has no savings. On the other hand, the second family has limited travel per year with the same amount of income and has not changed their car for many years, but instead has a good savings account and can retire before old age. To break out of this cycle, you must first set your long-term goals for the next five, ten, twenty to fifty years. Being clear about these goals will help you to spend your money in the right place.