Financial Freedom May Be As Easy As Acknowledging Your Bad Habits
How many times have you blown a small amount of money and said to yourself, “Oh well, it was only a little money.” In our mind that one-time loss isn’t a big deal because that’s what it was, a one-time thing. False. Our financial decisions are all about our habits, very rarely do we do something with our money only one time. If you’re a person that goes out to eat a lot, it is very easy for you to write off that cost as something you need. If you put away a percentage of your paycheck each month in savings, it will be a lot easier for you to continue that habit.
One of the most important aspects of personal finance is the mental aspect, most of us know what we should do with our money, we just choose not to do it. It’s not easy. Just like dieting is hard, strong financial habits are hard as well. So how do we start to change our habits for the better?
First off, acknowledging some of our habits as unhealthy is a start. Try This. Keep track of how you spend money over the course of few days. After those few days go back through your log and decide what purchases are necessary purchases and what purchases are not needed and based more on wants. I guarantee that you will recognize some places where you money is disappearing to and seeing no return for it. Perhaps you can find some things you need but you are overpaying for as well.
Once you’ve recognized what needs to change, you have to tighten down on it. If you spend too much money going out to eat, make a plan to replace some of those meals with a meal from home. If you like to muse vending machines and convenient store snacks, make it a point to buy snacks at the grocery store instead. And if you involve yourself in a habit like smoking, just calculating the amount of money alone you spend on it may make you want to quit. Doing the math on what breaking your bad habits may end up saving you down the road can be a great motivation.
For the most part, we all have bad habits when it comes to money. The only problem is, most of us neglect the fact that we do have a bad habit. Simple awareness can help you save a few more dollars down the road and lead to a happier lifestyle. So I challenge you, track your spending for the next few days and see what you’re losing money on.