It’s that time of the year again.
You also have the surge of people flooding their local gyms for a month because this is the 7th time in a row that they have vowed, THIS IS THE YEAR that they will lose weight and become more fit and healthy. You know, “new year new me” type of sh*t – well until all that new year crap goes out of the window.
It’s cold (well, here in London anyway), Christmas is gone and all you have are pictures to remind you of what a great festive season it was.
Yes, January Blues.
The longest month of all months as many of us are in ultimate shock when we open our bank accounts and only have £12.80 to our name to last us until pay day.
WHAT THE HECK DID I SPEND MY MONEY ON?!?
Oh yeah, I remember! Christmas just came.
But what if I told you that it is our bad habits that are making us broke. Would you be open to changing them habits? Well let’s see – you did say new year, new you right?
Top 8 habits that are making us broke.
#1 – spending more than you earn
When you spend more than you earn you will always find yourself depending on one thing to get you out of that mess….CREDIT!
And that will ultimately create a bigger mess for you because you have to make sure you pay back what ever you borrowed whilst also spending more, which will then mean that you have no choice but to rely on credit.
A hopeless cycle!
There are a few things you can do to curb this disastrous habit.
1 – create a tight budget which doesn’t include borrowing money from credit cards or your local money lender
2 – focus on earning more money, whether it be finding another higher paying job, negotiating a pay rise or having a side hustle that generates extra income
(download my FREE budget template here, to help you get your finances on track)
#2 – not creating an emergency fund
In life, there are things that pop out of nowhere, some of these unexpected events may cause happiness, sadness, or might just be plain ass expensive.
Dave Ramsey constantly talks about the importance of having an emergency fund – just in case something unexpectedly pops up and you can financially handle it. That way you won’t find yourself in situations that you know you shouldn’t be in which will be bad for your pockets in the long run.
#3 – not paying yourself first
Read any book on financial management and the key is always to ‘PAY YOURSELF FIRST’.
When you make it a priority to pay yourself (no matter how much you earn) you can then work on the other priorities you need to pay for, i.e bills, food shopping, expenses, etc.
The mistake many of us do is when we get money, the first thing we do is spend it and then wonder why we have nothing saved.
#4 – you don’t track your spending
This one honestly caught up with me over the Christmas period. By not tracking your spending you are ultimately not having control over your finances.
I found myself sending more than I should be, just because I failed to do something extremely important.
TRACK MY SPENDING!
When you do track your money each time you spend or before you spend, you can then see how much money you have left and the things you need to priorities on first when spending money.
#5 – being broke by association
Or another term people like to call it is, Keeping up with the Joneses, your friends or your peers shall I say. Spending all your wages on one designer item because you want to look fly for the gram or show your friends on snapchat that you have a new designer item. But, did you tell them that your brand-new purchase made you broke for the month. Of course not!
I am not saying ‘do not buy designer items’, but what I am saying I that if or when you choose to make that purchase make sure it financially makes sense at this moment in time.
If not, then there is no harm in waiting until you have your finances in order. Please people, do not live above your means to try and fit in!
Wait until you have some sort of savings, but don’t go broke for material items so you can keep up with your friends.
#6 – never making it a priority to learn how money can work for you
One of my goals was educating myself and seeking education on money. I know I want to be financially free one day, but in order to become financially free I need to become financially literate.
This led me to reading more books on finances, going to seminars, listening to audio and so on.
By taking this step, you will learn so much about the different ways you can make money work for you.
#7 – no financial goals
Would you like to save £500 this year…. £1,000, £5,000. Frig it £10,000.
What is the amount or the figure you want to see in your account by the end of the month or the end of the year?
Having clear financial goals, will make it a lot easier to save. When you don’t have financial goals, people may be easily swayed to spend their money on things that don’t matter.
By making weekly, monthly, or yearly financial goals that you’re constantly reviewing will motivate you to achieve them.
#8 – you have a shitload of monthly subscriptions that you don’t use
Are you currently paying for a monthly gym membership, but never find yourself in the gym for some reason? Yeah, I am sure many can relate!
Take a few minutes to go through your bank statement, to figure out what subscriptions you really need.
C’mon do you really need Spotify and Apple music at the same time.
Cutting back on your monthly subscriptions will be worth it, because paying for a bunch of subscriptions each month sadly do add up without you even realising.
If you haven’t already, I have created a FREE Budget Cheat Sheet JUST FOR YOU, with the hopes that it will help you get your finances back in order.
Click here to download it now so you can get started!