Five spending habits you need to break now

August 1, 2017

We’re all guilty of buying things we don’t need. I know I’m certainly not 100% in control of my spending most of the time! Especially when it comes to designer bags and cute shoes. Throughout the years though, I’ve made enough mistakes when it comes to my finances to have finally learnt some valuable money lessons. Financials skills are essential to navigating life and it’s a shame schools don’t teach children at a young age how to handle money.  I may be personally still learning, but I’m proud to say I’ve recently turned a page and I’m determined to sort out my shit. For good.

Here are some money lessons I strongly believe we should all abide by, and five habits you’re capable of breaking now:

Not saving in advance for big purchases

It’s never a good idea to make a big purchase on a whim. Say you have your eyes set on that brand new Celine purse. Put aside a bit of money each month until you have enough saved up for it. Don’t put it on your credit card and say to yourself “oh, I’ll eventually pay it off!”  Damn interest accumulates and before you know it, you’re drowning in credit card bills. Delayed gratification is generally crucial in many aspects of life, not just large purchases. Successful people know how to work hard at something and reap the benefit in the end.

Not planning for your retirement

Compound interest on your savings is a concept not many people understand. Basically you earn interest on your savings but as well as on past interest. Hence it’s worthwhile to start saving ASAP! I’m ashamed to say I’m already in my 30s and haven’t put aside a single dime for my retirement. This year is THE year I’m making a change and starting to plan for my future. I hope I don’t bite my tongue in December….

Not having money aside for emergencies

Unfortunately, our world has changed, and you never know when you might lose your job, or God forbid, get sick. As a good rule of thumb, it’s always wise to have 3 months worth of salary put aside for a rainy day. Some stuff like root canals only happen once or twice per year, so it’s good to have some cash on hand just in case.

Relying on a man for your spending

I’m a strong believer in any woman being able to stand on her two feet without the help of a man. Of course, I do understand that every woman’s situation varies and I’m nobody to point fingers. But even having minimal income gives you some sense of independence and will ultimately make any man respect you a bit more, in my humble opinion. There’s no such thing as Prince Charming and no man will come charging on a white horse to get you out of your debt hole.

Not treating yourself once in a while

Sure, you have to be smart about your spending. But once in a while (keyword: ‘once’), it’s okay to splurge on that pair of shoes that’s on sale. I just did last weekend! 🙂

“It’s not your salary that makes you rich, it’s your spending habits.” – Charles A. Jaffe

 

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