Denial, Denial, and More Denial: Dictionary.com defines it as a disbelief in the existence or reality of a thing, which sounds about right if you find yourself spending like a person with an income 2 or 3 times greater than yours. The first step towards making positive change is accepting the truth, otherwise what chance do you have in changing your spending habits?
Abusing Credit Cards: The credit card industry depends on those who use credit to live beyond their means. If you can’t live below them, try living within your means at the very least. In the words of financial guru Lynnette Khalfani Cox, “Avoid trying to live what I call the ‘bling-bling’ lifestyle and guard against that temptation to ‘keep up with the Joneses.’”
Paying Too Much in Fees: $2.00 here, 3.50 there – it may not seem like much, but financial fees stack up and can drain your account like a sieve. Avoid frequent ATM charges by withdrawing cash at your own bank and whatever you do, pay your credit card bills on time. If the late fees don’t screw you, a 30% APR will.
Late or Non-Bill Payment: Not a good look unless you want the lifestyle of the broke and struggling your whole life through. The affect on your credit score and charges in late fees can lead to corporate banking enslavement and even bankruptcy in the long run – which really ain’t no joke.
What Budget?: If you are among the broke, young and struggling, the “term disposable” income is not a part of your vocabulary. Living on a limited income means that each and every penny has to be accounted for, unless you’re not averse to spending a little time in a homeless shelter. Creating a budget is a great tool that not only helps you to handle the logistics, can allow you to put aside the necessary funds for savings and recreation.
Refusal to Save: “Save your money” has got to be the most commonly used financial mantra. Some experts call it “paying yourself first,” but what it boils down to is that you consistently put a portion of your income (no matter how small) away for the future. CONTINUE READING...
