Wednesday, February 15, 2017

Bad Financial Habits You Need to Stop For A Fresh Start



bad financial habits you need to stop for a fresh start



Do you feel failed in managing your finances as your expenditure often rises to your income and you end up in unplanned debts? Well, this is a common issue of many of the modern people who usually have some bad financial habits. Therefore, if you want to start a fresh considering to improve your finances, here are few bad financial habits that you should avoid.

By avoiding these financial habits, you can grow your income and can lead a good lifestyle. On the contrary, if you fail in efficiently managing all your finances, you cannot save money even if you grow your income resources and start making more money. Your bad financial habits won't let your finances organised and this will take you experiencing a huge drop in your income at some level in coming days. So, to help you to know what those bad financial habits are that often misbalances in your finances. Here is our complete article that will tell you which bad financial habits you need to stop for a fresh start in your financial planning.

Delaying Bill Payments

A number of people have a common habit to delay their bill payments or they prefer clearing their monthly bills on the last date or often late. Well, if you also one of those people, then here you should avoid this habit of delaying payments because, when you pay your bills late, you always have to pay some extra money as a late fee. This late fee often increases the bill amount and thus, your finances get misbalance. Due to this practice, there can be a hike in the interest rate and ultimately, you face problems in managing your finances.

There can be multiple reasons that encourage you to develop a habit of late bill payments. These habits include:

If you find it difficult to keep a track on the last date of your bills, it will be one reason to make payments late. In this case, we suggest you follow a certain payment schedule and enjoy saving money that you have been wasting on paying late fees.

Do you often find yourself out of money to pay off your bills? If yes, then you should start discovering new debt relief solutions.

Don't Mix Insurance With Your Investments




Investment and insurance are two different things as both have different purposes. So, people who assume any one of these two to cater purposes of both, then you are sadly on a wrong track. The purpose of an insurance cover is to give protection to your family needs at a certain eventuality and when no other income source is there. On the contrary, an investments tends to make wealth for your good future and is made to meet some certain future requirements like post-retirement life plan, higher education, and marriage etc.

So, if you often mix insurance and investment together and start seeding some money in them expecting some certain profit, then it will surely prove a big disappointment to you later. Therefore, our advice here is to keep a difference in two of them and invest in both of them separately. try out investing in PPF, gold, equity, SIPs, real estate etc. as they will surely help you meeting your investment requirements.

Shopping Everything On The Credit

The habit of using a credit card for shopping is a common practice of modern individuals. Today, all types of people use credit card to pay off their bills. Although, this habit of using a credit card is good, yet we cannot deny the fact it has encouraged us to adopt a bad financial habit of buying everything on credit even when you can easily afford them. Buying every needful thing on credit can sometimes hurt you badly as it can increase your charges for credit so fast that won't realise what actually has happened to you. Moreover, there are studies that show that the habit of buying on credit has boomed the expenditure of individuals. So, we suggest you to stop buying things on credit and use cash when you have and save it for larger purchases.

Bad Tax Planning




Generally, people who take their tax planning so casually often face problem in their financial planning by end of a financial year. So, rather leaving your tax planning on year end, make it on time. A proper tax planning is an ongoing practice that should be done throughout a year. During this planning, you stay updated about your investments during a financial year and can also find ways to save tax. In addition, learn the value of taxation on the investments. When you will give ample time to your tax planning, you would not have to pay tax or any tax related penalty by end of the year. This is another commonly found bad financial habit in individuals that lead them to financial issues.

Not Following A Certain Plan

To learn rightly, it is vital for you to get a certain financial plan in hands and follow it firmly. Generally, people have a habit of acting impulsive and that leads them to drift from the financial plans that they have. On seeing a certain outperforming asset of others, people usually ignore their own plan and start following them. This practice often leads the individuals to redeem their investments and that means, losses and financial misbalance. So, avoid copying others and follow a certain financial plan with a full determination.

Not keeping Some Money Aside for Savings



People who don't develop a habit of investing in their saving accounts regularly, or have no money in their saving accounts, often face hard financial issues. So, when you think of a fresh start for managing your finances, give value to your savings and develop a habit of investing in your saving account. This saving will safeguard you from being caught up in the game of debt when any uncertain need of expenses arise. So, if possible, start investing some certain amount in your saving account and keep and keep that money aside for immediate needs of finances.

Conclusion

These are some bad financial habits that you should try to stop for a fresh start of your financial planning. Following these guidelines will surely help you in many ways and make your life good and more satisfactory.

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Written by Guest blogger, Jake Smith

Author Bio

Jake Smith is a professional Marketing Manager and blogger by hobby. Currently he is working with Team Intrexium, which help individuals to choose the right business platform with Fortunity Alliance Network. He has five years of experience in Forex Trading. Jake loves to share his knowledge and experience with others on the web.

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