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9 Dumb Habits You Never Realized Make You Earn Less

9 Dumb Habits You Never Realized Make You Earn Less

We live in a capitalistic society; what that means is money is up for grabs for anyone with the ingenuity and perseverance to chase it. Jumping in a wind tunnel full of Ben Franklins and grabbing as much as you can is profitable, but you can’t do that for a living. Instead you have to plan and execute specific actions to ensure you remain financially solvent. If you want to spend your retirement years swimming in a vault full of coins like Scrooge McDuck, avoid these nine dumb habits that keep you from earning money.

1. Float Like a Social Butterfly.

Social media is a useful marketing tool, and every so often you need to connect with your followers. The problem comes when you spend all your time on social media. The likelihood of links posted in social media being clicked is dependent on how many followers you have. Expect a 1/1000 ratio (one person clicking a link for every thousand that view it) on average, and don’t waste all your time marketing on social media.

One of the easiest ways to avoid wasting time on social media is to avoid reading feeds. If you use Twitter to keep up with trending topics, make a list to ensure you’re only seeing the subsection of people you follow whose updates consistently keep you in the loop on topics you follow. Also, downloading a social media aggregator such as Hootsuite or RebelMouse will allow you to merge multiple social media accounts, so you can expand the reach of your message while minimizing time spent socializing. Now get back to working on something more important!

2. It’s Called a Lunch Hour for a Reason.

It’s OK to take breaks, and we have a great lifehack discussing the importance of them. If you work for a company, it’s mandatory they give you a break; if you work on your own, you need a lunch break to give you time away from working. An hour is usually a decent enough break, although 30-minute and two-hour lunches have their uses as well. The problem comes when your lunch takes up too much of your work day.

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You don’t want to eat a heavy meal that will make you lethargic, and as for heading to the movie theater every day at lunch: you’re triple-dipping into your resources, as you’re not being paid to work, spending money with no return, and wasting time that could be productive. If you’re going to take a long lunch, you need to make up the hours on the back-end, or you’ll never get ahead financially.

3. Waiting for the Right One.

Some people will turn down job offers because they’re waiting for the right one. This does have its advantages, but you can still be doing something to make money while you’re waiting. Instead of sitting by the phone, waiting for someone to call, try pursuing odd jobs, temp work, or selling art online.

You can also pick up freelance and temp work or get paid to blog as a guest expert. The internet is filled with ways to make money online. Make use of the time you’re waiting to make money by making money, or you’ll never make any money.

4. Me Fail English? Unpossible!

Communication is important; if not for communication, human beings would never have banded together to form society, invention, and the Internet. If you don’t know how to communicate what you want, you’ll never get it. It goes much deeper than just a grasp of the mechanics of English, though.

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The world is filled with people with a variety of backgrounds, experiences, and beliefs. It’s important to understand how to craft a message specific to your audience. Different words and phrases are taken different ways by people with different perceptions. Be sure to think carefully about the methods, words, and tone used when communicating for business. Otherwise you’ll come off as either overly wonky or out in left field. Either way, people will perceive you as incapable and won’t want to hire or pay you.

5. Motivated by Money.

It’s OK to be motivated by money, but it shouldn’t be the sole motivation driving you. In order to keep up with inflation, at the very least, you need a decent and consistent raise. We have several lifehacks discussing how to ask for a raise, and it all involves proving your worth before asking for more money. If the only reason you’re working is for money, it’ll show in your work. You may think you do enough, but there is always someone doing more, and they’ll get the hefty raise you wanted.

The same thing works for promotions; if a hiring manager has to choose between someone whose focus is on making more money vs someone whose focus is helping the company get ahead, it’s clear who will receive the promotion. We discuss other ways to get a promotion in this lifehack. By working on a career path you love, you’ll reach monetary bliss well before your financially-motivated foes.

6. The Early Bird Stole Your Worm.

I have a goal to see as many sunrises and sunsets as I can in my life. It’s OK to sleep in every so often, but according to the 11 sleep habits of successful people, waking up early (and consistently doing so) is the key to success. It may not be your personal key, but it is to someone; just because you’re sleeping in doesn’t mean everyone else is. If you sleep late, know you’ll have last pick of available jobs, gigs, and opportunities to make money.

