13 Bad Financial Habits It’s Best to Lose by the Age of 30
30 is a great age. Psychologists call 30-year-old’s young adults. But why do some 30-year-old people have cars, apartments, stable jobs, and some live paycheck to paycheck? It’s all about harmful financial habits that don’t allow them to achieve success.
Bright Side has done some research on what financial experts say and will tell you about the habits you should forget in order to become a successful person by the age of 30.
1. Making long-distance phone calls
If you make long-distance calls often, this is probably something you spend a lot of money on. In this case, you should pay attention to software for internet calls. Look, it doesn’t have to be only Skype: there are a lot of other apps that are modern and convenient. You can use them to make video calls.
The most popular one is probably WhatsApp. It’s a simple app to use, but it has one serious flaw — too much spam, including fraud. You can try Talky, WeChat, or Google Hangouts. These apps are intuitive, don’t have any ads, and are completely free.
2. Retail therapy
Shopping for mood improvement is a really bad financial habit. How often do you buy something that you didn’t plan for? According to research conducted by Slickdeals, American customers make at least 3 purchases a week that they didn’t plan for which affects their financial situation.
Financial experts have explored and explained why retail therapy is a bad idea. First of all, you risk buying a bunch of unnecessary things. And even if they don’t cost much, you will have spent a huge amount of money by the end of the year. Second, buying something without thinking may indicate that you are trying to solve your psychological problems using shopping. It could be low self-esteem or childhood issues.
Fun can be completely free — walking with friends, a picnic with coworkers, or playing sports in the open air can improve your mood just as well as shopping. And these things are way safer for you financially.
3. Treating credit card money as your own
Credit cards are not a source of income, this is something that many people forget about. If you treat your credit card money as your own money, it might be best for you to stop using them altogether. A high limit on your credit card account often creates the illusion of having money you can spend. But in order to not pay the interest to the bank, you need to pay off your debt every month.
4. Not planning your vacation in advance
An unplanned vacation can be a huge problem for your bank account because prices for tickets and hotels can be way more expensive. It’s not just the time of the year that influences the flight cost, the days of the week also matter — Tuesday and Wednesday are the cheapest days to travel. The worst days to travel are Sundays in July and December — the prices are sky high.
5. Paying for subscriptions
Music and movie subscriptions are expensive. And often, device owners don’t even know that they are subscribed to something. If you notice that the same amount of money disappears from your bank account all the time, check to see if you have any subscriptions. But what if you want to watch movies and listen to music? Choose legal online movie and music services — they are charge-free and they earn money by showing ads to their users.
6. Not buying in bulk
Do you still think that only old ladies buy things in advance? Well, you are wrong. There is nothing bad about buying in bulk and in advance especially if it’s about things that can be stored for a long time.
The storage of necessary things like cereals, toilet paper, shampoo, and detergent will stop you from buying something you don’t need because you already have a lifetime supply at home. But keep in mind that stores often offer discounts for things that are low quality, so be careful.
7. Not using loyalty programs
Many companies offer their clientele discounts and bonuses. And it’s foolish to not use these loyalty programs. For example, airlines allow their clients to collect miles to pay for their tickets.
In order to not get lost having to carry and sort through dozens of loyalty cards, you can use a special app on your phone or tablet to keep them all in one place.
8. Not being able to haggle
In the East, they have a great tradition for everyone who likes buying things: customers and clients love bargaining. This is a kind of art and a great skill for people who love to save money. You can bargain anywhere — when buying an apartment, furniture, or even a device, there is always a chance to get a discount if you can negotiate the price. Don’t lose your chance to save some money. Sometimes, all it takes is just asking for a discount to get it.
9. Not asking close friends or family for advice before buying something big
A family is not just the close people who support you during difficult moments. Nobody can be as honest with you about your mistakes as your parents or your spouse. You should use this if you are planning a huge purchase you are not yet sure about. In any situation like this, discuss your plans with your family, who knows, maybe you will get a valuable piece of advice.
10. Spending money on cigarettes and alcohol
Smoking, alcohol, and fast food are not only bad for your health but also for your financial situation. Financial experts calculated that an average US citizen spends about $5 thousand a year on these things. Of course, fast food helps save the time but it is bad for your health and costs a lot more than ordinary food you could prepare yourself.
11. Buying clothes that don’t go together well with your other clothes
Bright shoes that you used only a couple of times or a super trendy handbag that is collecting dust in your closet will sooner or later destroy your financial balance. Especially if you often buy clothing that doesn’t go with the rest of your wardrobe. You should be honest about your financial situation and always buy clothing you can easily combine with what you already have.
Don’t underestimate websites where they sell used clothes. You don’t need to buy clothes there, but you can sell things you don’t need: you will make some extra money and have more space in your closet.
12. Buying coffee every morning
British scientists calculated that an average office employee spends $510 a year on coffee. Of course, the price of a cup of coffee differs a lot from city to city but one thing is certain: a lot of money is spent on coffee. Buy a cup that keeps the beverage hot and drink homemade coffee on your way to work. This will save you a lot of money.
13. Not having money by the end of the month
It’s still a week before you get paid and you already have to cut down on the amount of food you normally eat to last this long. If it’s about you, we have bad news for you: you are doing something wrong. If you just budget your money correctly, you won’t be in these situations. You should reconsider your behavior and exclude things you don’t need.
Please share your tips on saving money in the comment section below.