I am sure that if there is anything we all agree on it would be the fact that our savings and finances, in general, took a big blow last year, so this year we have to step up our game to save more, we will have to dump some bad financial habits. All these little habits that pinch at our savings leaving us with less and less every time will have to go. Now the first step of rectifying any problem is identifying the said problem so let’s explore some of these bad habits.
Bad finance habits to avoid in 2023
Impulse shopping is a very unwise thing to do when trying to boost your finances, it would not only pinch, but gulp down on your income. This is usually if not always outside of your budget and would only lead to financial disaster. So any purchase should always be planned and within your budget.
lack of budget leaves a very open space for mindless, unplanned, and reckless spending. A budget that is made and followed will guide you to find a balance between your income and expected expenditure that still leaves you with extra to save.
Not having insurance
Insurance such as vehicle insurance, house insurance, health insurance, fire insurance, and the rest is also very important when trying to cut down on expenses. This insurance [depending on your insurance package] will either cut down on the payments to make or erase it. It is important that in 2023 you ensure you get the necessary insurance if you didn’t have any in 2022.
Spending more than you can afford
Oftentimes we are pushed into buying a thing or more that just so happens to be beyond our income because of societal or peer pressure or simply to satisfy ourselves. This doesn’t mean that it is more than what we earn but simply that purchasing such things would leave you unable to cater to important or necessary needs. You might have to then cut into your savings or go borrowing to see to the necessities. Such habits should be cut. As the saying goes “cut your coat according to your size”.
Not funding your emergency funds
We need to create an emergency account and fund it regularly for any situation that may come up unexpectedly. These unforeseen circumstances can cut very deep into our finances and distort our budget if we do not plan for them ahead of time. It is wise to plan for any and every possible thing. As they say “if you fail to plan then you have planned to fail”.
Why would you not want to invest your money? even when you are aware that investing your money is a way of making your money work for you, rather than sitting idly in a non-interest paying savings account? Investing can be one of the best decisions you can make for yourself, but getting started can be tough. Simplify the process by picking a popular investment strategy that can work for you and then stick with it. If the entire investing concept seems complicated for you, you can seek the help of an investment company in Nigeria, or internationally.
Many such habits have been inculcated into our daily lives. We sometimes don’t even realize the harm we are causing. And, when this is abandoned it would be very beneficial to our finances. We should all make conscious efforts to put an end to these habits and actions that only leave us deep in debt or leave us with an empty bank account, anxiously waiting for the next miracle. What better time to start anew and wipe out bad habits than a fresh new year? We can help you manage your finances.
Also read: Financial Hacks For New Entrepreneurs