Habits are often hard to stop because they are habits. It means, they are already part of your routine, and how you live your life. Building your own habits is fine especially if they benefit you to live a better life. However, some habits can be damaging to you either financially, mentally, or physically. Hence, it is important to practice mindfulness when choosing and implementing habits.
Finding your own financial freedom
Most people now have become familiar with the term FOMO or fear of missing out. Hence, they start to list many things they want to do or have. However, FOMO often lead to unhealthy habits where you spend enormous amounts of time and money trying to fulfill your bucket lists. More often that not it leads to unhappiness, inadequacy, and jealousy.
Instead of implementing FOMO, why not consider JOMO or joy of missing out. It is where you consciously and mindfully finding your own freedom by eliminating things that just slow you down. And here are poor financial habits that you need to remove from your life:
Spending more than you earn
Spending more than what you actually earn is not a healthy financial habit you need to keep. It only leads to accumulating unhealthy level of debts such as high interest credit card debt. Start a habit of living within or below your means. It may require budgeting but it will be impactful for you to build a your financial freedom.
Living paycheck to paycheck
Living paycheck to paycheck may not sound bad but it may set you up for disaster. Even though you are not spending more than what you earn and currently debt-free. Living paycheck to paycheck doesn’t mean you have to spend all your income. Instead, try to set aside for emergencies, investment, or long-term savings for retirement. You can create and follow your budget to help you build your discipline in managing your finance. This way, you will no longer full of worry when the unexpected hits you.
Implementing herd mentality bias
Following the crowd is not always a wise thing to do especially when it comes to financial management; be it for your personal or business finance. Copying what others are doing including in the matter of making investment decision can be harmful. Keep in mind that you may have different financial goals from others you are trying to follow. Hence, what works for them might not work for you. Build your own plan and strategy that meet your own goals.
Managing your financial life without a plan
It is one of the most common mistakes done by most people even those who are involved in business industry. Financial management will only work with thorough planning. It is just like how you build a home without a plan. You will not know what materials to use, how to estimate cost, or how to build a foundation. Making plans is necessary when it comes to financial management. With the right financial plan, you have the flexibility to pivot or make changes when needed.