If you want to stop being broke, here are several bad money habits that you need to break. Each of these insights changed my life for the better, and I’m sure they will do the same for you, too.
Not Being Prepared For An Emergency.
This is a common mistake that many people make. According to a study by the Federal Reserve, “almost 40% of American adults wouldn’t be able to cover a $400 emergency with cash, savings, or a credit card.”
That’s a massive problem. We’re in the middle of a recession and a pandemic. So inevitably, there will be emergency expenses that arise for pretty much every household around the country.
One of the best ways to prepare for an emergency is by creating a financial safety net. Because when you’re ready for financial emergencies that arise, you’ll certainly have peace of mind knowing that you can afford them.
Buying Things That Don’t Really Matter.
A lot of people stay broke by acting like they’re rich. Despite only having $120 in their checking account, they think it’s okay to go out for an expensive meal or buy a load of stuff from Amazon because “shopping is fun.”
I know that’s a hard pill to swallow. But it’s true. Because when you spend all of your money on things that don’t really matter, you cannot afford the things that do.
Without knowing you, I can tell you’re capable of achieving many great things in life. You can improve your finances, create an emergency fund, and live each day with peace of mind.
All of that is certainly possible. You just need to eliminate the bad habits that are keeping you broke, and replace them with better ones that enable you to live the life you desire. So what are you waiting for?
Start now.