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7. You Just Practice, Baby … Practice.

One of the biggest mistakes people make is being too scared to follow their dreams. You tell yourself there’s a risk, and the timing isn’t right, so you fall into neutral and treat your life as though it’s all just practice for some future event that never happens. Instead of looking into some unknown optimistic future, focus on the here and now. Treat your life like it’s always game day, and live like you’re never going to die. When you work hard enough, the money comes sooner or later (and loving what you do makes the wait easier).

8. I’ll Procrastinate Tomorrow.

Procrastination is the single biggest reason for loss of productivity. You may not want to do something right now, but you’re not going to want to do it later either. The time between now and then will be filled with stress and wasted thoughts about something you could already have done by now. Instead of putting things off, get to work!

I realize this is easier said than done, so we’ve prepared lifehacks to help you identify the types of procrastination, techniques to manage it, and ways to make procrastination productive for those inevitable times when you actually need to put things off. Combining these tools and techniques, you’ll be able to eliminate procrastination’s negative effects on your bank account.

9. You Quit While You’re Ahead.

Stop getting comfortable every time you get a paycheck – it’s the equivalent of stopping for gas at every gas station you pass while driving across the country. Payday Friday isn’t a day to run out and waste all your money on overpriced beer and appetizers (and yes I’m aware it’s “cheaper” during happy hour).

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Bonuses aren’t free money either – if you’re lucky enough to get an extra paycheck month, pay raise, bonus, etc, don’t overspend on your celebration, and don’t think now’s the time to sit back. Whoever gave you that money did so because they love what you do, and that love can fade quickly if you rest on your laurels. If you let your financial situation determine how hard you work, you’ll always be broke, because that’s the only time you’ll ever work hard.

Making money isn’t difficult; every year Forbes releases a list of people who make the majority of the money in the world. Instead of envying these people, pick up the pace. It’s a rat race out there, but if you navigate efficiently and run the maze fast enough, you can prove your worth by earning the money you think you deserve.

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Published on November 20, 2018

The Best Ways to Save Money Even Impulsive Spenders Can Get Behind

The Best Ways to Save Money Even Impulsive Spenders Can Get Behind

The truth is, there are many “money saving guides” online, but most don’t cover the root issue for not saving.

Once I’d discovered a few key factors that allowed me to save 10k in one year, I realized why most articles couldn’t help me. The problem is that even with the right strategies you can still fail to save money. You need to have the right systems in place and the right mindset.

In this guide, I’ll cover the best ways to save money — practical yet powerful steps you can take to start saving more. It won’t be easy but with hard work, I’m confident you’ll be able to save more money–even if you’re an impulsive spender.

Why Your Past Prevents You from Saving Money

Are you constantly thinking about your financial mistakes?

If so, these thoughts are holding you back from saving.

I get it, you wish you could go back in time to avoid your financial downfalls. But dwelling over your past will only rob you from your future. Instead, reflect on your mistakes and ask yourself what lessons you can learn from them.

It wasn’t easy for me to accept that I had accumulated thousands of dollars in credit card debt. Once I did, I started heading in the right direction. Embrace your past failures and use them as an opportunity to set new financial goals.

For example, after accepting that you’re thousands of dollars in debt create a plan to be debt free in a year or two. This way when you’ll be at peace even when you get negative thoughts about your finances. Now you can focus more time on saving and less on your past financial mistakes.

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How to Effortlessly Track Your Spending

Stop manually tracking your spending.

Leverage powerful analytic tools such as Personal Capital and these money management apps to do the work for you. This tool has worked for me and has kept me motivated to why I’m saving in the first place. Once you login to your Personal Capital dashboard, you’re able to view your net worth.

When I’d first signed up with Personal Capital, I had a negative net worth, but this motivated me to save more. With this tool, you can also view your spending patterns, expenses, and how much money you’re saving.

Use your net worth as your north star to saving more. Whenever you experience financial setbacks, view how far you’ve come along. Saving money is only half the battle, being consistent is the other half.

The Truth on Why You Keep Failing

Saving money isn’t sexy. If it was, wouldn’t everyone be doing it?

