Many people set goals for organizing finances and fail to achieve expected results without knowing exactly why. For effective personal financial control, we need to avoid certain budget-compromising habits that we don’t realize.
Don’t you know what we’re talking about? Below are some of these habits that should be avoided to have a healthy financial life.
1. Not having a plan
It sounds like an obvious tip, but not a few are reluctant to make a financial plan. Perhaps out of fear of encountering an undesirable reality, people create the false illusion of being able to organize themselves “naturally”, ignoring the source of expenses and what could really be cut. The simple practice of putting what goes in and what goes out of your pocket allows you to see various points that can be corrected. If you want to have a spreadsheet
2. Spend More Than You Get
Even with a well-organized budget, there is still the risk of breaking a simple mathematical rule: if we spend more than we earn, the result will be negative. For personal financial control to be successful, it is vital. It is important to be careful not to finish the hands in red. It is common for people to neglect this aspect, which eventually leads to another bad habit… our next topic!
3. Use the overdraft limit usually
Even for the ease of contracting and its seductive exposure on the bank statement, overdraft is usually used as part of personal income. With this, people are subjected to high interest rates, which become a fixed expense, so natural to use.
While it would be ideal to organize the budget so as not to use overdraft (or at most only in some eventuality), a good alternative would be to hire a personal loan to cover the limit used, the interest rates would become lower. But you have to be careful not to re-enter the overdraft and accrue the two expenses.
4. Buy on impulse
Impulse buying is a major villain of personal financial control, and it is a very difficult habit to fight, but not impossible. A good tip to inhibit the impulse is to always use (and follow) the grocery shopping list. Avoiding going into stores is also a good measure.
Several experts suggest you leave to make purchases the next day. Often the sense of urgency diminishes and the buyer, upon further reflection, gives up on purchasing the product.
Planning to buy a view is another useful tip: In this case, people go to stores knowing what to buy, and it’s easier to avoid including unnecessary items, unlike what happens in installments.
Avoiding bad habits is a big step towards a balanced budget. With the tips presented here and a good deal of discipline, you can get very expressive results. It is good to always keep in mind that financial health directly reflects on your quality of life.
Did you like our tips? Share our post with your friends and enriching the debate about the ways to avoid personal financial control. And if you think you have any other bad habits for financial health, leave us comments.