Money is no respecter of person; it’s how you treat it that determines how it would treat you, and as long as you are on this planet, money is totally important.
Some money habits are just too dangerous to make; they could ruin your life and should be avoided at all cost.
These are some of those money habits that could ruin you.
1. NOT HAVING KNOWLEDGE OF WHERE YOUR MONEY IS GOING
This is the worst mistake you could make with your finances. If you don’t know where your money is going, you would definitely spend more than you think you are spending, and lose a lot of money in the process.
2. SPENDING YOUR WHOLE EARNINGS
I call this the ‘kill and divide’ principle. You shouldn’t spend everything you earn, but many people do that. Spending everything you earn could put your future in jeopardy. It’s a very risky habit that leaves the future unsafe for you.
3. SPENDING EXCESSIVELY ON IMPULSE BUYING
This is where a lot of people lose money — impulse purchases. Spending on impulse might look so small, but if you could keep a track of how much you really spend, you would be amazed at how much is going down the drain unnecessarily.
4. SPLURGING ON YOUR SAVINGS
Many people have savings and then go on to spend their savings. Savings should be savings; it’s risky to splurge on your savings.
5. BUYING THINGS BECAUSE PEOPLE ARE
Life isn’t a competition; there are people who are tempted into buying what everyone else is buying. You would spend a lot of money on unnecessary items when you do this, and Economics would teach you that money is a scarce resource.
Living a debt free life is a healthy financial way of living. Once you start running into debts, your financial health would start going down the drain.
These financial mistakes might seem ordinary, but they can ruin ones life.