Why did it happen? Our current financial condition related to our habits in managing personal finances. Human shaped by the habits that every time he did. In financial terms, a person's success and failure in achieving their financial goals is largely determined how the habits of the person in managing his personal finances.
Here I would like to share three bad financial habits and how to fix them:
Accumulate credit card debt
True credit card is a tool for us to simplify the payment process. With increasingly easy to obtain credit cards, many people began to accustom themselves to pay for everything by credit card, this habit is good only when the credit card bill is always paid in full every due date.
But if paid every due date only the minimum payment, this is a habit that will bury a person in debt ever growing pile of credit card interest rate plus the ever-increasing many times over.
The only way to solve this problem is to STOP using credit cards, familiarize yourself to conduct financial transactions with cash, then use all the extra money that you can get each month to pay off credit card debt. You will make progress in achieving financial freedom when you stop using credit cards to purchase goods / services beyond your ability.
Spending exceeded income received
The habit of spending money than the income received is one of the bad habits that hamper a person to achieve financial freedom. This habit is the root cause of a lot of people have debts that had accumulated.
And this practice applies to people in different income levels, a mediocre income and whose income is more than enough. Everyone has to start learning to have enough flavor.
Feeling pretty good this is a habit that will really help to fix bad habits spending exceeds income received. I'm sure if we can distinguish which one needs and which will, most of us already have enough income to meet basic needs for survival. If our income each month is still not enough to meet our basic needs, take extra time to earn extra income to suffice the basic needs.
Trying to compete and to equate yourself with other people
Often you see a neighbor driving the latest and past the front of your house. Then you start thinking, "Wow, he just could buy a new car, why do not I?". Encouraged by such thoughts, you decide to go to fairs or car sales outlets and buy the latest car using a car loan facility.
In fact, in reality it's not necessarily your neighbors can afford to buy a new car. So, you and he were both buying a car that has not been able to buy just to compete with each other.
Starting from cars, mobile phones, watches and other desires, your debt will be mounting. If the debt is not resolved then it will push you fall into the abyss of debt. You have to understand that material wealth can not lead to happiness, have enough sense to everything and satisfy your desire only when you've actually afford.
Thus three bad financial habits and the ways to change habits that become good habits to achieve financial freedom that has always dreamed of everyone.
Do you have other habits that hinder the achievement of your financial freedom? Please share here and together we will discuss how to handle it.
Post a Comment