Almost everyone has these moments where they reflect on their lifestyle, habits and their lives generally. If you’ve never had one of these, maybe it’s time to give it a thought. Are you really living your best life?
It’s okay if you don’t have an answer. This article is going to help you figure out where you stand when it comes to financial habits. It’s important to know so you can make proper adjustments and work towards becoming financially independent. Now that the year 2021 is almost at its end and we’re waiting to usher in 2022, now is as good a time as any to do some financial reflection.
If you constantly find yourself in these situations, you might be living above your means.
1. Your savings account isn’t growing: If you notice that the money in your savings account isn’t growing over time, odds are you are spending quite a lot. Sure life happens and unforeseen expenses can come up, but if you haven’t been able to improve your savings in a while, or worse, you have no savings at all, it might be time to re-evaluate your financial habits and see if you’re spending more than you should be.
2. You’re constantly in debt: Are you always in need of ‘urgent 2k’ even when your salary should last the whole month? Constantly needing to borrow money is a huge red flag in your financial life that needs to be handled. Managing your debt is an important financial hack. Apart from the fact that debts are a weight on your finances, it can also weigh down your relationships when your friends are your creditors. No one likes an “onigbese”.
3. You have an impulse buying habit: Impulse buying is the enemy of good financial habits. Giving in to the desire to buy almost anything you fancy when you didn’t plan for that purchase can ruin your finances. That lady that keeps showing up at your office on salary week to sell her designer watches, look away when next she comes around. You can make a reasonable budget for unexpected expenses, but do your best to stick with it and not go overboard.
4. You don’t know where all your money is going: You get your salary every month and the week after salary week, you’re broke again. Your money wasn’t spent on necessary bills, you just can’t account for anything. This is a very popular problem with many individuals who earn and is one of the biggest indicators that you are buying things you shouldn’t. Try to keep track of purchases that stand out. Write them down if you have to. It’ll help you stay more accountable and plan better to avoid living from paycheck to paycheck.
5. You struggle to pay important bills: Struggling to make payments like your rent, electricity and other utility bills even when you can comfortably afford them on your current salary is another sign that your spending habits may not match your earnings. These bills should be prioritized when planning your finances for the month, but if you find yourself unable to pay and you can’t figure out why, you might be living above your means.
Money matters can be quite delicate and that’s why regular reflection is important. Keeping track of your expenses and knowing where to improve might just be the key to the financial freedom that you seek.
If after reading this article, you find that you may have some bad money habits, it’s time to improve. You have taken a huge step in solving the problem. Identifying areas in your life that could use some work is a big step towards living a better life.
Maintaining discipline in your saving habits can be difficult and it’s understandable if you need some help. That’s why we’re here; to help you cultivate better habits. Create a savings plan on the Crowdyvest app. With our Vault and Pace options, you can save up to meet your goals without worrying about dipping into it because we lock your savings away safely for you for a fixed period. The third savings plan is called Flex, and with that option, you are free to withdraw money whenever you want.
Get the Crowdyvest app, sign up and start saving today!