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10 Habits That You Don’t Realize Are Costing You

10 Habits That You Don’t Realize Are Costing You

You may not realize it, but some things you do habitually can make you lose money. Let’s see what those costing habits are and how we can reverse them.

1. You are a chronic complainer

If you always see the bad side, then you might not see the opportunities around you. When you miss opportunities, you inevitably lose money.

For example, if you are too busy complaining to yourself about how your co-worker sucks, you might not think that you would be a great fit for that new project that just came out. Yes, the one that would boost your resume and possibly lead to a promotion. Opportunity lost.

2. You don’t exercise

Here’s a weird benefit of exercise: people who exercise at least three times a week make 9% more than their non-exerciser coworkers.

Not already exercising? Keep your chin up. A habit-making program like Exercise Bliss could start forming you into a regular exerciser starting next Monday.

3. You think you would never spend this much money, and then spend it

My friend and NYT best-selling author Ramit Sethi likes making fun of people who think they will never spend, e.g. $30,000 on a wedding. But when time comes, and it’s their turn to get married, they spend it.

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I’m not criticizing spending money on your wedding here. I’m just saying that had you accounted for the “having a big wedding” scenario, you might have saved more in the past, and hence not need to get into credit card debt.

4. You don’t negotiate

From negotiating the price of your car, to negotiating your salary, you have a lot of potential to save thousands of dollars. Yet beware, negotiating is not something most people are skilled at. I recommend buying books and then spending 1000x more time actually practicing the books’ teachings with a friend.

That’s how you’ll walk into a negotiation with confidence and ready to tackle anything that comes your way.

5. You think short-term vs. long-term

We often don’t really take into account the effect of our actions in the long run. For example, you not negotiating a $5k increase in salary does not just cost you $5k this yea, but maybe next year as well.

In your next job interview, the employer will try to pay you according to your past salary. Your negotiating position will start from $5k less than what it could have.

And that just compounds as years go by. Thousands of dollars lost, because of an innocent, missed $5k negotiation.

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6. You think “I can’t do it” instead of “How can I do it?”

You can make more money at your current job. You can negotiate more, or improve your skills and then ask for a raise.

Or, you could make more money on the side. Or, you can start your own business.

The options are infinite. The more you’re stuck on “can’t”, the more you’ll be losing money that you could have earned had you not had this bad “can’t” habit.

Start with Appsumo’s Make your first dollar, and you might be surprised with the results.

7. You avoid saying “no”

Your sister asks you for money. She never gives the money back, but you still just can’t say “no.”

You keep lending money, or buying dinner for your friends, just because saying “no” is easier than paying. I’m not saying that “no” should come easy. But I am proposing to be conscious about why you do what you do.

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Regardless of whether you are a guy or a girl, I definitely recommend the book Lucky Bitch by Denise Thomas. Those unconscious patterns will rise to the surface right away!

8. You confuse your account balance with your self-worth

The balance on your account is just a number. Yet, we tend to be emotional with that number. When this balance is not up to our standards, we may feel shame and self-pity.

That’s exactly what overweight–or even thin–people feel when on the scale. The number on the scale feels like it describes their self-worth, when it doesn’t!

The result of this confusion is that you might be afraid to even open up those new bills. Or, you might avoid dealing with your debt because it’s just way too scary to do so.

But the good news is that it’s just a number–it doesn’t have anything to do with who you are.

9. You don’t take your emotions into account when paying off debt

Not knowing how to pay off your debt can hold you back and make you pay it off more slowly. Man vs. Debt advises: start with the debt that you most want to get rid of.

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Not the debt that costs you the most, the debt that you really want to cross of your list. Why? Because your emotions matter. Because if paying off your debt doesn’t give a feeling of relief, then you’re just not going to be as good at it.

10. You buy stuff without understanding why

In Money: A Love Story author Kate Northrup urges us to understand what made us make each purchase. First, we look at our credit card statement. Were our purchases good ones, or are there any purchases that we would have been better off without?

Once we complete this step, we move on to step two. How did we feel when we made each purchase?

If you actually do this step, you might find out that the purchases you made while feeling bad, needy, or lacking, are not the ones you are proud of.

Next time you are about to buy something that you MUST have, ask yourself: “Why do you really want this?” Are you, e.g., buying a coat because you actually need it, or are you buying a coat in the hope that your new friends will like you better?

Now it’s your turn to let me know: Do you have any of the above costing habits? If yes, what will you do to reduce it, or even better, get rid of it?

More by this author

Maria Brilaki

Maria helps people create habits that stick not just for a month or two but for years and decades.

