Habits are an integral part of human nature. Each of us has different ones, both useful and harmful. However, some financial habits are common among many people.

Even with a deep knowledge of managing household finances, it is often difficult to achieve the desired result and become more frugal. We tell you which financial habits you should adopt and which ones you should get rid of.

Another post about Affiliate Marketing and Financial Psychology.

HOW TO DEVELOP USEFUL FINANCIAL HABITS

Even a clear plan of action in this matter is not always enough. Negative financial habits hinder the achievement of goals, becoming obstacles on your way, distancing you from the cherished dream of accumulating capital.

PAYMENT OF COMMON BILLS

Often there is such a practice: one person in the company of friends takes it upon himself to pay the bills for all, and the others promise to give him his share later. At first glance, this may seem convenient, but in fact such a habit is fraught with financial problems and conflicts in friendships.

WHY IS PAYING FOR OTHERS A BAD IDEA?

Debts have a tendency to accumulate. If you regularly pay someone else’s share, the amount can grow to an unpleasant size. Then it will be difficult to pay it back, especially if friends have financial difficulties.

Creates a sense of inequality and dependence in friendship. One pays and the others owe is an unhealthy dynamic for relationships between equals.

There is a high risk of forgetting who owes what and how much. Over time, amounts and situations become confused, leading to arguments and resentment.

Encourages an irresponsible attitude to money in those who are used to not paying for themselves.

WHAT IS THE BEST WAY TO PROCEED?

The most honest and unproblematic way is for everyone to pay their share of the bill at once. This way no one is in debt, there is no imbalance in the relationship, and financial responsibility is shared equally.

Develop in yourself and others the habit of paying at once. This way you will avoid a lot of problems in the future and maintain clarity in financial matters. Pay only for yourself – this is the principle of honesty and mutual respect.

SPONTANEOUS PURCHASES

Spontaneous purchases are the Achilles’ heel for many of us. They trip us up in stores when we see tempting displays or enticing promotions. By impulsively buying unnecessary items, we waste money and create clutter at home. But there are ways to deal with this bad habit.

First, make shopping lists and follow them strictly. Before going to the store, think through what you really need. Don’t let brightly colored signs and advertisements confuse you. Focus only on your planned purchases.

Second, analyze your impulsive desires. Often we are drawn to unnecessary things not by real needs, but by emotions caused by marketing tricks. Ask yourself: “Do I really need this or am I falling for a publicity stunt?”.

Third, set a rule of endurance for yourself. When the urge to buy something hits you, don’t buy it right away. Give yourself time to think about it – a week or a month. If after this time the desire has not faded, perhaps the purchase makes sense.

Finally, try to avoid situations that provoke impulsive spending. Go to stores only when necessary, not just for fun. And never go shopping hungry – it’s hard to control temptation in this state.

Refusing to make spontaneous purchases will bring your budget and home in order. You will save money and get rid of unnecessary junk. So arm yourself with self-control and follow a plan on the way to sensible and considered purchases.

BORROWING MONEY

When friends or relatives ask you to borrow money, it can be hard to say no. We want to help, but borrowing money carries a lot of risks and can seriously complicate relationships. That’s why it’s best to stick to the golden rule: never lend money you can’t afford to lose.

One of the main problems is that most people are reluctant to pay back debts or forget about them. Debt disputes spoil the atmosphere, cause tension and can destroy even the strongest relationships. You will have to constantly remind about the debt, which is fraught with resentment and mutual recriminations.

In addition, there are often disagreements about the amount of debt and interest. One party considers one amount, the other – quite different. The absence of a written contract opens the door to misunderstandings. And an attempt to collect the debt through the court is fraught with high costs and headaches.

If you lend money, you run the risk of saying goodbye to it forever. The debtor may lose his job, go bankrupt, or simply disappear, leaving you penniless. You lose not only the money, but also the sense of financial stability that is so important.

Lending money to friends and family is a direct path to financial problems and damaged relationships. It is better to learn to say “no” to such requests, regardless of the pity stories and guilt. If a loved one is really in trouble, you can help them in other ways: temporarily provide shelter, give them things or food. But never with money. Otherwise, the bad habit of borrowing can destroy your well-being and social connections.

COMPARE YOUR OWN AND OTHERS’ FINANCES

In today’s world, comparing ourselves to others has almost become the norm. On social media we see the luxurious lives of celebrities and bloggers, and on the streets we meet people in expensive outfits and with fancy gadgets. Involuntarily you begin to envy their financial well-being and blame yourself for the lack of money. But comparing your finances with other people’s is a bad habit that you should get rid of.

Remember – what you see on the outside rarely corresponds to the real state of affairs. Behind the chic facade often hide loans, debts and exorbitant spending, which people simply do not show publicly. Your neighbor’s expensive car may be on lease, and designer outfits may be on installments. Don’t take everything at face value.

Also, everyone has different life priorities and financial goals. Someone saves money on clothes, but drives a luxury car. Others make do with modest housing, but allow themselves expensive travel. Others prefer to invest in their children’s education rather than in restaurants. It is impossible to compare without knowing all the circumstances.

The habit of comparing income and spending is destructive to the psyche and self-esteem. It breeds envy, resentment and leads to unhealthy financial decisions like buying for the sake of ponts or trying to live beyond your means. This is fraught with debt, credit and stress.

Instead of making ruinous comparisons, focus on your goals and capabilities. Make a financial plan, set aside a little for dreams and desires. Go to your well-being gradually, step by step, without looking at others. Appreciate what you already have, save and use resources rationally.

