A while ago, I started making a lot of changes to improve my finances. I realized I wasn’t saving the amount of money I desired and after breaking some bad habits, my savings account increased.. a lot! So, today I’m sharing with you 4 bad habits you need to break and achieve financial freedom.
1.Living above your means
Many of us do this without even realizing. For example, I used to dine out every weekend and I clearly couldn’t afford that lifestyle at the time. Some people pay extremely high rents for what I can afford, etc. Figure out what kind of lifestyle you can afford and make the most out of it.
2. Not saving for an emergency fund
Emergency funds are crucial for us to overcome a crisis. Hopefully, we’ll never go through them, but having that money on the side can make a huge difference. This must be a priority.
3. Not having a budget
I know a lot of people don’t like making budgets, but this is key to be able to live comfortably. There are different techniques that will adapt to your life. Here are a few examples: “How to budget your income”, “The ultimate beginners guide to the 50/30/20 system” and “the ultimate beginners guide to the cash envelope method”.
4. Impulse buying
This was a big problem for me. Whenever I’d get into a store, I’d always leave with bags. It really adds up at the end of the month, so always think twice before buying and make sure it’s something you truly need. You can always add a category to your budget and, that way you’ll get to have fun but it won’t have a bad impact at the end of the month.
I hope this was useful and thank you for reading it. I’ll see you in my next post.