How to Know If You Have Poor Financial Habits
What causes a person to be poor? It’s not always about how much money you have in your wallet or bank account or having to wear out-of-date clothing or generic brands. Poverty is defined by more than just the amount of money you have on hand. It is about how your lifestyle and how you manage your finances as a whole.
Sean Martin D. Plantado, head of Digido.ph Customer Care notes that statistics show that only 1 in 4 families in the Philippines has savings. Given 2020, most Filipinos have lost their jobs and have to depend on government stimulus packages. This is a habit that Filipinos need to change. This is a very useful link for them: how to check your credit score philippines.
That being said, what causes you to be poor? These signs will tell you exactly what is going on.
Table of Contents
1. You are easily satisfied by the amount you are making
Commodity prices are rising at an exponential rate. Your one-month salary will soon be insufficient to cover all of your expenses. You are in financial trouble if all you want to do is get by and live paycheck to paycheck. Relying on one source of income despite price increases may cause problems in the future. Because you are only concerned with the present, you may jeopardize your future.
2. Investing is not your priority
The truth is that having a savings account is insufficient. Your money does not grow as much as you would like, and its value depreciates. This is why financial experts advise people to put their money into investments. If you choose to stick with your savings account instead of exploring your investment options, your financial life may suffer. The market offers numerous affordable investment opportunities. All you have to do is research the best options for you.
3. You are always excited when there is a sale
There’s nothing wrong with purchasing items when the entire mall is smiling. It’s normal to feel your heart race when you see big discounts on the price tag. Still, do you really need to line up in front of the mall entrance just for this? There is always this desire to purchase items that you do not truly require. Worse, you justify your purchase by claiming that it was on sale, allowing you to save money. Making this a habit will ruin you.
4. You are ignoring your debt
If you are in debt but refuse to do anything about it, you are likely to exhibit negative financial behaviors such as tearing up bills without opening them, becoming very uncomfortable, defensive, or angry when people discuss your debt, and not knowing how much they owe. Pretending your debt does not exist is not going to help. Denial will make things worse for you. Instead of engaging in this dangerous behavior, make it a habit to deal with your debts when you are calm and ready. The more knowledgeable you are regarding your debt, the better prepared you will be to deal with it.
Create a budget that includes payment plans for each debt once you know how much you owe. Pay your bills first, then focus on the account with the smallest balance if you owe a lot to multiple creditors. For the majority of people, taking small steps forward is more manageable.
5. You only do what you know
It’s understandable that you don’t know everything. This is why there are always a plethora of informational articles available online to educate people about various topics. It’s a good thing if you allow yourself to accept new information. On the other hand, if you refuse to accept new things and stick to what you know, your growth may be stunted. This may also impede self-development.
6. Your priorities are skewed
There is a distinction between what you need and desire. Needs are non-negotiable and must be prioritized, whereas wants can be postponed. If you can’t tell the difference between needs and wants, you won’t be able to decide what to prioritize first. This could be problematic because you won’t be able to set proper and wise future goals.
7. What you see is always what you follow
Each year, new trends emerge. You will constantly see friends going here and there and owning these things, which will make you jealous. If you are constantly trying to keep up with what you see, you may end up jeopardizing your financial future. This is why, once again, it is critical to understand your priorities in order to set appropriate goals. You may also read on pna.gov.ph, how pandemics changed Pilipinas spending behaviors.
Do you exhibit any of these symptoms? Don’t be concerned. It is never too late to break these bad habits and save your financial future.
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