Ways To Get Rid Of Your Poor Financial Habits

It’s common for us to enter a financial slump every now and then due to emergency situations and unexpected expenses. However, it’s sad to learn that many people get in such condition due to poor financial planning, reckless spending and bad debt management. What’s worse is that, for some, this kind of practice goes on until they find themselves in a state where they have to lose their properties just to settle their obligations and get back on track.

Managing your finances requires both practicality and discipline. If you find it hard to control yourself, or keep up with your financial plans, try the following suggestions:

Make a monthly and weekly budget plan. It’s the most practical, and most taken for granted way of managing money. Making projections of your earnings versus your expenses gives you a better view of your current financial situation and gives you the chance to find ways to make ends meet should you need to. It also allows you to set payment schedules and savings target so that you can make sure that everything is taken care of.

Setup an auto-debit system on your bank account. Many of us tend to neglect to pay our bills or utilities because it requires extra effort to do so, or we feel like procrastinating. Don’t let your bills pile up and incur additional late fees by setting an auto-debit system on your bank account. Just make sure you have enough funds to cover for everything.

Don’t carry your credit card when shopping. Allot a definite budget on the things that you’re supposed to buy on that specific trip to the mall, and carry just enough cash to cover for everything. This will help you control yourself from buying on impulse and will force you to stick to your original shopping plan.

Automatically set aside 5-10% of your income for emergencies. You’ll never know when something happens or when you’re going to need money, so it’s better to keep something in the bank for such cases. Do this religiously and pay your bank account like your utility bills. Keep this emergency savings account different from your regular savings account, so that you won’t have any excuse to touch the funds.

Treat yourself every now and then. Schedule a day when you spend a portion of your income for yourself and your family. Put a specific budget for such, just so you won’t feel that you are depriving yourself and your family of occasional leisure and prevent impulsive spending. Consider this a pat on the back for succeeding to be frugal for that period of time.

Amy C. Fountain is a businesswoman who loves sharing her ideas about money management through article writing.  She is also an interior designer who assists homeowners in creating a beautiful place to live in by using simple home decors like Candle Lanterns and Bamboo Water Fountains.

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