5 Money Habits That Will Keep You Broke Forever

Achieving your financial goals depends on eliminating these habits

Victor Mong

--

Photo by Tima Miroshnichenko from Pexels

Your money habits determine your financial health and, in turn, your quality of life.

Being constantly beaten down by money worries impacts your sleep, self-esteem, and energy levels. It also leave you feeling angry, ashamed, or fearful and increases your risk of depression and anxiety.

However, most people don’t realize their bad money habits are responsible for their never-ending money worries. As CouponFund’s survey shows, 70% of people cite bad spending habits as one of their most harmful financial weaknesses.

Bad money habits prevent you from achieving your financial goals and negatively affect your life. 42% of American adults say it impacts and even worsens their mental health.

The key to financial freedom is not simply earning more money or having a large sum of money in your savings account. It’s about taking control of your finances, which starts with changing your bad money habits.

Why? Because no matter how much money comes your way, your financial goals will remain unachievable if you don’t overcome these bad habits about money.

Buying Things You Don’t Need

Buying things you don’t need is a bad money habit that makes you spend money on things without careful thought and planning.

Most people make spontaneous buying decisions based on the “Diderot Effect.” And it affects their financial health in the long term.

The Diderot effect describes a situation in which acquiring new stuff creates a spiral of consumption which leads us to acquire even more new stuff.

Imagine that you bought a new car, for example. Then you end up buying other extra stuff to go inside it, such as a tire pressure gauge, a car charger for your cell phone, a first aid kit, and even a seatbelt-cutting tool.

You keep on buying new products, upgrading to the latest version, and filling your life with possessions, and then you end up wasting money on things you didn’t need or plan for.

--

--

Victor Mong

I write about human potential, building a life you want & mastering your mind || info.victormong@gmail.com