A financial expert has named 6 habits that cause you to run out of money all the time

A financial expert has named 6 habits that cause you to run out of money all the time

If you’re tired of living in debt and teetering on the brink of poverty, catch this self-help guide.

financial expert, family wealth expert

“Illiterate money management today can be classified as a bad habit. If you are tired of lavishing and then starving, you need to change the model of financial behavior. Start by correcting the following six mistakes.”

Mistake #1. Not examining your spending

Each of us needs to make a monthly budget so we don’t make mindless purchases. This will help you see all your spending and income in advance. Try to make sure that there are more receipts than expenses. Strive for this, look for additional sources of income. In your personal budget, control the limits for each category. Be sure to take into account urgent payments such as rent, loans, mortgages, tuition.

Mistake #2. Pay for everyday purchases with a credit card

Having no limit on your card gives you a deceptive sense of freedom. It’s very easy to fall into this trap. This is especially true for impulse purchases when you “just want to.” Don’t go to the store with a credit card, learn to control your desires. Set limits for a day or a month, or better yet, leave your card at home.

Mistake #3. Make purchases “in the moment”

Purchasing some goods or services can be planned in advance. For example, buying seasonal items. Some sellers even make discounts for such a category. So, winter tires will be cheaper in the summer. And even a vacation can be booked in the off season to save money and not get into a tourist frenzy. Compliance with this rule at first glance seems insignificant, but it saves a good amount of money on the balance.

Mistake #4. Buying without control

Many people follow the tactic of “like it – buy it”. They apply it to different categories of goods. Ill-considered purchases very often lead to poverty, as there is no control over your spending. Accustom yourself every time to think carefully about whether you really need a particular product or just want to buy it. It is quite likely that another pair of shoes is not that necessary for a happy life.

Mistake #5. Looking up to others

The desire to be better than others often reflects badly on your budget. Someone is ready to take large loans for cars, gadgets, just to not appear poorer. It’s a vicious circle, really. As a result, a person gets stuck in endless interest payments and debts. The problem would not have arisen if he had bought goods from the middle price segment.

Mistake #6. Fall for marketing tricks

Bright price tags with discounts, promotions, favorable offers are now found in absolutely all stores. Their main task is to create a feeling of lost profit and encourage the buyer to throw another product into the cart. Even if he doesn’t really need it. Next time, consider whether you really need a third packet of sauce, which already has a short shelf life. A shopping list and weekly diet planning can help you deal with marketing tricks.