Bad money habits can create massive harm, frustration, and stress in your life. Think of the high interest you pay on loans, leaving you with nothing for emergencies. Perhaps you have an inclination for uncontrolled spending or living paycheck to paycheck.
Or, you are overburdened due to poor income generation choices that are more of a money pit. It is time to take a reality check and turn the tide. By mid-year, you can reflect, digging deep into your circumstances to rid behaviors that derail you from financial success.
Here are some of the worst money habits to drop in a new direction in the year’s second half.
If anything is affecting the majority of Kenyans right now, it is the high living costs. Most are turning to mobile and payday loans to help settle household bills. But while these loans can look like a quick and easy fix, they can eventually worsen your financial situation.
You might argue that they are fast and convenient. But that is why so many people are trapped in that massive debt cycle.
Mobile and payday loans are legal and regulated by the central bank of Kenya and could appear to be a timely lifeline if you are low or late on rent. However, here is why you should drop them now.
A leading reason most people fail to achieve their financial goals is shopping on impulse without a prior plan. But why do people cave into unplanned purchases?
It is because it is fun and exciting and gives you an adrenaline rush. That enticing grab of a new handbag or baseball cap might not seem like a big deal.
Again, most people also buy, thinking they have a deal or a good sale. They fail to realize that advertisers trap them in unending marketing gimmicks. Here's how to stop shopping on impulse.
Read Also: 10 Tricks to Stop Impulse Spending in 2022
How Kenyans eat keeps changing daily. And even though food prices have been abnormally high recently, many people can't resist the allure of eating out. To make things worse, you can now conveniently order any type of meal through numerous quick interface delivery apps.
Each trip to a restaurant or food takeout results in more spending than you would have cooked your food at home. Hotel food, even when blunt, carries additional charges that you would have avoided if you had made more nutritious and value-driven food in your home.
Okay, many reasons make people want to dine out - socializing, networking, celebrating, and maybe taking a break from their busy and boring lives. However, assuming you are dining out for convenience's sake. You would be better off saving some serious money by eating at home.
Read Also: Tips For Living on a Tight Budget Like a Pro
Living beyond your means implies spending more money than you can afford. Telltale signs you are spending beyond what you can afford to include those escalating house bills or borrowing
for emergencies. Perhaps you have a penchant for driving those expensive cars you can barely afford. A simple guide is:
What do you do when your friends and relatives become your financial business? You might feel overburdened and fail to meet your financial goals. While you can't live in a vacuum, your resolve to be a money-sounding board for your clan is disadvantageous. For example;
Here is how to stop it now for a new direction in your life.
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Emergency expenses can creep in when you least expect them. It could be a broken sink, a sick child, or running out of gas at the odd hour. Without an emergency fund, you are a cooked goose. How do you break the lack of this critical savings account?
Addictions of any kind can be expensive to maintain. Gambling, alcohol, and drugs can drain your resources, compromising your financial goals. How do you ditch your addiction? Here is your guide:
Most people are hesitant to save or invest until they have tons of money. Sadly, time will never be on your side. Your capital may also be elusive. Start with the little you have now. You can habitually stash a little each month for emergencies or future purchases. Once you come into a windfall or even a bonus, you can reevaluate how much to spend, invest or save.
Suppose you have set up your emergency or retirement savings fund. Keep a safe distance from it, and avoid the temptation to withdraw. Interfering with your most critical savings equals putting your financial future at risk. You might never grow as it is intended.
Keep your hands off the kitty unless there is an unavoidable situation/ catastrophe. The trick would be to move such a fund into a high-interest savings account. You can also opt for money market funds that grow your money due to the high-interest rates.
Who said dropping those terrible money decisions and habits is easy? At the best of times, it can be tricky to adjust. But it's the only and real way if you crave financial freedom. Get started today to see how fast your money situation changes by the year's close.