A bad habit can be hard to break, especially if
you don't know you have one. Ask yourself these questions to find
out where you can improve your spending habits:
1. Are you unable to save
any money? This means you're not reaching your goals.
2. Have you reached the limit on your credit
cards? This means you have no access to additional funds and could
be in trouble in an emergency situation.
3. Do you only pay the minimum amount due
on your credit card bills because that's all you can afford? This
means you're probably paying more money in interest than you should.
4. Do you buy things because they make you
feel good? This means you're not focused on your financial goals.
5. How often do you buy something and then
return it because you don't need it? This is called impulse buying,
which can happen when you don't plan ahead.
6. Do you "borrow" money from your
savings or emergency fund to pay the rent or other bills? This means
that your savings are not being used for the future, which means
they're not "savings" at all.
7. Are your monthly expenses, not including
your rent or mortgage, more than 20% of your take-home pay? This
means that your debts are too high for your income. You're probably
in over your head and could benefit from financial counseling.
8. Have you ever been asked to cut up a credit
card or been denied credit? This means you have a blemished or insufficient
credit history and could benefit from financial counseling.
If you answered yes to any of these questions,
then it's time to take a closer look at your spending habits. You
could be risking your credit and setting
yourself up for even bigger financial worries down the road.
Money management
