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This post, “Leave Behind These 8 Bad Financial Habits in 2017,” is a guest post by Carol Soriano, a consultant for PawnHero.ph, the very first online pawnshop in the Philippines. A writer at heart and a social media enthusiast, she is passionate about personal finance, investment and all money matters.
It’s 2017! Were you able to save up money for the New Year? Have you been able to reach your financial goals? If you failed to do so, it’s time to turn over a new leaf and correct those bad money habits from the past year.
Your financial goals should include setting target digits for your savings account and having funds to cover you during emergencies and whatnot. Should you ever find it hard to reach your money goals even after trying, there must be a rooted bad financial habit that’s keeping you from achieving financial success.
To help you reach your goals in 2017, below are eight bad financial habits that you should be really ditching this new year!
1) Living from paycheck after paycheck
A common financial crime amongst the working class is having a one-day millionaire lifestyle. This means getting by living from paycheck after paycheck. They may have the job, but they don’t have the stable income. If this is a habit to which you’ve become accustomed, stop!
This is troublesome to your financial and personal well-being since living up to the “first day after paycheck versus last day before paycheck” meme is just exhausting. This scary habit leaves you without any safety net as you only rely your financial security with your job, and the thought of it is alarming! If you only have one stream of income like your job, then you especially might want to reconsider your saving habits.
2) Being brand conscious
They say, you are what you wear, but not entirely! Sometimes, a good Prada covers up the real financial situation. There are those who maintain their financial reputation through brands. But as Psychology 101 dictates, material things do not maintain steady happiness. Having a brand conscious mindset won’t get you to your financial goals.
So, while you cannot afford to both buy a branded item and save money at the same time, make it a priority to save first! Save for the first three months and eventually, you will make it a habit to be frugal instead. Those brands can wait; your finances don’t.
3) The love for foreign products
Going to grocery stores and shopping on the imported aisle section just because you think it defines who you are—expensive—doesn’t help… at all! Frankly, you can go after budget-friendly goods and save more. The only difference is the brand and the tax that comes along with it. So, go local, spend less to save more moolah.
4) Investing for instant gratification
Those social media money talks about investing on networking and other easy money schemes can be a headache. Keep in mind that money doesn’t grow on one sitting while waiting for recruits to cash in. It doesn’t work that way. But there are those who still fall prey to this investment pitfall.
If you are serious about growing your money, get inspirations from overseas workers-turned-entrepreneurs who became rich through smart investing. Remember, investing requires patience.
5) Dependence on family or friends for financial stability
Being dependent on family or friends for financial stability is a bad habit to follow. If you have been making them your last resort for financial security, there’s something wrong with how you manage your finances. There’s nothing more embarrassing than being capable of earning yet incapable of paying off debts.
Strive to a point to save enough, avoid wants, prioritize needs and save your face from asking a favor to owe money from your family or friends.
6) Lack of financial literacy
Being financial literate means understanding how money works to make more. If your expenses are greater than your savings, you have a big problem. But don’t feel bad, you can still be financially savvy. By asking the right people, learning about investments and developing a saving habit, you can become financially literate. Moms are known to be good with money. Try getting budgeting tips from moms to learn from the best.
7) Late working age
Traditional working age is 21 (FinanceSuperhero note: This varies from community to community), but it doesn’t mean you have an excuse to make money mistakes at this age. In fact, you are a young adult. That means you need to be financially responsible as well.
Your money habits start young, and like the saying goes, old habits die hard. Always start young with how money is being managed.
8) Aspirational lifestyle
While most try to climb from lower to middle class, the majority live for the aspirational lifestyle. Peer pressure and social media may have played an important role to establish this ideal. The practice of sacrificing a budget for the sake of an aspirational lifestyle is damaging. If this is one habit you’ve been living through, then it is high time to quit.
Financial security should be a serious responsibility when adulting. You don’t want to be frowned upon for your bad money habits, and most of all you do not want to regret not having been a smart saver at a young age. So, with the New Year, you have a fresh start and a clean slate to make your financial goals count! Stop promising and start doing. It will pay off!
Has your 2017 gotten off to the start you imagined? What bad money habits do you need you ditch this year?