Like it or not, our finances are a major part of our lives. This is because we need money for satisfying almost all aspects of our existence- food, clothing, health, shelter, and so on. Even though most of us know how important money is, we hardly seem to become serious or disciplined when it comes to money management.
This inability to handle income and expenditure efficiently leads to a number of problems in our lives. Living in and out of debt, paying off EMIs, and interest rates for a good part of your existence are something most of us do not want to do.
In this article, we will look at five wrong habits, which prevent us from becoming financially disciplined. In addition, we will also examine the role of habits in creating a better financial future.
Why Habits are Important for becoming Financially Disciplined?
What people do not seem to realize is that more than improving income streams, being financially disciplined is all about habits. If you look at ron legrand review net worth, you will realize the importance of habits.
A person who earns two hundred thousand dollars a year might be living without any mortgage debt, credit card payments, car loans, or student loans. He or she can also have a lot of savings in banks or in other assets.
A person who earns two million dollars a year might be paying all of his income in credit card interests, home loans, car loans, etc. He or she can also have zero assets or investments to show for the income.
More than money, habits are important to lead a financially secure and safe life. Habits are something, which defines our financial personalities and enables us to lead our lives in a peaceful manner.
List of 5 Wrong Habits which prevent you from being Financially Disciplined
1. Impulsive Nature-
Some of the most famous self-made millionaires state that financial decisions should never be made impulsively. This means buying a new car or going on a vacation should be planned in a detailed manner over a period. This will allow you to assess all the pros and cons and take the right decisions in an appropriate fashion.
2. Emotional Influence-
If you want to be financially secure, you need to start learning how to say ‘No’ to a lot of people who come up for help. Many people have a bad nature of asking their friends and relatives for money. These people are unserious about doing things on their own and know that they can always fall back. It is important that you let go of being emotional in financial affairs.
3. ‘Living in the present’ Mentality-
If you ask someone why are they not saving for the future, they will say that they prefer living in the present. However, what they might not tell you that their present is riddled with debts, interests and loans. It is important to build and think about your future from an early age. Nothing should be taken for granted as the pandemic has already demonstrated.
4. Being Ignorant-
How many times have you hear someone say, ‘I know everything!’ Being ignorant is not a virtue. You need to be aware of how normal things like savings work or how do credit card companies cheat you with high interest rates. It is also equally important that you keep learning and improving your skill set all the time. This will allow you to spot the right opportunities.
5. Being Risky-
Being risky might win you brownie points with your friend circle, but it is not something, which will help you on the road to financial security. It is important that you try to avoid financial risks as much as possible. This includes lending somebody money and expecting them to return the same when you will have the need for it. These kinds of risks should be avoided.
The Final Word
Being financially independent will allow you to be in a positive mental space all the time. It will also keep away ailments and health conditions from affecting your life for the worse. Can you think of some other bad habits, which should be avoided? Let us know in the comments below.