These Money Habits Might be the Reason You are still broke…

That headline sounds like we’re choosing violence, right? Well, yeah, it has to be because, when it comes to fixing your finances, it is no small business, and we are serious about it.

Ever found yourself in a situation where you made promises to yourself concerning fixing your finances or saving better but ended up failing wholeheartedly at that? Well, it’s not as hard as maintaining a romantic relationship, but somehow you can’t maintain the money promises you make to yourself — except the ones that have to do with flexing and living your best life, of course.

Contrary to what you think, no, it’s not your village people that are after you; you might just be suffering from bad money habits. But thank your stars we’re here today to wipe away all your money sins.

Like every other type of habit, bad money habits start unconsciously, and the next thing you know, they’ve become normal even without you noticing them.

You might be guilty of one or more of these bad money habits.

1. Not sticking to the budget

A budget helps you itemize everything you need, either for the month, week, etc. and covers the exact cost you’ll need to sort these out. The budget is like your plan on how to spend your money to cover your needs and wants, and it helps you stay disciplined. But when you do not stick to the budget, that’s when you start overspending on things you didn’t even plan for, and the next thing you know, you’re broke.

2. Impulsive spending

When you’re trying to get your finances in order, you can’t afford to spend unnecessarily on things. Buying on impulse is one of the fastest ways to get to the land of brokelin because once you keep buying everything you see that entices you, you quickly run out of cash. This impulsive spending can be very unconscious sometimes, especially for emotional spenders. But the best way to overcome this is to create a budget and stick to it.

3. Lack of emergency funds

Sometimes emergencies come up that require your immediate attention and cannot be ignored. This could be a family member getting ill, urgent bills to cover, etc. An emergency fund is money you intentionally keep aside so that, in times of emergency, you don’t need to disrupt your savings to settle these emergencies. Failure to set aside an emergency fund means that you’ll always have to break the bank whenever the need arises.

4. Spending more than you earn

Everyone wants to be wealthy on social media, but not everyone is willing to pay the price for it. If you keep spending every dime that comes to you on expenses, then you can’t build wealth, because that means you’ll be living paycheck to paycheck and end up being completely broke even before your next paycheck arrives.

To build the wealth you want, you need to be disciplined and intentionally focus on smashing your savings goals. This also means cutting down on your expenses and living within your means.

5. Not having a specific savings goal

Like the popular Bruce Lee quote,

“The successful warrior is the average man with laser-like focus.”

Having a savings goal helps you maintain focus on a target you want to hit and helps you consciously work towards it.

However, if you do not have a savings target, it becomes easy for you to spend on any half-baked random item you see on the internet. If you’re worried that you’ll still find a way to spend your savings, don’t worry! Xend Finance helps you keep your money safe from devaluation, so you can have your savings goals in dollars instead.

Here are some good money habits you can develop instead.

• Create a budget and stick to it.
• Keep an emergency fund.
• Don’t spend on unplanned items.
• Cut your expenses.
• Reduce the frequency of eating out.
• Plan your savings, no matter how little.

It's time to get started on cultivating the right money habits. Leave a comment and let us know which of these you are guilty of.