Remember a simple truth – you are neither worse nor better than others. Everyone has their own path in life. Therefore, get rid of the bad habit of envy and equal to others. Trust yourself, and financial success will not keep you waiting.

SPEND ALL THAT IS EARNED

In today’s world, we are constantly faced with the temptation to spend all the money we earn at once. Advertising, social media, storefronts – all this is aimed at making us mindlessly part with our blood money. But it’s a destructive habit that jeopardizes financial stability and dreams for the future.

When you spend every last ruble, you put yourself in a vulnerable position. What if there is an unforeseen loss of income due to illness, layoff or force majeure? Without savings, you risk being left penniless, having to rely on the state or relatives for help.

Also, squandering all your income will never save for anything significant. Large purchases, such as housing or children’s education, will be unattainable dreams for you. You are doomed to forever rent an apartment and deny yourself and your family a better future.

Start small – modestly save at least 10-15% of your income. If possible, increase this amount. Do not be afraid to deny yourself momentary pleasures for the sake of a big goal. Money has an amazing property – the more you save, the faster it grows.

Reconsider your spending habits. Think about how much of what you spent was really necessary? Learn to distinguish needs from wants and whims. It’s difficult, but once you master this skill, you will gain financial freedom and security.

CREDIT CARD ADDICTION

Credit cards have become an integral part of modern life. They are convenient for cashless payments and allow you to make purchases when cash is scarce. However, for many people, credit cards have become a trap of debt and addiction. It’s time to break this vicious cycle and free yourself from credit slavery.

The main danger of credit cards lies in the ease with which one can get into debt. People buy anything in anticipation of getting their next paycheck or bonus. But then debts grow like a snowball, high interest rates and penalties strangle the family budget. The financial situation becomes unmanageable.

Credit card addiction blinds people. They stop clearly distinguishing between real needs and impulsive wants. It seems that in a month or two everything will be back to normal. But while they give free rein to their weaknesses, debts continue to grow exponentially.

As a result, people are forced to put more and more new expenses on their credit cards in pursuit of the chimera of “catching up next month”. They get used to living beyond their means, and the illusions of a better life are shattered because of unsustainable interest on debts.

The way to get rid of addiction is simple, but requires iron discipline. The first step is to stop using credit cards altogether. Hide them away or cut them up altogether. The second step is to make a strict plan to pay off existing debts from your monthly income. Refuse any unnecessary spending until you pay it off.

If possible, try to find a part-time job or another source of income. Direct all available funds only to repay the debt. After a while, the burden of loans will be removed from your shoulders.

The main thing is to return to common sense and financial discipline. Buy only what you can afford with cash. Try to set aside at least a little bit of money each month.

KEEP A RECORD OF YOUR BUDGET

It’s very easy to lose control of your finances today. Money literally flows through our fingers for daily purchases, bills, and entertainment. At one point, we may find that the lion’s share of our income has evaporated somewhere, and our dreams and goals seem unattainable.

To prevent this from happening, you need to keep track of your income and expenses – in other words, budgeting. This simple skill will allow you to always be aware of your financial situation and competently manage your funds.

Keeping a budget starts with recording all income and expenses. Make a detailed list of sources of income – wages, part-time jobs, interest on deposits, etc. Then write down absolutely all your expenses – from monthly bills to unplanned purchases.

After that, categorize your money – rent/mortgage, food, transportation, clothing, etc. Try to find opportunities for savings in each category. Cross out unnecessary spending, excessive amounts, non-essential items.

Allocate a fixed amount for savings, investments or debt repayment. Let it be small but stable – this way you’ll train yourself to save for the future with every income.

Careful budgeting allows you to not only control your spending, but also achieve your financial goals. Choose your goals – to save for a down payment on a home, to pay for your child’s education, to go on a trip. And then calculate how much money and how much time you’ll need to set aside each month. Include this amount in your budget as a separate line item.

You can keep records in a notebook, a spreadsheet, or with the help of special applications. Choose the method that is more convenient for you. The main thing is to be disciplined and fix all the expenses, even the most insignificant.

HABITS THAT CAN EAT UP THE ENTIRE BUDGET IN A MOMENT

Sometimes it seems that money seems to flow through our fingers, leaving us with nothing at the end of the month. The reason may lie in certain bad habits that eat up the entire budget like a black hole. Let’s take a look at some of these financially destructive habits.

Let’s start with the most obvious one – impulse buying. Sudden impulses to buy something under the influence of advertising, discounts or window displays can suck huge sums out of your wallet. Each spontaneous spending separately seems insignificant, but their aggregate causes serious damage to the budget.

The next financial vampire is mindless subscriptions and autopayments. Once you subscribe to a service, money starts disappearing automatically from your account month after month. Small amounts are especially insidious – they easily slip out of sight, but accumulate quickly.

Gadgets with applications that provoke spending are not lagging behind. Downloading a game or program, you can fall for the developers’ tricks and lay out a tidy sum for virtual trinkets and currency. But this money could be spent on something more worthwhile.

Another bad habit is to order food delivery or do not cook at home. It steals money in two ways at once – markups of establishments and tips to couriers. But for the same cost, you can prepare many more meals for the whole week.

Entertainment costs like bars, restaurants and movie theaters can also suddenly dry up the budget. One fun night out costs like a good chunk of your monthly income. And if such events become a regular occurrence?

Finally, you can not discount bad habits associated with alcohol, cigarettes, gambling. They burn money, health and financial well-being at the same time.

Most of these habits can be controlled and eliminated. You just need to keep track of your spending, set goals and priorities. And remember – every unnecessary purchase distances you from your real desires. So reconsider your lifestyle and give up your budget-eating habits!