8 bad money habits 💰 Part 1.

1️⃣ Pay yourself last.
When you get your salary, you usually pay the bills, your rent, phone, subscriptions and then you save what is left over. But you should change it. You should pay yourself first. Take 10% minimum and put it into your saving account. Treat it like paying the bill.

2️⃣ Getting comfortable with bad debt.
People used to buy everything they need in debt (credit cards or other ways to borrow money). If you don’t have enough money in cash you shouldn’t buy it with any form of debt. Remember, credit card companies want you to be bad with your finances because that’s how that make money from this.

3️⃣ Not having a stockpile.
It’s about paying yourself first. If you don’t have enough savings, you should start saving up your emergency fund of 3-6 months of living expenses. It seems difficult. I recommend you to make a small goal of about 20% of your salary. When you have saved up this sum of money, make your goal bigger, for example, 30%. Small steps to bigger goal!

4️⃣ Not knowing your income & expenses.
The more money you make, the more you spend. You should count how much you make, how much you pay yourself first (about 10%), all your bills, debts. Take a notebook and record all your incomes and expenses. This way, you’ll see your weak points and decide how you can shorten your expenses. You will see your strong points, how to make more money from your income.

What bad habits have you got? How do you struggle with them? 😎

Based on: Nischa “Accountant explains:Money habits keeping you poor”.