Which destructive money management habit can you change to a helpful one?
We all have money management habits that are damaging. Here are just a few that can be changed over time to help you grow your money, get out of debt, and sleep better.
1. “I want this so I will use my credit card and pay later.”
New Habit: Set goals with a dollar amount attached then divide by the amount you can save each month and highlight the potential date when “your dream comes true”.
2. Using a trading app.
New Habit: Take time to understand your Investment Risk Tolerance. While the trading apps appear interesting, new and fun they can lead people into really high risk investments and a gambling-type addiction. Learn if you sleep better as a Conservative, Moderate or High-Risk investor.
3. "I need this new…”
New Habit: Be curious about why you need this purchase. What need are you really filling i.e. connection, being taken care of, self-assurance, revenge, etc.?
4. Listening to your inner “mean girl” or “mean guy”.
New Habit: Logically some purchases are healthy ways to care for you and your important others, while, other purchases satisfy the desire to escape. Set boundaries with your budget and be free from guilt.
5. Living in denial.
New Habit: Track your spending on your phone, in Excel, in your calendar, with an app or pen & paper. You can’t deny that black & white data!
6. Managing money alone.
New Habit: Work with a financial coach or a financial planner to stay on track.