Change Your Habits, Change Your Money

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Photo Credit: Karolina Grabowska

The Debtor

A consolidation loan will help you compile your debt and potentially get you a better interest rate and one simple monthly payment. Still, if you don’t transform your financial habits, you will soon find yourself back in debt again.

The consolidation loan is merely a cover-up for your poor money habits. Frequently, people find themselves conducting credit card balance transfers, taking out personal loans, compiling their debts, and borrowing more than they can afford; it’s a never-ending cycle that will continue until they treat the root issue: poor money management.

The Overspender

Some of us might know someone who seems to always run out of money (maybe it’s ourselves); they always have a sad story or excuse for why they can’t afford or pay for something.

This person never has enough money because they constantly overspend their paychecks. These people are looking — with both eyes — for their next paycheck because they need it badly.

The overspender will continue to rely on the next bit of cash coming their way because they never save, invest, budget, or live below their means.

The Constant Overdrafter

“D*mn! Another overdraft fee.” The person who constantly deals with overdraft fees will continue to deal with these fees until they create and follow a budget. The reason they overdraft is because they don’t actively monitor their money.

The Late Payer

Many people that pay their fees and bills late do so because they can’t afford to pay on time; this could be for many reasons:

  • They’re financially irresponsible.
  • They don’t set up automatic payments.
  • Their income is too low (a solution to this is to get a higher-paying job).
  • They’re overspending throughout the month and not leaving money aside to pay their bills.

Always Behind On Retirement Savings

People are primarily behind on their retirement savings because they haven’t saved enough money.

If you want to change this dynamic, all you need to do is determine the number that would be comfortable for you in retirement, use a retirement calculator to determine how much you need to save monthly, and set up automatic transfers to your retirement account.

Until a person does this, they will remain behind on their retirement savings. If you can’t afford to save the amount of money you’ll need to retire comfortably, then save what you can. Something is always better than nothing.

Transforming Your Money Starts With Your Habits

Until you change your habits, your financial position will remain the same. If you aren’t happy with your relationship with money, you can start taking action today to transform your finances. Don’t take action, and continue doing what you’ve always done, you’ll continue to get the same results that are holding you back financially.

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This article is for informational purposes only. It should not be considered Financial or Legal Advice. Not all information will be accurate. Consult a financial professional before making any major financial decisions.