Bad Habits in Managing Finances Everyone must have their own way of managing their finances or finances. Managing finances is not easy, there are many outstanding methods that can be applied to help our financial health.
What if we have followed the method, but our financial situation is still not good? maybe because you have bad habits in managing finances.
What are some bad habits in managing finances? Let's see the explanation.
8 Bad Habits in Managing Finances
1. Lazy to Record Expenditures
The first habit that we often do in managing finances is to be lazy to record expenses. In fact, recording expenses is an important activity in managing finances.
Get in the habit of recording every expense, even for small things that look simple, such as small snacks on the side of the road. By recording all expenses, you will know the flow of finance in and out.
2. Tempted Discount
Discounts can be both a boon and a catastrophe for your finances. When we see a discount, we are often tempted to buy something. It's not really what we need though. As a result, the goods we buy cannot be used properly, our money also disappears very well.
Think before buying things. Discounts can be a gift if there are items we want to buy and we really need. But, if we don't need the item, don't be tempted to buy it.
3. Depend on Credit Card
Having a dependency with credit cards is also a bad habit. Especially if you think of a credit card as additional money that you can use to fulfill your desires.
When you buy something with a credit card, you may be very happy that day. But, don't forget the credit card bill that comes to you next month. So, use a credit card wisely only to buy things that you need or are very urgent.
4. Not Setting Up an Emergency Fund
One of the bad habits in managing finances is not setting up an emergency fund. Even though an emergency fund is an important fund that will help you when you are urgent.
You cannot predict what will happen in the future. By having an emergency fund, you don't have to worry anymore when you need money for emergencies, such as accidents, illness, layoffs, and others.
So, start preparing an emergency fund, come on!
5. Taking Online Loans
With the easy terms of taking an online loan (loan), many people are tempted and take a lot of loan. Then, they will have a hard time paying the bills. There have been many such cases in Indonesia.
When taking a loan, we are indeed tempted by the amount of money that can be taken and the terms are very easy. We have forgotten the high interest charged. When we are unable to pay, our interest and loans will be in high spirits and can even exceed the amount of our initial loan.
Therefore, it is better to prepare an emergency fund in advance than to be in debt.
6. Investing Without Strategy
Lately, investment is widely discussed. There are many people who are financially literate and are starting to learn to invest. However, investing is not easy. Not a quick way to double the money either, huh. There is strategy and persistence in investing.
Don't start investing just because it's a trend and you're jealous of how many people have succeeded in investing. You start jumping without any strategy. Maybe instead of profit stump, you know. Learn and prepare your strategy when investing, yes!
7. Not Budgeting
You have to set a budget if you want a healthy financial condition. Prepare a budget you must do as a benchmark in managing finances.
Make a budget by determining your needs for the next month, make the needs you need to buy, how much it will cost. Also determine your financial priorities. After that, follow the budget you made. That way, your finances can be managed properly.
8. Not Setting Financial Goals
When making a financial plan, you must also set your financial goals. It's better if you separate the money for each of your goals. Financial goals are targets that you want to achieve, such as children's school funds, savings to buy a house, marriage savings, and others.
By making your financial goals, you will prioritize those goals over buying unnecessary things to fulfill your desires.
Also Read: 7 Ways to Save in the Month of Fasting
Change your bad habits from now on because there are many things that arise from your habits, you know. Starting from your finances being chaotic, your needs not being met, being in debt, and so on.
Well, to help you manage your finances, you can use the Whiz Money Management App. There are many features that you can use. You too not need to bother making expense records, you know. Because all your financial activities will be automatically recorded.