Putting money in a savings account is a difficult task. However, some hard-wired money habits that are already ingrained in our minds can make it more difficult.
Here are five money habits that could be impeding your path to financial stability:
1. The ‘Mamaya na’ or ‘Mañana’ Habit
Even the best of us will procrastinate from time to time. The Maana habit is the act of putting off important tasks in the belief that they can be completed later when the circumstances are more favorable.
Though it can be applied to other things, it is especially harmful when it comes to money. People frequently put off saving because they believe they can do it later when their finances are better. This is not a healthy mindset to have because anyone, regardless of their starting point, can begin saving.
2. The One-Day Millionaire
We’ve all been there: you’ve been suffering through a nearly empty wallet during petsa de peligro season, and when your salary finally arrives, your first instinct is to treat yourself. While there is nothing wrong with rewarding yourself, it can quickly become problematic if not done responsibly.
Before you splurge, make sure you’ve covered all of your necessities (and if you can save some, even better) so you don’t run out of money before your next paycheck arrives.
3. Tolerating Peer Pressure
Nothing is wrong with socializing. It only becomes a bad habit if you allow it to interfere with your financial management. You don’t have to say yes to every weekend invitation from your friends or give in to ‘liberal’ calls if your bank account can’t handle it. Don’t let the ‘hiya’ factor get in the way of your financial freedom; instead, make it a habit, to be honest about your financial situation.
4. Buy it forward
No, this is not the same as the pay-it-forward habit. When you ‘buy it forward,’ you spend money on items with credit that you do not yet have. A good example is when people use their credit cards to go shopping, thinking they can pay it off with their next paycheck. While this can work if you are extremely good at managing money, it can also easily harm your finances if you lack self-control. As a general rule, it is best not to spend money that you do not yet have. If you must, set a spending limit.
5. The ‘Okay na Ako’ Attitude
What’s worse than bad money habits? having no financial objectives. Many people are struggling financially because they were unable to develop good money habits. Remember, no one is too young (or too poor) to begin saving.
Can you relate to any of these habits? Which of these are you guilty of?