4 bad money habits you need to break Â
For many people the start of a new year is a chance to look back and to set some new goals or resolutions for the coming year.
If you havenât got round to setting any resolutions yet, I am going to help you.
I am going to talk about 4 bad money habits that you need to break.
Dealing with money issues and organising your finances for some people is a daunting prospect.
But, every once in a while, it can be worth putting some time aside and making sure everything  is in order.
Often, our worst money habits arenât necessarily through bad decisions we have made, but rather by a lack of action.
Doing nothing is always an easy decision, but itâs rarely going to be the best thing for your finances.
Below are 4 habits and mistakes that need to be kicked out of your financial life.
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Not keeping track of your monthly income and expenditure
Setting a monthly budget is an essential first step for anyone looking to keep the finances in order.
Make sure you know what youâve got coming in each month and whatâs going out â both your essential outgoings ( things that have to be paid – bills etc ) and the more discretionary things ( nice too’s – clothes, treats etc).
It sounds obvious, but if youâre consistently spending more than you earn, youâre going to find it harder and harder to keep your head above water.
And if you do have a surplus each month and youâre not doing anything with it, youâre missing out on an opportunity.
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Only holding cash and ignoring investing
If youâre holding all your savings as cash, the first thing to say is well done for actually saving â but could your money be working harder for you?
A cash account can be a great if you need access to the money at short notice or in the next few years (we should all have an emergency fund), but often money is held in cash purely through a lack of knowledge or understanding of investing.
Exploring the option to invest can mean giving your money the chance to grow.
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Putting off making money decisions – are you a procrastinator !Â
Whether itâs switching bank accounts or starting a savings account, it takes up time.
Time weâd rather spend doing something else.
But just like any decision in life, addressing the issue sooner rather than later is usually the best option.
This should result in less time worrying and more time reaping the benefits of a decision well made.
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Not thinking long term
It can be hard to focus on the long term when thereâs so much going on in the here and now, but the longer you save for, the more chance your money has to grow
ACT NOW !
Thereâll always be conflicting needs and goals for your money and it can be easy to prioritise whatâs happening soonest.
Maybe none, or maybe all of the above, apply to you â even so the key message to take away is that you need to be in charge of your own financial future.
Swap the worry and procrastination for action, and get your finances on track.
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My diary is always open for a chat about how you can get greater control of your finances.
I wish you a happy, healthy and prosperous 2021.
Lee Gardner