Bad Habits in Over Spending

People tend to liken debt to drowning. But we’ll take it one step further. Debt is like you’re drowning – while hungry piranhas lie in wait at the bottom of the ocean.

Excessive debt causes problems with your family life and weighs tremendously on your mental health. And between mortgages, car payments, and credit cards, it feels like the world is conspiring to land you in debt.

In a world that thrives from your monetary distress, we have your best interests at heart. Thus, we’re explaining some debt-inducing behaviours you must avoid in order to keep your finances in check.

 

1 Poor Discipline

Did you really need to purchase that $80 music production software you never ended up using?

Such fruitless expenditures cost big money over time because it’s money you otherwise could have invested.

Plus, these haphazard purchases tend to pile up. It’s amazing how one little thing here and another there turn into spending $500 of credit on products you don’t need because you lacked the will-power to make the right choice.

Take a week off from these ill-disciplined purchased and witness how life is perfectly peachy without them. Hopefully, the lesson sticks.

 

2 Losing Your Job

If you haven’t stored up a rainy-day fund, being laid off or fired is a one-way ticket to the land of consumer debt.

Improve your job security by making yourself an integral piece of the workplace puzzle instead of doing the bare minimum to remain employed.

Though, there are some unavoidable job-loss circumstances. Therefore, at the first hint of trouble, start pounding the pavement and looking for a new gig.

Most importantly, start a rain-day fun immediately so you’re prepared for the worst.

 

3 Having no Budget Plan

When lacking a plan, how can you know what to aim for?

Creating a financial road map in the form of a budget will keep you on a steady path where you’ll avoid excessive debt while accomplishing financial goals.

By regularly assessing your progress towards your budgetary benchmarks, you’ll be more inclined to improve and tweak your habits accordingly.

 

4 Over Spending Your Available Credit

Whether it’s a means of retail therapy or you don’t want to miss out on that bachelor party in Vegas, spending money you don’t have and repaying with interest is incredibly foolish.

The short-term gain of getting what you want with a credit card isn’t worth the long-term pain of its consequences.

 

5 Your Marriage is Going Downhill

As well as the ceaseless sting of a broken heart, divorce is accompanied by the agony of parting with half your net-worth and a lifetime of alimony and child support payments. Never mind the lawyer fees.

That’s why it’s of the utmost importance to be 100% sure before committing to a marriage. And once you are married, it’s crucial that you nip any lurking problems in the bud by investing in professional counselling.

Lastly, depending on your situation, you may want to consider a prenuptial agreement.

Conclusion

We’ll finish by saying this; don’t “get out” of debt. Avoid excessive debt in the first place.