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If you are tired of being broke in 2020, you need to stop bad money habits that you are used to.
Bad money habits are part of our day to day activities that you need to ditch if you want to become financially dependent in 2020.
If your goal in 2020 is to save more money, then you are in luck as we are going to look at 8 bad money habits that you need to ditch in 2020.
Many people find it hard to save money, and if you are part of this group, you need to start practicing how to save money every month.
8 BAD MONEY HABITS THAT YOU NEED TO DITCH IN 2020
There are proven ways that you can employ to stop living from one paycheck to another paycheck.
- Lack of Budgeting
Lack of budgeting is the main culprit why many people find it hard to save money every month. This is the very first bad money habit that you need to stop.
When you have a budget, you are in control of your finance and can help you to reduce your spending because you know how much you are spending in a month.
- Paying your bills late
Another bad habit that you need to stop in 2020 is the late payment of the bill. For every day that you delay your bill payment, there is an extra interest that can affect your finances very badly.
Once you write down your monthly budget, you can look at the due date of the bill and pay before the due date.
Another way of avoiding late payment or extra payment of the bill is for you to register for their auto-payment plan.
- Not buying when there is a promo
If you are seriously considering reducing your monthly running cost, then you need to start planning ahead by buying what you need during promo day. You should also be on the lookout for a coupon that you can use to reduce the price.
Another tactic for you that you can use to reduce your spending is for you to join your Facebook groups full of people who are looking for coupons.
- Paying for subscription and membership that you don’t need
Take a look at your monthly expenses and you will discover that there are subscription and membership that you are not using but you keep on paying for it every month.
- Impulse buying
Most people buy things they don’t need because they like the product.
Buying any things that you like would drain your finance and you need to stop these bad money habits in 2020.
- Not having an emergency fund
Emergency funds are money you set aside when an emergency arises and you need money badly.
Most people don’t have an emergency fund and when an emergency arises, they borrow money which is bad for their finance.
If you want to avoid being broke in 2020, you need to set aside some part of your income as an emergency fund.
- Relying on credit cards
When you rely on credit cards every month for your basic needs, you are simply put a noose around your neck.
The money you spent when you use your credit will be higher compare to using your cash. The credit card comes with a high-interest rate and affects your ability to save money.
- Not making enough money
If you dream of financial freedom, you need to make more money than you need. You can save the extra money you make for an emergency fund or investment fund.
There are a lot of ways that you can use to make extra money online, this include:
- Virtual assistant
- Blogging and vlogging
- Completing survey and task
- Teaching the English language online
Bad habits are very hard to break, but if you are determined to avoid being broke again, you need to avoid these bad habits and watch as your savings increase.