5 Habits That Can Make You Broke
You just finished work, and you planned to have a stroll around your favorite stores to check if there’s something you might like. You look around and find a perfect pair of shoes that look like everything that you ever looked for in shoes. You check the price, it’s a bit higher, but who cares, you wouldn’t be able to find another pair like these again. And in your number! You reach for your wallet, and then, it strikes you. You are so tight on the budget that you shouldn’t even think of shopping at the moment.
What would you do in this case? Buy it or leave it? Well, depending on how short on the money we are, we might end up buying it or not. But what also determines the likeliness of buying the shoes that you really like (but don’t really need), depends on your self-discipline as well. The more you know to control your buying impulses, the likelier it will be for you to save some money by the end of the month. But is this the only habit you have to control? Not really…
There are plenty of financial habits you might be doing right now that hurt your budget for a long time. Let’s see what are some common habits that can eventually leave you broke:
1. App Addiction
Who would think of apps first when it comes to your personal finance, right? Exactly, most apps you might have paid for ( only $1.99) and used only a couple of times, aren’t really worth that money at all. They might look interesting and all in the beginning, but did you really need to buy it? All those small purchases eventually add up and all together hurt your budget.
Did you check if you’re paying monthly for the app? Did you look for free alternatives for the app you bought? How often are you REALLY going to use this app? Next time think it through, and decide if the app is really worth the purchase. Don’t forget that some apps can lead you further to their funnel, making you pay for additional features, new items in games, etc.
If you’re a real fan of apps, maybe set a rule of how much you can spend on a monthly basis on your entertainment.
2. Ordering Wine When You Dine
You might be a big hedonist that enjoys different aromas and nuanced tastes of different wines, but if you always have wine when you have dinner, you might have lost an entire fortune on this “small” habit of yours. Did you know that most restaurants actually make the most profit of the beverages they sell (especially the alcoholic ones)?
Enjoying wine at restaurants is definitely a pricey habit, so if you want your savings to increase, consider skipping wine when you dine out or look up for Bring Your Own Bottle- friendly restaurants.
3. Going Out For Lunch
In 2015, Visa did a survey which showed that the average American spends about $20 per week on eating out lunch, which adds up to not-so-small $1,043 a year! The same survey also showed that Americans usually purchase lunch from a restaurant twice a week spending around $11 on an average meal. Just to tell you how much you would save if you prepared all your food, an average home-prepared lunch comes at the price of $6.30.
You would be able to save so much in the long run if you reduced your restaurant lunches.
4. Buying Groceries Without A Shopping List
Supermarkets and stores are made to intensify our “impulse” buying, so it’s not really strange that you end up buying “just one more thing” that you didn’t really need. A great way to refrain yourself from buying those additional “small things” that in the end make a huge difference in price, is making a shopping list whenever you go shopping for groceries.
This way you will know exactly what you’re looking for, and will easily know that you might have gone overboard if you find a lot of other things (not found in your checklist) in your cart.
5. Believing You Don’t Need Health Insurance
You might be young as much as you want, and think you are completely invincible, but here’s a thing that might dim your hopes of increasing (or even keeping) your savings – not having health insurance. Sports injuries or unexpected accidents can occur out of nowhere, and when they occur, they can seriously damage your budget and result in significant financial setbacks.
Since health is the most important thing, having enough money to ensure you are healthy, vital and happy is a must. But a lot of us find health insurance to be too costly, and end up not buying it with the approach that “You won’t even need it”. Well, unfortunately, things don’t always work out the way we plan, and that’s why being prepared (by buying health insurance) is a better way to control your spendings in the long run.
If something happens, you won’t be left sick/injured and broke at the same time.