Tuesday, October 8, 2013

3 Bad Financial Habits And Ways To Fixing It

3 Bad Financial Habits And Ways To Fixing It

I'm sure most people want to achieve financial freedom. The science of how to manage personal finances well is shared by many financial institutions and financial experts, but until now have not been able to reach by the most people. They've been saving in various expenditure items but still have not been able to achieve the dream of financial freedom.

Why did it happen? Our current financial condition related to our habits in managing personal finances. Formed by human habits every time does. In financial terms, the success and failure of a person in achieving their financial goals largely determined how the person is in the habit of managing personal finances.

Here I want to share 3 bad financial habits and how to fix it:

1. Piling up credit card debt
Credit card actually is a tool for us to simplify the payment process. With the easy to obtain credit cards, many people began to accustom themself to pay for everything with a credit card, is a good habit only when the credit card bills are always paid in full each due date. But when it is paid every due date only the minimum payment, this is a habit that will bury a person in debt is increasingly piling up credit card plus accrued interest continues to grow many times over.

The only way to solve this problem is to STOP using credit cards, you get used to conduct financial transactions with cash, then use all the extra money that you can get each month to pay off the credit card debt. You will make progress in achieving financial freedom when you stop using credit cards to purchase goods / services beyond your capabilities.

2. Spending money income received exceeds
Habit of spending money than the income received is one of the bad habits that hinder a person to achieve financial freedom. This habit is the root cause of a lot of people have debt piling up. And this habit for the people in different income levels, the income mediocre or whose income is more than enough. Everyone should start learning to have enough satisfaction.

This satisfied feeling is a pretty good habit that will help to correct bad habits than to spend money income received. I'm sure if we can distinguish which one needs and which will, most of us already have enough income to meet basic needs to survive. When our income every month is still not enough to meet our basic needs, take some extra time to earn extra income to suffice the basic needs.

3. Trying to compete and equate yourself with others
Frequently you see a neighbor driving a brand new car and past the front of your house. Then you start thinking, "Well, he/she able just buy a new car, why can't I?". Encouraged by such thoughts, you decide to go to an exhibition or sales outlet car then buy the latest car using a car loan facility. Whereas, in fact it's not necessarily your neighbors can afford to buy a new car. So, you and he/she are both buying a car that has not been able to buy just for to compete against each other.

Starting from cars, mobile phones, watches and other desires, you will be mounting debt. If the debt is not resolved it will encourage you fall into a deep abyss of debt. You have to understand that material wealth can not bring the happiness, have enough feeling for everything and satisfy your desire when you've only really afford. - 3 Bad Financial Habits And Ways To Fixing It

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