Kinjal Labonnya Haider
The economic crisis of last year taught us how cardinal money management is. The financial situation of anybody can change within a blink of an eye. As the saying goes, ‘A stitch in time saves nine.’ The best way to avoid any financial crisis is to reduce bad expenses. Some of the bad expense habits that you should be looking out for are discussed below –
Living without a budget
If you do not have a budget, you will not know when if you are overspending. It is one of the worst financial mistakes – one that you should leave behind in 2020.
While making a budget, you need to track your expenses to differentiate financial indulgences from necessities. These indulgences often take up a major chunk of your income.
Even though everyone deserves to indulge once in a while, learn to say ‘no’ to yourself if you realize you might be crossing your budget quota.
Getting behind on bills
Fees and interests on late bills can significantly impact your expense budget. It becomes a vicious cycle if you are running tight on your budget.
Not comparing while shopping
If you are about to make a big purchase that takes up quite a portion of your budget, compare and evaluate your decision. It will prove its value in the fullness of time.
Not planning for the future
It doesn’t matter how much money you are making unless you are following a plan. Having a plan will not only protect you from bankruptcy but will also give you some mental peace.
Recognizing a bad expense habit is half the battle. Now is the best time to break free from those and take a step closer to your financial freedom.