The 5 Worst Habits That Will Get You Into Debt
It has happened to the best of us: At one moment your finances are fine and the next you find yourself in debt. Often a small debt is easily taken care of, but it is important to avoid those habits that get you into debt in the first place, so you don’t find yourself in serious trouble.
Here’s a list of the worst habits you need to overcome to stay debt free:
- Buying Items for Self-Gratification
It feels nice to make ourselves feel better with shopping, but it is actually a very bad coping mechanism that can get you into a lot of trouble. Avoid buying things just because you need to feel better, like expensive clothes, overpriced food and the latest electronic gadget.
We often talk ourselves into believing that our wants represent our needs and this is simply not the case when it comes to luxuries.
- Eating and Drinking Out
It might not seem such a big deal to get yourself a Starbucks coffee every second morning, to eat lunch at restaurants on your break and to drink out with your colleagues, but those are all needless and expensive habits.
Learn how to cook and make your own delicious snacks and drinks, which will save you a lot of money!
Smoking is a very dangerous habit, not only for your long term health, but also for your wallet.
A US smoker spends between $1600 and $3200 on their habit every year. This is a great tax on your finances, especially if you also consider the medical bills that might arise from this problem in the future.
The allure of being the next one that will rise out of poverty by gambling is very strong, but sadly the vast majority of gamblers simply wastes their money and never sees any return in their investment at all.
Gambling is a very dangerous habit that can get your into deep debt and even land you on the streets. Even a little is just a waste!
- Spending More Than You Earn
It is easy these days to spend more money than you actually have, with all the credit cards and payday loans. Fact is that spending money you don’t have is the fastest way to find yourself in deep, deep debt.
There’s only one thing to do: Stop paying with credit cards and save up money so you don’t have to take payday loans. Payday loans often demand a 500% interest, so you end up wasting more money than whatever you bought was worth it.
To avoid spending money you don’t have, you need to write down you expenses and your income with precision and make serious decisions on where you money should be spent.
If you find yourself struggling with habits that lead you to debt, then it is advised to get the help of a professional financial planner, like Dominique Brown, who can get you and your spending habits into top shape!