Some people are natural savers, but most are impulsive spenders. Instead of denying that you’re an impulsive spender, embrace it.

Don’t try to save 60 to 70% of your income if this means you’ll live a miserable life. Saving money isn’t a race but a marathon. You’re saving for retirement and for large purchases.

If you’re currently having a hard time saving, start spending more money on nice things. This may sound counterintuitive but hear me out. Wouldn’t it be better to save $200 each month for 12 months instead of $500 for 3 months?

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Most people run into trouble because they create budgets that set them up for failure. This system won’t work for those who are frugal, but chances are they don’t need help saving. This system is for those who can’t save money and need to be rewarded for their hard work.

Only because you’re buying nice things doesn’t mean that you’ll save less. Here are some rules you should have in place:

  1. Save more than 50% of your available money (after expenses)
  2. Only buy nice things after saving
  3. Automate your savings with automatic bank transfers

These are the same rules that helped me save thousands each year while buying the latest iPhone. Focus only on items that are important to you. Remember, you can afford anything but not everything.

How to Foolproof Yourself out of Debt

Personal finance is a game. On one end, you’re earning money; and on the to other, you’re saving. But what ends up counting in the end isn’t how much you earn but how much you save. Research shows that about 60% of Americans spend more than they save.[1]

So how can you separate yourself from the 60%?

By not accumulating more debt. This way you’ll have more money to save and avoid having more financial obligations. A great way to stop accumulating debt is using cash to pay for all your transactions.

This will be challenging, depending on how reliant you are with your credit card, but it’s worth the effort. Not only will you stop accruing debt, but you’ll also be more conscious with what you buy.

For example, you’ll think twice about purchasing a new $200 headphone despite having the cash to buy them. According to a poll conducted by The CreditCards.com, 5 out of 6 Americans are impulsive spenders.[2]

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Telling yourself that you’ll have the discipline to not buy things won’t cut it. This is equal to having junk food in your fridge while trying to eat healthy–it’s only a matter of time before you slip. By using cash to make your purchases, you’ll spend less and save more.

A Proven Formula to Skyrocket Your Savings

Having proven systems in place to help you save more is important, but they’re not the best way to save money.

You can search for dozens of ways to save money, but there’ll always be a limit. Instead of spending the majority of your effort saving, look for ways to increase your income. The truth is that once you have the right systems in place, saving is easy.

What’s challenging is earning more money. There are many routes you can take to achieve this. For example, you can work long and hard at your current job to earn a raise. But there’s one problem–you’re depending on someone else to give you a raise.

Your company will have to have the budget, and you’ll have to know how to toot your own horn to get this raise. This isn’t to say that earning a raise is impossible, but things are better when you’re in control right? That’s why building a side-hustle is the best way to increase your income.

Think of your side-hustle as a part-time job doing something you enjoy. You can sell items on eBay for a profit, or design websites for small businesses. Building a side-hustle will be on the hardest things you’ll do, be too stubborn to quit.

During the early stages, you won’t be making money and that’s okay. Since you already have a source of income, you won’t be dependent on your side-hustle to pay for your expenses. Depending on how much time you invest in your side-hustle, it can one day replace your current income.

Whatever route you take, focus more on earning and save as much as possible. You have more control than you give yourself credit for.

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Transform Yourself into a Saving Money Machine

Saving money isn’t complicated but it’s one of the hardest things you’ll do.

By learning from your mistakes and rewarding yourself after saving you’ll save more. What would you do with an extra $200 or $500 each month? To some, this is life-changing money that can improve the quality of their lives.

The truth is saving money is an art. Save too much and you’ll quit, but save too little and you’ll pay for the consequences in the future. Saving money takes effort and having the right systems in place.

Imagine if you’d started saving an extra $100 this next month? Or, saved $20K in one year? Although it’s hard to imagine, this can be your reality if you follow the principles covered in this guide.

Take a moment to brainstorm which goals you’d be able to reach if you had extra money each month. Use these goals as motivation to help you stay on track on your journey to saving more. If I was able to save thousands of dollars with little guidance, imagine what you’ll be able to do.

What are you waiting for? Go and start saving money, the sky is your limit.

Featured photo credit: rawpixel via unsplash.com

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