The scary thing about debts is that many people do not actually know how
they get into this predicament. It is like saying that they woke up one
day and found themselves buried under a pile of debt without hardly any
recollection of the events that led to this problem.
The thing is, debt is not something that happens by itself. Debts are caused by concrete events in your life, which can be anything from a job loss, divorce, health condition, and so on. It could be also be brought about by poor financial management and unhealthy spending habits.
Yes, you heard it right. Those little things that you spend for, they can cause you to be deep in debt without you knowing about until it is too late. Here are some of the injurious spending habits that can drown you into a sea of debts. Recognizing these habits is the first step in preventing debts from taking control of your life.
Unhealthy spending habit # 1 – Spending more than you earn
Thanks to the advent of credit card technology, it is now logically possible to spend over $2,000 each month even if what you are earning is only $1,200. Aside from using credit cards, people also tend to dip into their savings and borrow from others just to be able to get away with spending more than what they are earning. But this is NEVER a healthy way to spend money. Limit your expenses to how much money is coming in. If you see that your paycheck cannot sustain your expenses, you either lower down your standard of living or you work extra harder.
Unhealthy spending habit # 2 – Spending tomorrow’s money today
Some people have the habit of spending the money even before it reaches their hands. You may be so sure of the salary raise or the monetary gift that your aunt is planning to give you so you go on a shopping spree today only to find out that your boss changed your mind or your aunt encountered a problem at home and you won’t be getting that money you thought you were going to have.
Unhealthy spending habit # 3 – Spending money you do not have
Credit cards are again to be blamed for this unwise spending habit. Instead of using credit for your expenses, the better alternative would be to use your debit card. This way, you do not incur debts because you would be spending money that is in your bank and at the same time, you get to enjoy the convenience of plastic money.
Unhealthy spending habit # 4 – Using credit cards for regular expenses
For everyday expenses like groceries, gas, clothes, entertainment, and so on, make it a habit to use cash. The premise for this tip is that people are less likely to pay for things that they have already consumed. It is a very bad habit to use credit card in lieu of cash, most especially if you do not pay your credit card bills in full each month.
Unhealthy spending habit # 5 – Using credit cards even when you have cash
There is something about credit cards that make people feel powerful. It is probably the smooth move of taking out a shiny card out of your wallet and swiping it instead of counting bills and coins. But this is the surest way to get yourself into debt. Get rid of the “something for nothing” mindset and use cash or debit card more often than your credit cards.
Lastly and probably, the most dangerous spending habit of all is not changing your spending habits even when you are already deep in debt. Analyze your spending patterns and see how you could learn from your past mistakes. Not realizing that you have a problem with your spending habits would cause you so much more trouble. It would be a good idea to look for consumer credit counseling services for financial advice and to undergo credit card debt consolidation program to make it easier for you to pay for existing credit card debts.
The thing is, debt is not something that happens by itself. Debts are caused by concrete events in your life, which can be anything from a job loss, divorce, health condition, and so on. It could be also be brought about by poor financial management and unhealthy spending habits.
Yes, you heard it right. Those little things that you spend for, they can cause you to be deep in debt without you knowing about until it is too late. Here are some of the injurious spending habits that can drown you into a sea of debts. Recognizing these habits is the first step in preventing debts from taking control of your life.
Unhealthy spending habit # 1 – Spending more than you earn
Thanks to the advent of credit card technology, it is now logically possible to spend over $2,000 each month even if what you are earning is only $1,200. Aside from using credit cards, people also tend to dip into their savings and borrow from others just to be able to get away with spending more than what they are earning. But this is NEVER a healthy way to spend money. Limit your expenses to how much money is coming in. If you see that your paycheck cannot sustain your expenses, you either lower down your standard of living or you work extra harder.
Unhealthy spending habit # 2 – Spending tomorrow’s money today
Some people have the habit of spending the money even before it reaches their hands. You may be so sure of the salary raise or the monetary gift that your aunt is planning to give you so you go on a shopping spree today only to find out that your boss changed your mind or your aunt encountered a problem at home and you won’t be getting that money you thought you were going to have.
Unhealthy spending habit # 3 – Spending money you do not have
Credit cards are again to be blamed for this unwise spending habit. Instead of using credit for your expenses, the better alternative would be to use your debit card. This way, you do not incur debts because you would be spending money that is in your bank and at the same time, you get to enjoy the convenience of plastic money.
Unhealthy spending habit # 4 – Using credit cards for regular expenses
For everyday expenses like groceries, gas, clothes, entertainment, and so on, make it a habit to use cash. The premise for this tip is that people are less likely to pay for things that they have already consumed. It is a very bad habit to use credit card in lieu of cash, most especially if you do not pay your credit card bills in full each month.
Unhealthy spending habit # 5 – Using credit cards even when you have cash
There is something about credit cards that make people feel powerful. It is probably the smooth move of taking out a shiny card out of your wallet and swiping it instead of counting bills and coins. But this is the surest way to get yourself into debt. Get rid of the “something for nothing” mindset and use cash or debit card more often than your credit cards.
Lastly and probably, the most dangerous spending habit of all is not changing your spending habits even when you are already deep in debt. Analyze your spending patterns and see how you could learn from your past mistakes. Not realizing that you have a problem with your spending habits would cause you so much more trouble. It would be a good idea to look for consumer credit counseling services for financial advice and to undergo credit card debt consolidation program to make it easier for you to pay for existing credit card debts.
