See the worst financial habits a person can have and understand some ways to start changing them.
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Think only about the present
According to BlackRock, peoples show a greater focus on short-term financial goals , with 61% of respondents indicating savings as a way to obtain money and improve their quality of life. The survey also indicated that 47% of peoples have not started saving for their own retirement , when the global average found by the consultancy was 63%.
Achieving a healthy financial life requires short, medium and, above all, long-term planning. Looking to the future and having an idea of plans and goals to be achieved can even be a factor that encourages saving. Living each day at a time can be an excellent way to approach life, but remember that tomorrow may exist – and it is good to be prepared.
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Immediacy and impulsiveness
The survey also showed that 33% of respondents never, or only sometimes, evaluate whether they really need a product before making a purchase, and 45% said they had difficulty resisting promotions.
Acting on impulse can result in bad deals – even for those who are making an investment. Planning is the key to healthy finances . Otherwise, the risks of paying abusive prices, unnecessary fees or regretting a purchase are great.
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Complacency and procrastination
It’s been a year since you last went to the gym or the club, and yet the monthly fee is charged to your credit card every month. The same goes for that weekend free course or that magazine whose issues are piling up on the bedside table in the living room.
The inertia to cancel unwanted services and subscriptions is a bad habit for anyone’s financial health. Although annoying, the task of spending a few minutes on a call center can avoid considerable and, above all, unwanted expenses. Don’t put off until tomorrow what you need to do today , especially when it costs you money.
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Comparing yourself to others
Constantly comparing yourself to others is the perfect trigger for feelings of frustration and unhappiness. The perception that your peers are more successful and happier than you can lead you to commit financial abuse in search of acceptance or to suppress a false sense of lack.
Seeking to follow a lifestyle that is not financially sustainable for you is poison for any budget and the only way out of this problem is to start looking more at your own conditions and achievements. Valuing what you have built so far is more stimulating and productive for planning the future than feeding anxiety about what has not yet been achieved and getting into debt to achieve success before the time.
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Excessive use of credit card
In the race to make your dreams come true in advance, a credit card can be a great ally. Paying for purchases in infinite installments can even ease the burden of an isolated investment, but when added together, the transactions made on your credit card can reach limits that exceed your total income , causing your accounts to end up in the red.
Therefore, concentrating your spending on your credit card, accumulating small, unnecessary purchases throughout the month, considerably increases the chances of a budget deficit .
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Not controlling your spending
Reducing credit card usage, however, requires controlling your spending. To do this, you need to carefully read your bank statement and credit card bill , write down your daily expenses and keep in mind the value of your money.
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Delay bills
One of the main symptoms of financial mismanagement is late payment of bills. Although it may seem harmless to pay a bill or two a few days after the due date, the fines and interest generated by default are unnecessary . In other words, it’s like throwing away money.
In contracts involving larger amounts, such as rent, these fines can represent hundreds of $$ wasted and could have been saved. In utility bills, such as telephone and electricity, these charges usually appear in the following months, increasing your bills and draining your hard-earned money.
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Wait to save
Experts advise, however, that it is never too early to start . The market offers fixed-income investments with minimum investment amounts below R$100. Creating the habit of saving money is as important as, if not more important than, making a good investment, and delaying this start is the first step to sabotaging your financial health.
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Impatience
Once you’ve started making changes to a healthier financial life, you need to be patient to see the first results. Buying a treasury bond or a private pension plan can yield good results, but like any harvest, you need to wait for the right moment .
Waiting for the due dates or the regressive Income Tax table helps to increase your profitability over time. Withdrawing them early, on the other hand, can mean a significant delay in achieving your goals.
In everyday life, you need to have focus and planning to keep everything in its place. Setting aside an emergency fund and different projects, with their own budgets, is a good way to prevent short-term plans from interfering with long-term achievements .