Five Bad Money Habits You Need To Change Immediately
For the lucky few who pluck money from trees in the back of their compounds, this article is surely not for you. However, if you, like most other people, have a limited amount of money to spend each month, you need this article. It will help you examine some harmful money habits you have now that drain your bank account, keep you perpetually broke, and will lead to frustration eventually.
Many of us are struggling to adapt to the economic realities of the country because we are deeply rooted in bad money habits that are simply harmful to us. Today, I am going to share with you five bad money habits you probably have that are holding you back from reaching your financial peak.
1. Financial Nonchalance
Some people have no idea of the exact amount they earn in total. Some are unaware of how much they spend each month. Many do not even have financial goals and plans for their finances. You only live once yes, but poverty and lack kill fast. You need to have a mindful approach towards your finances to properly plan and manage your money.
2. Poverty Mentality
I can testify to the havoc that poverty mentality has caused in the lives of people. It is important to realise that beyond making money, the mindset you have towards money and your financial life can go a long way in determining your financial health. Some people are always looking for cheap purchases at the expense of quality in the name of managing money. Others will refuse to make decisions that would improve their quality of life because they view such behaviours as frivolous and wasteful. The irony of this action is that it goes around to bite such people in the back. As an individual, you must be able to draw the line between being frugal with your money and simply having a poor mindset.
Some people have no idea of the exact amount they earn in total. Some are unaware of how much they spend each month. Many do not even have financial goals and plans for their finances.
3. Naira Wise, Kobo Foolish
The original saying is, "Penny wise, pound foolish". However, many people today are concerned with big, major expenses whilst ignoring the smaller ones that add up in their day to day lives. Your weekly lunch dates. Your endless internet subscriptions. Your monthly wardrobe change. Your impulse Instagram purchases. The truth is that it's much easier to notice a one million naira purchase, as opposed to multiple one thousand naira expenses. These seemingly little expenses actually count in the long run. I would advise you to carry out a financial audit, identify areas you've been naira foolish and fix up today.
Many people today are concerned with big, major expenses whilst ignoring the smaller ones...These seemingly little expenses actually count in the long run.
4. Island Behaviour
Also known as, "I can do bad all by myself". No man or woman is an island, and this also applies to your finances. I usually encourage people interested in taking their finances to the next level to get a money buddy. A money buddy should be someone you trust, are comfortable discussing your finances with, can be accountable to, and who is financially literate. Having a money buddy usually serves as moral support and a check for your financial decisions.
5. Debt Mismanagement
As a financially-responsible person, you must realise the role debts play in your finances and how to appropriately manage them. I would advise you to avoid debts as much as possible except it is towards a profitable venture. You should endeavour to always pay off your debts as soon as it is feasible, starting with the ones that have a higher interest rate. You should also avoid accumulating new debts, especially for frivolities. A litmus test for determining the necessity of taking on any debt is asking yourself if it brings you more income in the long run. If it doesn't, you might want to reconsider taking on that debt.
In conclusion, bad money habits will cause a lot of havoc in your life. I advise you to audit your money habits and make the necessary changes. I wish you the best.
ABOUT THE AUTHOR:
Emmanuel Olabode is a writer, actor, and filmmaker. He is the Founder/Creative Director of The OYA Company, a media and entertainment company that produces original content across digital, film, TV, radio, and social media. In 2017, he worked as a Digital Media Consultant to the Chief Press Secretary under Governor Godwin Obaseki, Governor of Edo State. Emmanuel's writing credits include several articles for Business Day, OYA Magazine, and YNaija.