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10 Habits That You Don’t Realize Are Costing You

10 Habits That You Don’t Realize Are Costing You
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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?

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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 July 20, 2021

Financial Freedom is Not a Fantasy: 9 Secrets to Get You There

Financial Freedom is Not a Fantasy: 9 Secrets to Get You There
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Have you ever considered your life now, and how it would be if you had more time to spend with your family and less worries about money?

Nowadays, financial stress is one of the most troublesome weights in life. If you’ve ever encountered financial stress, you know the difficulty of not having enough income to pay your obligations or bills.

Many people say that money is not the ultimate goal of life. While that’s true, money certainly plays a very significant role. The meaning of financial freedom changes with the different phases of our life, but ultimately, it is something that many people strive for.

In this article, we’ll explain how to capture that financial freedom you’ve been looking for. Read on to learn the secrets to financial freedom.

Break Free of Your Finances

Financial freedom is about having a constant flow of cash from your assets to cover all your regular needs.

When you are not worried about your income, or living paycheck to paycheck, you gain a great sense of freedom. It’s the freedom to be obtain and do what you truly need to make your way through everyday life.

Gaining financial freedom, though, is a process of growth, making small improvements and gaining emotional strength.

Though it seems hard to believe, it is really very simple to get financial freedom.

To do so, you simply need to make sure that your assets exceed your liabilities. In other words, you’ll need to find the sweet-spot where your residuals meet or surpass your expenses. This is something that you can achieve with the proper plan.

While not every person will accomplish financial freedom, the potential for anyone to do so is certainly there. Anyone can achieve this success, regardless of their income level.

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Outlined below are 9 secrets that will help you in your goals of achieving financial freedom.

1. Stop Unnecessary Spending

We often spend money inwardly, instead of objectively.

For example, you may spend when you’re anxious, depressed, restless, exhausted, from fear of missing out, or to please others. This is a very unhealthy way to handle your finances.

To stop this habitual spending, log down all your spending over the course of a month.

Just as some people keep a food diary, keep an expense diary. Remember not to just write down how much and what you spent the money on, also include the circumstances of why you spent the money. Was it an impulse buy at the checkout line or was it something you planned to purchase?

This increased self-awareness could enable you to avoid triggering situations in the future when you are considering an impulse buy.

2. Plan a Monthly Budget

This is a great opportunity to get serious.

Take a seat with your spouse or partner and make a monthly budget based on your income, not your expenses. You are never again going to spend more cash then you have on hand.

Overspending is the thing that led you to more financial obligations. Make sure you decide every month what is coming in and what will be going out and stick to that budget… no matter what.

3. Cut-up Credit Cards

Perhaps you are the type of person who always pays your credit card balance in full before the end of your billing cycle, and enjoys the reward points you gain. If this is the case, then you’re already way ahead of the game.

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If not, you may want to consider ridding your life of the burden that credit cards bring.

Many cards have strategies set up so that if you make a certain number of late payments, they will raise your interest rate much higher. This can really add up in the long run and you won’t be doing your financial situation any favors. If you’re prone to late payments or have a large balance due on your cards, cut them up!

Without proper self control on credit card spending and payments, you are basically throwing your money away. To ensure that you have better control over your spending, use only cash or debit for all future purchases (and don’t forget to pay at least your minimum payment on your cut-up cards each month!).

4. Increase Savings

There is no doubt that for a comfortable retirement you must accumulate satisfactory savings throughout your working life.

It’s good practice to save up to 15% of your income.

Start with your workplace 401(k), if you have one. If not, a Roth IRA (if you are eligible) or a traditional IRA (if you are not eligible for the Roth) are the next logical steps.

Increase in longevity means you might be able to look forward to 25 to 30 years in retirement, or possibly even significantly more. Investing now in good retirement plans will ensure that you have a guaranteed a stable monthly income when the time comes to stop working. [1]

5. Invest Wisely

Consider investing in funds.

Specifically, you will gain higher returns if you invest in different types of mutual funds such as Debt funds, Equity funds and Hybrid funds with a proper balance, although it absolutely relies on your personal preferences and sense of risk taking.

To get the most of these benefits, make sure you are investing in a variety of assets. Another resource of investing in mutual funds is SIP (Systematic Investment Plan) where you invest some money every month in funds. SIP works by averaging the per unit price of the stock.

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Mutual fund investors are aware of the benefits of an SIP (Systematic Investment Plan). For one, it is the most secure way to invest in equity mutual plans so that wealth is created over a long period of time. This plan also helps you to gain a better sense of financial discipline, which will come in handy in all your financial endeavors.

6. Invest in Gold

There isn’t really a better way to invest in gold than to have the physical gold itself in your possession.

You can purchase gold coins and bars from mints as well as from coin dealers and other private sellers.

Another way to invest in gold is through ETFs (Exchange Traded Funds).

These are is similar to mutual funds but they are exclusively investments of gold. ETFs are great because they offer more liquidity; the ETF owns the actual physical gold, stores it, and retains the value of the shares. These shares can then be bought and sold in the stock market, and one big benefit is that the transaction costs of gold ETFs are much lower than the that of physical gold.

With its consistently-increasing demand, investment in gold can be very wise long-term investment to make.

7. Stash Emergency Funds

Whether it’s a cash gift or a work bonus, always try to save any extra money that comes your way rather than making unneeded purchases.

If you get paid every other week, you’ll get an “extra” paycheck (three rather than the usual two) twice a year. Either save those paychecks towards your emergency funds or utilize the money to pay down other obligations, such as loans, credit cards or other debts.

Make it hard to get your cash.

Put your savings in an alternate bank, maybe an online bank that forces you to delay for several business days before transferred money hits your regular bank account.

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8. Find Fabulous Mentors

Find a mentor, such as a friend or family member, who has exceptional control over their finances and pay attention to everything they do.

If you do not have any friends or family that are enjoying financial freedom, then find a mentor online! There are numerous blogs and guru websites featuring the advice of many people who have reached financial freedom, and they exist primarily to let you in on how to achieve it for yourself.

There are also plentiful forums available that share tips and tricks on how to best achieve financial freedom. Read as much as you can and start changing your habits for the better.

9. Be Extra Patient

Patience is the key of financial success.

Being patient can be quite tough, especially when you’re struggling with your finances, but having faith is worth it. You’ll continuously be on the right track if you are taking the proper steps above.

So don’t be discouraged, even if you are only saving a few dollars a month; it all adds up. Within just a few years you’ll look back proudly at your accomplishments and be glad that you had the patience to get there.

Financial Freedom for All

Anyone can achieve financial freedom, regardless of their financial circumstance.

Use the tips provided above to get yourself on the track to financial freedom and toss your monetary concerns out the window. If you wish to achieve a life with financial freedom for yourself and your family then you must adopt a disciplined approach towards your finances.

Following the simple secrets above is a great start to making your money work for you, so you can work less and live more!

Featured photo credit: rawpixel via unsplash.com

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Reference

[1] Hartford Gold Group: IRA Retirement Accounts

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