Debt isn’t something that happens coincidentally or accidentally as you go about your daily living. Certain spending habits lead to debt. Recognizing these habits now could save a lot of money and stress later. If you want to avoid debt and reduce the debt you have, you must eliminate these bad habits.
1 Buying Things “Just This Once”
Admit it: How many times have you splurged on something you knew you couldn’t afford but justified the purchase by saying you’d do it “just this once”? Maybe you bought an ultra-expensive suit, took an over-the-top vacation, or let a car salesman talk you into the priciest car on the lot.
The problem with these one-time indulgences is that they can be costly. Even worse: these “one-time” extravagances can become habitual mistakes. Maybe you won’t go out and purchase another red convertible, but the mindset that allowed you to do it has taken root.
So the next time you want another luxury item that’s financially out of reach, you simply convince yourself (yet again) that it’s not that bad because it’s just a one-off expenditure. It’s time to stop kidding yourself. A habit is called a habit for a reason. It’s because you’re doing it repeatedly. Break the cycle by saying “just this once, I’m going to say no to something I can’t really afford.”
2 Saying “Yes” to Everyone
Many of us — especially women — have been raised to be nice and accommodating to the people around us. And of course, we all want to make our family and friends happy.
When relatives and friends ask for things that are a financial stretch for you — such as loans, investment funds or cash to start a business — that’s the time to pull back and recognize your financial limits.
Saying “yes” to every economic request that comes your way is a quick way to drive yourself into debt. What’s more, it could put those very same relationships you cherish at risk as well.
Purchasing a Gift for Someone — and One for Yourself
“We have all done it,” “You see something you like and think, ‘Wow, that is so cute. I will buy one for so and so and one for me.'”
Whether you’re holiday shopping, buying a birthday gift, or selecting a present for another special occasion, be careful that you don’t fall into the trap of always buying something for yourself when you really just intended to get a gift for someone else. Otherwise, you could wind up with a pile of debt.
Check out more articles on the blog for more finance tips.