We have been facing financial problems most of the time. Sometimes this is rooted in our economic failures and there are also times that it is because of our bad money habits or the way we handle or manage our finances. During these times when necessities prices are on the rise because of inflation, paghihigpit ng sinturon in Filipino or strictly using our money only the important things is the best practice.

5 Unhealthy Money Habits You Should Stop Doing

Here are the five unhealthy money habits you should unlearn to reach financial security and freedom.

1. Spending more money than what you earn.

The very first thing to do is check your lifestyle and your income. Sometimes when getting too excited and influenced by glamorous and expensive stuff on social media, we tend to want a new phone,  a designer bag, and other unnecessary things. We tend to spend without considering what our income can only afford.

One of the unhealthy money habits that could lead you to stress is spending more than what you earn.

In budgeting, we should always include the savings that can protect and save us in emergencies, and overspending on irrelevant things will not give us financial security.

Treating yourself with the things you want is fine, but you must also check your earnings. Check if they will be enough to handle necessities, savings, and your desires. But if it is not as of the moment? Think twice before buying or placing an order.

2. Treating credit cards as free money.

Having a credit card is beneficial, especially in times when you need to buy something but are out of budget. Admit it, after the first use you cannot stop yourself from using it all over again. It makes you feel like you can buy anything without money on hand. Sometimes it becomes too much that you do not think twice about buying things including unneeded things.

You must always keep in mind that even if you enjoy using a credit card to buy things your budget cannot afford now, a month later you will have to pay everything with high interest. It is not free money that you will use excessively. Don’t be too enticed by its availability and keep in mind that whatever you buy today using it, you will have to pay more than its price the next month.

3. Delaying payment of credit card bills and loans.

Aside from treating credit cards like free cash, paying them on time is another money habits problem. The interest will add up every time you delay your payment. It can also adversely affect your credit score and limit the amount you can use. 

You always make sure that you will pay what you borrowed on time, because if not?  It will give you problems such as the lender or the credit card agents coming after you. You will receive a lot of calls and warnings, which will be stressful. Other than it might cause you penalty fees and double the interest rate that you will have to pay based on how many days or months you delayed paying it.

4. Living paycheck to paycheck and not saving money.

Living paycheck to paycheck is one of the worst money habits you can do. It is a way of living where once you receive your salary you spend it all then wait for the next payout and spend it again. It is an unhealthy habit that will not let you save anything. You would not have anything to use for emergencies. 

There’s no money in here but just spending and if you are doing this routine, you have to stop. You do not have financial freedom and security with this one. You have to make a definite budget plan for your monthly expenses and make sure that there is something allotted for savings.

5. Not doing ways to increase your profits.

Of course, if you want to attain a certain lifestyle that is costly and if you want to increase your savings, living with your salary alone would not be enough. This applies to people who only receive minimum wage. But if you have a high-paying job enough to sustain your needs and wants then you’re good to go, but if not you might need to find more sources of income.

You can find a freelance job. Offer tutoring lessons, resell products, or open a small online business. There are many ways to increase your income aside from waiting for a promotion. This may sound quite tiring, but it is for the best, especially if what you are earning is not enough.

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