Many people will be setting goals that focus on their financial health, however there are several habits that could hurt your bottom line in the long run.
Large Mocha with Soy and a nonfat vanilla scone for the third day in a row. Going out to eat several times a week while food rots in the refrigerator. These missteps are easy to make as well as common. By not paying attention to the money you’re spending, and not knowing how much available spending money you have could put you on the path to developing serious bad habits.
Budgets are helpful in understanding your financial situation, but not adopting one is a major error.
Possibly your resolution is to get in the best shape of your life, and you decide to get a pricey gym membership, however you never go to the gym, and therefore are simply wasting your money.
Maybe you also want to spend more time with friends. So you join the bowling league your coworkers attend – which isn’t free – and now need new gear for the activity. Additionally, the drinks and food that you are now ordering while out with those friends will soon become one of your worst financial habits. This could be an expensive resolution.
You always wanted to go to Ireland for a tour around the countryside. Why not cash in your 401k? Doing so could possibly be one of the worst financial habits for the year. You may not feel it now, but in the future you will really be missing out on the benefit of financial growth.
Defaulting on your car payment can be detrimental to your interest rate, and your credit score. You may find yourself in this situation if you adopted the habit of the daily coffee drink and scone without checking your budget.
Another one of the worst financial habits include signing up for free introductory offers, only to forget to cancel the service before the paid portion begins. Before you know it you are spending spending hundreds a year for services that you do not need.
If you have fallen into some of these traps, you may feel that your only choice is to get a payday loan to cover your bills. This is a huge mistake because the interest rates on these short term loans tends to be extremely high, and may lead to an ugly cycle that is difficult to escape. Using these services could be considered one of the 10 worst financial habits for 2016.
Not paying yourself in addition to paying your bills. Even if you are only able to save 5% of your take home pay each month, not doing so will make it so that you are not able to cover emergencies like car repairs, or medical issues.
Finally, using what little cash you have on hand to light a fire during the cold winter months is a very poor idea, and is the last of these 10 worst financial habits for 2016.
If you would like to contribute a guest post like this one, click here.