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Last Updated on January 21, 2020

How to Develop a Millionaire Mindset in 6 Simple Steps

How to Develop a Millionaire Mindset in 6 Simple Steps

We all like to dream about being financially wealthy. For most people though, it remains a dream and nothing more. Why is that?

It’s because most people don’t set their mind to achieving that goal. They might not be happy in their current situation but they’re comfortable – and comfort is one of the biggest enemies of growth.

How do you go about developing that millionaire mindset? By following these simple steps:

1. Focus On What You Want – And Take It!

So many people are too timid to admit they want something and go for it. When there is something that you want to accomplish don’t think “I could never actually do that”, think “I could do that and I WILL do that”.

Millionaires play to win, not to avoid defeat.

This doesn’t mean to have to become a selfish jerk. What it means is becoming more assertive and honest with yourself. You don’t have to grab off other people. There is a big pot of unclaimed gold in the middle of the table — why shouldn’t you be the one to claim it? You deserve it!

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2. Become Goal-Orientated

It’s almost impossible to achieve anything if you don’t set firm goals. Only lottery winners become millionaires overnight. By setting yourself attainable goals, you will get there eventually. Don’t try to get rich quickly — get rich slowly.

Let’s take the idea of making your first million dollars and expand on what kind of goals you might set to get there. Let’s also say you’re starting at a break-even position – you’re making enough to get by with a few luxuries, but nothing more.

Your goal for the first year can be having $10,000 in the bank within a year. It won’t be easy but it is doable. Next, you need to figure out the steps you need to take to achieve that goal.

Always look at ways to make growth before cutbacks. With that in mind, you might want to see if you can negotiate a pay rise with your boss, or if there’s another job out there that will pay better. You might be comfortable in your old job but remember, comfort stunts growth.

You may also have other skills outside of your workplace that you can monetize to boost your bank balance. Maybe you can design websites for people, at a fee of course, or make alterations to clothes.

If this is still not enough to make the money you need to save $10,000 in a year, then it’s time to look at cutbacks. Do you have a bunch of old junk that someone else might love? Sell it! Do you really need to spend $10 on your lunch everyday when you could make your own for a fraction of the cost?

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If you are to become a millionaire, you need to start accumulating money.

Here’re some tips to help you: How to Become Goal Oriented and Achieve More in Life

3. Don’t Spend Your Money – Invest It

The reason you need to accumulate money is for step three. Millionaires tend to be frugal people, and that’s because they know the true value of money is in investing. Being your own boss goes hand-in-hand with becoming a millionaire. You’ll want to quit your regular job at some point.

Stop working for your money and make your money work for you.

Rather than buying yourself a new iPad, that $500 could be used to invest in the stock market. Find the right shares (more on that later), and that money could easily double within a year.

There’s not just the stock market — there’s also property, and your own education.

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4. Never Stop Learning

The best thing you can invest in is yourself.

Once most people leave the education system, they think their learning days are over. Well theirs might be, but yours shouldn’t be. Successful people continually learn and adapt.

Billionaire Warren Buffet estimates that he read at least 100 books on investing before he turned twenty. Most people never read another book after they’ve left school. Who would you rather be?

Learn everything you can about how economics works, how the stocks markets work, how they trend.

Learn new skills. If you have an interest in it, learn everything you can about it. You’d be surprised at how often, seemingly useless skills, can become extremely useful in the right situation.

Start developing the habit of learning continuously: How to Create a Habit of Continuous Learning for a Better You

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5. Think Big

While I advise to start off with small goals, you absolutely should have a big goal in mind. If you have a business idea, then that is your ultimate goal – to start that business and make a success of it. If you want to invest your way to millions of dollars and do little work other than research, then that is your big goal.

There is no shame in not achieving a big goal. If you run a business and aim to make $1 million profit in a year and “only” make $200,000, then you’re still significantly ahead of most people.

Aim for the stars, if you fail you’ll still be over the moon.

6. Enjoy the Attention

To be successful, you have to be willing to promote yourself and enjoy the attention to a certain extent. Now the attention doesn’t need to be on yourself, it could be on your brand, but attention definitely attracts money.

Never be embarrassed to get your name out there. That means finding a spotlight and being brave enough to step right up underneath it.

If you run a business, try contacting the local papers. You’d be surprised at how amenable they often are to running a story about you and your business, and it’s all free publicity.

Above all, remember: You control your own destiny. Push hard enough for anything and you’ll get it.

More About Thinking Smart

Featured photo credit: Austin Distel via unsplash.com

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