6 Habits That Will Make You Perennially Broke – Fast Action Finance
Life is generally about the simple things that you do, or in some cases, the simple ones that you decide not to do. And when it comes to money, the truth is that you will have to pay attention to a lot of things that affect how you spend, whether you save and even when you spend. The desire to avoid being broke is always strong, but it is the will power to avoid these habits that will keep you safe financially.
Spending all you’ve earned
This is really simple. If you are spending all the money that you make, you will not have anything to fall back on when you have an unforeseen expense or an emergency. This means you will have to get into debt, which in turn means you will spend the rest of your life paying off your debts. If your lifestyle is too expensive for your paycheck, you are going to be very broke in the near future. Consider saving some of the cash you are earning today since you never know when you will have an emergency.
Living like other people
You are the only one who knows how much you can comfortably spend each month. This means that you are the only person in the best position to make a budget that will keep you in check. If however you choose to live like your friends or your neighbors, or even some other members of your family, you will not be able to make any progress in terms of your finances. Spending as much as another individual who may be earning more than you will actually get you broke as well. Here, you are better off making your own budget and sticking to it.
Not paying attention to your credit report
Your credit report is a great statement that should tell you your financial position. Well, you would probably know if you are on your way to becoming broke, but that credit report just lets you know how bad things really are before your credit cards start being rejected. If you haven’t been paying attention to these credit reports, you may not even remember how many creditors you have. It is important to also note that a credit report can give you information in the event that someone had stolen your identity. By checking that credit report regularly, you should be able to identify fraud and thus protect yourself and your assets from fraudsters.
Forgoing that insurance premium
A lot of bad things happen every day, meaning that there always is a pending risk somewhere that needs insurance. The fact that you have an insurance policy implies that you understand this. A common mistake however, can be seen when you put paying your insurance premium on hold because you have other uses for the money. The whole point of having an insurance policy is to protect you from unplanned calamities and accidents.
But if you do not pay your premiums on time, you could be caught without insurance. This is really risky and it may land you in some serious trouble. Some insurers can even refuse to pay you back if delayed paying the premium and your car got damaged. They use that delay as an excuse to avoid covering your loss. This is in the end will get you broke since you may have to borrow a lot of money in order to replace that loss. Just pay that premium on time and get a title loan for your other expenses if you must.
Using the media as your financial advisor
The media is a really great source of information, but it is not the most reliable one. Corporations tend to manipulate the opinions shared by most media organizations, meaning that if you really need advice on investing or managing your finances you will have to read wide. Just because a couple of articles are encouraging a given investment opportunity does not mean that you should jump at it. Consider your own market analysis on that investment and even consult with your own experts on the subject. The media could just as easily get you to make some very bad investments, thus costing you your life savings and leaving you really broke.
Trying to help everyone financially
A giving heart is a good thing when it comes with some moderation. If you are excessively good to everyone, you may end up being bad to yourself. You can help as many people as you want, but ensure you are in a good position first. This implies being able to meet your monthly financial obligations before you can start giving away your money. If you keep compromising and helping others, you will end up broke much faster than you can imagine.
It is the things that you take for granted that could take you down financially. This means that in order to be safe, you have to pay attention to everything that you do. This will enable you to make the required changes and thus take care of all your financial obligations including your secured loans in Mississauga among other things.