How to Attain Financial Wellness? 6 Bad Habits to Avoid Now

Nearly all modern-day individuals have creature comforts that they indulge in regularly. While a new pair of shoes or morning mocha frappe seems harmless, always consider their effect on bottom line.

Despite exerting utmost effort, a dollar here and there adds up quite quickly, contributing to debt. Now I have chalked down few bad habits, which when avoided can provide relief from monetary obligations seamlessly. Please check them out right away.

1. Impulsive Purchase
Do you try purchasing items even when they are not on sale, or without proper planning? If yes, there is a high chance you end up messing your financial goals each month. Well, to stop such an itch, ask yourself if you really need that dress or footwear or makeup product, every time you are about to place an order.

2. Credit Card for Points
According to specialists enhancing financial wellness in South Africa or in any other location, credit card companies offer rewards because they want consumers to spend more. Latest research has shown that utilizing credit card for points with approximately 1% return escalated monthly expenditure by $65 and overall debt by $110.

3. Keeping Up with Others
While some individuals do not care, many measures up to others under all circumstances. When a friend or a relative buy new vehicle, wear expensive outfit or goes on a luxurious vacation, it triggers competitive behavior, which eventually paves the way for poor spending decisions. Well, on seeing your neighbor pull out his shiny car, recall your objectives and priorities.

4. Immense Lifestyle Inflation
As you get old, you hope for a better monetary status. A decent job, raise, and economic inflation that positively impacts earning power. But no matter what you give perpetual debtors, they would get in trouble somehow. Lifestyle inflation, or in other words, changing your daily habits when your income is more is fine as long you do not go beyond stipulated resources.

5. Paying Minimum
Minimum payments are considered 5% to 7% of the total balance. This means by reimbursing a negligible amount every month, you are staying in debt as well as accumulating more interest. Next time, after opening credit card statement, remember you owe entire balance, and not what is listed under minimum payment.

6. Opting for Interest-free Loans
Just like credit card companies offer points to attract consumers, stores offering interest-free loans entice them to spend more than they can handle. If you bite on these deals, you will most probably not pay off what you owe within the interest-free period, hence, often slammed with fees along with retroactive interest.

Besides bad habits specified above, top-notch professionals working for financial wellness South Africa said individuals drowning in debt often expect a money miracle. However, quite unfortunately, they can never set things right by receiving a windfall, cracking best paying job’s interview, winning lottery, etc. Such attitude is dangerous because it pushes one away from a position of control. Instead make and adhere to a budget as soon as possible.