Many of us have some bad money habits that we need to work on, because bad habits hold us back. They stop us from reaching our goals and they often keep us ‘strapped for cash’, tired, and unhappy. Reason enough to ditch bad ones for some good ones!

Posted in: Insights, News

21/09/2021

4 Bad Money Habits To Change Today

Many of us have some bad money habits that we need to work on, because bad habits hold us back. They stop us from reaching our goals and they often keep us ‘strapped for cash’, tired, and unhappy. Reason enough to ditch bad ones for some good ones!

The ability to look after your finances is one of the best predictors of success. 

1/ Bad Credit Card Debt

If you’ve got any bad debts or some credit cards that are no longer serving you well, then you need to get rid of them. Credit card debt is the most expensive kind of debt with your bank getting rich by ripping you off with high interest rates. Pay off your credit card in full each month before you make more purchases.

2/ Spending More Than You Make 

It is far too easy to overspend! There are too many temptations and with online shopping, we know all too well that purchases are available at the click of a button. It does require a lot of discipline not to spend too much but there is also ‘overspending’. Stop paying too much for things.

Use coupon codes, discount codes and shop sales when you can.

3/ Investing is too scary

Investing sounds all too scary and any mention of the share market, and whaat!? Where do I start?? It doesn’t have to be this way. You can actually start with very little money to invest, and some stocks and shares will start you off with free ones if you know where to look. Being your own investor, whether a beginner or not, means you won’t get charged commission or advice fees, and you can buy and sell stocks for little cost. 

4/ Guessing your budget

Stop guessing how much you have to spend each month. The 50/30/20 method is one of the simplest ways to get your spending in check. No spreadsheets or major lifestyle changes required. 

Take your total after-tax income each month, and divide it in half. That’s your essentials budget (50%). Take the rest, and divide it into personal spending (30%) and financial goals (20%). That is 50% for things like bills, groceries, minimum debt payments and other essential spending. Which leaves 30% for fun - takeaway, your Netflix subscription, that coffee from your favourite cafe. That leaves 20% for your financial goals like paying off as much as you can on your credit card, along with retirement savings and investments.

If you can manage your money, stick to a budget and save, it shows you have the kind of self-control and maturity that is needed to be successful in life and to see something through.

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