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8 habits that keep you poor despite having a decent income

Have you ever wondered where the majority of the money you earn goes, or why even with a decent income, your bank account balance at the end of each month is still not substantial?

Administrator

8 December, 2023

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(TNO) Have you ever wondered where most of your hard-earned money goes, or why despite having a decent income, the balance in your bank account each month is not much? The 8 most common money-spending habits that make many people, despite their decent income, poor below can give you an answer, according to the website Life Hack.

Having many habits that make you poor despite your decent income – Photo: Shutterstock

1. Spending more when income increases

There’s nothing wrong with raising your own living standards when you can. However, if you’re someone who always spends more when your income increases, or even spends more money even when your salary doesn’t go up, you’ll find it difficult to save money. Always try to keep your expenses stable, even if your income goes up, is one of the ways to get rich from spending.

2. Focusing on the present, “neglecting” the future

Usually, people tend to focus more on current needs and think they can meet future needs in the future. To avoid this not-so-positive habit, you should consider long-term plans and the future in every financial plan. Pay attention to the present, but don’t forget to save for the future.

3. Thinking it’s too early to start saving

When you’re young, you find so many things that money can buy, and you come up with countless reasons to spend money. Many people think “right now” is too early to start saving, investing. Financial experts believe that everyone should save before spending, that is, set aside a portion of your income for savings first, and then spend the rest comfortably.

4. Not recording expenses

Most people think they know where the money came from and what they used it for. But not everyone realizes that small expenses often deplete their wallets more than large ones. Keeping a record of your income and expenses, no matter how small, is a great idea for controlling your financial situation.

5. Not setting a budget

You can record everything you buy, but don’t forget to start with a budget. Having a realistic and specific budget is the foundation for personal financial planning. In addition, always spending within the planned budget will help you avoid unnecessary expenses.

6. Unclear about desires, needs, and personal financial capabilities

To save and get rich, it is essential that you value what items, products you need to have, items you can have, items you can not have, and items you do not need. Prioritize your financial goals. For example, if getting rich is your top priority, you may have to give up some current pleasures, whether you want to or not.

7. Neglecting debts

Interest rates can eat away at your financial cake considerably. Many people find it difficult to break free from this vicious cycle and as a result, they save very little or almost no savings. To break free from this situation, you can try to make a specific plan for expenses and debt repayment, and strictly follow it.

8. Constantly buying new technology devices

There’s nothing wrong with shopping for tech gadgets and utilities that you truly need. However, running after technology devices, buying a new smartphone just because it’s the latest version on the market, can harm you more than benefit you.