Comment remédier aux mauvaises habitudes qui coûtent cherApril 26, 2017

How to get rid of expensive bad habits

There are many people that complain about being in a poor financial situation without any reflection about how they ended up in it. Canadians are now in their worst debt ever. If we were to say that debts are a normal part of life, it is still important to keep them under control and not end up with more bad debt than “good”. How can you tell the difference between the two? This guide will help you understand the distinction better.

Tell-tale signs

Take a look at these situations to see which of them seem familiar:

  • Are you stressed out, anxious, or concerned that you will never be able to really cope?
  • Do you have an unsecured account or line of credit?
  • Have you been denied credit at a store?
  • Are you behind on your bill payments?
  • Do you conceal some things about your expenses from your loved ones?

If your answer to more than one of these questions was “yes,” you may have some bad financial habits. What is the cure?

When desires are mixed with needs

Some people see everything they want as “indispensable.” They must have what they want right away, even if they do not really need it. The expenditure is not necessarily always linked to food or other essential need.

That’s why it is important to learn to differentiate between “would be nice” and “must have.” This difficulty is at the core of many bad financial situations.

The best solution to this problem is to understand yourself, your limits, desires, and needs, and then to ask yourself before every purchase:

  • Do I really need this?
  • Do I need this right away?
  • Can I afford this?
  • What is the worst thing that can happen to me if I do not buy this now?

Insufficient savings

If you were to have an accident tomorrow morning and spend a long time in a hospital, you would not have a stable income source for a while. Depending on how severe the accident is, the period with no income could last longer, while the financial obligations and bills won’t cease to exist.

The unexpected is, by definition, unpredictable, but it is essential to always have a safety money cushion to get back on track in case an accident or an exceptional event occurs and forces you to pay more than you had expected. The key word here is “essential”, as the random and unexpected events mean that we must be ready at any moment to pay what it takes to solve the problem.

The influence of friends and other people

Friends can influence many of our life choices (career, tastes, interests, activities, etc.). These influences are sometimes not visible and may have negative effects. The social pressure to follow the group or to stand out from the crowd may cause you to make superfluous purchases that do not meet real needs.

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