You are trying your best to save money, but you are still barely able to make ends meet? What could be the driving reasons behind such a scenario? Here are 7 toxic spending habits that might be affecting your family’s welfare.
1. Spending Without Keeping Records.
The majority of us are well aware of major life expenses such as rent, mortgage, and bank loan repayment, among others. We, on the other hand, fail to keep track of our daily expenses, such as eating out or buying stationery. Over time, the money spent on these small items adds up, causing a hole in your pocket and leaving you unsure of where it all went. Keep track of all of your small purchases and expenses.
2. Not Having A Monthly Family Budget.
If you don’t plan your budget, you might end up overspending on one expense while neglecting to set aside funds for necessities. Taking the time to gather as a family, write down your needs, and decide how to spend money on each additional expense is well worth the effort. It helps you save a lot of time, money, and effort.
3. Embarrassed To Keep A Record Of Your Expenses.
Hiding how you spent the family’s income because you are embarrassed by what you spent it on or are guilty of spending a large sum is a matter of betraying the family’s trust in you. Though it may cause some ridicule in the short term, it is excusable in the long run. On the other hand, if you hide it and are eventually discovered, you will face a slew of additional issues.
4. Unwanted Comparison & Competition.
If you constantly try to keep up with your rich friends/family/neighbours, you’re in a constant sense of competition with them resulting in you ending up making reckless decisions, which you might not be able to afford.
5. Not Involving Children In The Process Planning & Budgeting.
Planning the budget and saving money should be a family affair. The children in the family should be in the loop about the family’s financial situation so that they too can contribute to the family income and savings. By not doing this, you end up spoiling your kids by not controlling their spending habits.
6. Addiction To Shopping.
If you’re shopaholic and have no control over yourself when you see your favourite outlet having a 50% off sale, then you are a big threat to your family’s welfare. If retail therapy is your favourite pastime, you end up spending way more than you can afford, blinded by all the offers, deals and products on display.
7. Lack Of Financial Back Up Options.
Finally, not having a back-up emergency fund to fall back on in case of life’s unexpected mishaps is the way you end up hurting your family’s welfare the most. You run the risk of leaving your family helpless, in debt, and without a Plan B if you don’t save for the future.
If we are able track down these issues and are able to eliminate them one by one that will improve our relationship with money. It will contribute towards your better financial stability and enhanced money management capabilities.