People who put off and neglect paying bills will surely end up paying more. So, do not get caught up in this vicious cycle which can consume so much of your financial resources and reduce your financial reward efficacy as well as enjoyment of a financially stable life.
We have summed up all of the bad money habits that you must stop to avoid getting into that debt trap:
1. Never spend every single thing that you have.
This habit is very vile and destructive. Avoid getting broke by not spending every single penny that you have. Never try to spend your savings or other investments on anything that is not useful or profitable. Do away with spending your money on every single whim, just because you have the money. The best way to go is not to purchase anything that goes beyond 50% of your currently available cash.
2. Never ignore or neglect paying your bills and other important matters that come to your post.
The best way to go with bills is to immediately pay or settle them. You can personally respond to any demands as neglecting or delayed paying it can cost you more money in terms of added fees and charges. The same goes with credit or debit facilities as these can come with steeper interest charges for any missed or late payments. There are various companies, public payment facilities, and even electronic facilities you can use that will save you money in paying for your dues. Use them all to your advantage.
3. Check and review all of your bank statements on a regular basis.
This is very useful as it helps you check on forgotten rolling subscriptions that you have to cancel to stop any recurring charges. It also helps you know about the fraudulent charges and financial dangers made by unscrupulous financial companies or banking institutions. Keep up to date with your account and keep an eye on every single detail to ensure that there are no possible problems or mistakes with your account. Credit Made Simple broker Alison Ridges says that with credit reporting requirements can have you penalized when applying for loans if you’re consistently late on subscriptions or late charges are present on your bank statements.
4. Avoid binge buying on anything on sale simply because you can afford it.
Pace out your spending and focus on your savings plan for your retirement. You are not living solely for the moment. Remember the days when you are so broke and you did not have a penny to spend, and nobody helped you? See how helpless and powerless you are when you don’t have the money? Cut down on those unnecessary and luxurious buying. Truth is, you can survive without them. Do not fall into the vicious cycle of buying impulsively and mindlessly, you always have a choice. Choose to say ‘no.’ You are free not buy today and instead save that hard earned money for tomorrow. Stop buying big ticket items so quickly, slowly take your time and find for more savings and discounts whenever you have to buy something. Always remember to live within your means, you won’t need those luxurious items in 10 years time to begin with.