Everyone wants to be rich, at least slowly, but few people can successfully do this.
There are many reasons here, such as personal ability, luck, hard work, etc. However, among people who cannot escape the fate of poverty, we can always find something in common.
Next, let’s take a look at some of the most common wrong spending habits. These bad habits usually lead people to major financial difficulties, or even never be able to extricate themselves. Only by avoiding these bad habits can you really go Take the right path to wealth.
1. Spendthrift
Even if you have huge wealth, every dollar you spend will result in a dollar less.
It may not seem like a big deal when you're grabbing a few drinks or dining out or ordering a pay-per-view movie, but every little thing adds up to an impact.
Assuming that you only spend 200 yuan on dining out per week, you will need to spend more than 10,000 yuan per year. This money could have been invested to generate more income.
If you're enduring financial hardship, it's even more important to avoid this bad habit—after all, if you're thousands of dollars away from bankruptcy or paying off your mortgage, every dollar counts more than ever. .
2. Auto-renew business
Ask yourself if you really need something that will keep you paying every month, year after year.
Things like cable TV at home, a music service, or a high-end gym membership may force you to keep paying for it, but you rarely use it.
When money is tight, or you just want to save more money, creating a leaner lifestyle can go a long way toward increasing your savings and easing your financial struggles.
3. Living by borrowing money
There are two types of borrowing money here.
The first type is to use credit card overdraft limit to buy expensive things, which seems to be more common among young people.
Even though more and more people are willing to pay double-digit interest rates for mobile phones, home appliances and many other items, it is obviously unwise to do so. If you just do the math and know the interest rate on your credit card, you will be tempted to buy it. Things are more expensive.
In some cases, using credits may also mean that you will spend more than you earn.
The other type is not to mention borrowing money to survive. They have to rely on the support of family and friends every month to barely make ends meet. If this is the case, they must first go out and get a better job to support themselves before talking about anything else.
4. Buying a new car
In fact, many people don’t realize that a car is a negative equity from the moment you buy it.
You need to invest a lot of insurance, gas or electricity every year. If the car breaks down, there will be additional repair costs. Moreover, many people buy their cars with a loan, and you still need to pay interest on this depreciating asset in the years after you buy the car, which further magnifies the difference between the car's value and the purchase price.
What's even worse is that many people like to replace their cars every two or three years, and by doing so they actually lose money every time.
5. Spending too much money on a house
When it comes to buying or renting a house, bigger is not necessarily better. Unless you have a big family, choosing a house over 150 square meters will only mean more expensive taxes, maintenance and Property costs.
Do you really want to spend thousands or tens of thousands more on your monthly budget for real estate?
6. Moonlight Clan
More and more people have become the Moonlight Clan. They spend almost all their monthly salary within a few days of receiving it.
It is actually extremely dangerous to do this. Life can never go smoothly. If you are not prepared, any unforeseen problem can easily turn into a disaster.
The accumulation of monthly overspending will put you in a dangerous situation. Living on your monthly salary means that you need to earn every penny of this job. Once there is a problem with the company's operations or the economy is in recession, you will feel very uncomfortable.
7. No plan
In fact, for most people, the most dangerous situation is precisely not having a plan for the future.
Especially the financial plan, because your financial plan determines to a large extent whether you will become a rich person in the future.
The sad thing is that people can spend countless hours watching TV series or scrolling through Weibo, WeChat and TikTok , but it is difficult for them to set aside two hours a week to plan their financial plans.
It's like walking. If you don't know where your destination is, you may get lost at any time.
8. Written at the end
To summarize, in order to stay away from the danger of overspending, the first thing we have to do is to cut down on our rapidly increasing small expenses, and then continue to monitor all large expenses to see which money should be spent and which money should be spent. It can be saved.
Develop a feasible financial plan for yourself, save some of the money you earn every month, and then start learning to invest and learn to make money make money.
Finally, stay away from the bad habits just mentioned and persevere, and then you will find that you are getting richer and richer.
What do you think about the bad habit of spending money? You are welcome to leave a message below for discussion.
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