If you want to be truly financially successful, say goodbye to these 10 behaviors
Financial success isn’t merely about accumulating wealth; it’s about nurturing habits that foster prosperity. However, certain behaviors can impede this journey toward financial growth.
These behaviors act as hidden obstacles, lurking beneath the surface and potentially sabotaging your efforts to accumulate wealth without your awareness.
So, if you’re committed to achieving financial success, it’s essential to bid farewell to these ten detrimental behaviors. Let me outline them for you.
But remember, identifying them is just the beginning—the true challenge lies in breaking free from their grip.
1) Mindless spending
One of the major obstacles to financial success is mindless spending. It’s akin to having a small leak in your wallet that gradually siphons away your funds.
Mindless spending is exactly what it sounds like: purchasing items without much consideration for their impact on your finances. It’s those routine visits to the coffee shop, impromptu online buys, or indulging in the “treat yourself” mentality a bit too frequently.
When striving for your financial objectives, every cent matters. Before making a purchase, take a moment to ponder whether it’s truly essential or simply a desire.
Keep in mind that every unnecessary expense translates to less money available for saving or investing in your future.
2) Ignoring the budget
Now, I’m not exempt from this. I’ve been in that boat too. For the longest time, the idea of budgeting seemed foreign to me. I saw it as unnecessary, confining, and frankly, a bit of a buzzkill.
I vividly recall my first attempt at creating a budget. It was daunting and felt like an uphill battle. Seeing where my money was actually going was eye-opening. Most of my income was being spent on things that didn’t really matter or contribute to my financial well-being.
Adhering to a budget initially felt challenging. The temptation to splurge on non-essentials was strong. But as I stayed dedicated to my budget, I began to notice a change in my financial situation. Gradually, my savings grew, and my debts decreased.
Ignoring the budget is a habit many of us fall into, myself included. However, if you truly aspire to financial success, it’s time to bid farewell to this habit. Believe me, your future self will thank you for it.
3) Living on credit
Credit cards can be a double-edged sword. While they offer convenience and perks, they can also lure us into a dangerous cycle of debt if not handled with care.
In 2023, Americans collectively racked up over $1 trillion in credit card debt, as reported by the Federal Reserve Bank of New York. These figures underscore how easily one can fall into the trap of relying on credit.
Living beyond our means through credit creates a false sense of financial security. It tricks us into believing we have more than we actually do, leading to reckless spending habits.
To attain genuine financial success, it’s imperative to break free from the grip of credit card dependency. Make paying off outstanding balances a priority and commit to living within your means.
4) Neglecting to save
Saving money might not always be the most thrilling part of managing your finances, but it’s definitely one of the most important. Still, many of us are guilty of putting it off.
We often convince ourselves that we’ll start saving once we make more money, clear our debts, or hit a certain age milestone. But the reality is, there’s never a perfect moment to begin, and the right time is always now.
By putting aside a portion of your income each month, you’re not just creating a safety cushion for unexpected costs, but also laying the groundwork for financial independence.
5) Avoiding financial education
Lacking knowledge in finance can lead to making decisions that negatively impact your financial health.
Many people steer clear of learning about finance, thinking it’s too complicated or dull. However, the truth is, having a basic understanding of finances is crucial for making wise choices about saving, investing, and managing debt.
There are countless resources out there—books, online courses, podcasts, and blogs—that can help you grasp the essentials of finance and navigate your financial journey with confidence.
Remember, knowledge is power—especially when it comes to your finances.
6) Fearing financial risks
Risk is a natural part of life, especially in finances. But fearing risk can hold us back from opportunities that lead to significant financial growth.
Playing it safe with your finances might feel comfortable, but it often leads to stagnation. On the flip side, taking calculated risks—like investing in the stock market or starting a business—can open doors to new possibilities and greater wealth.
Sure, losing money can be scary. But every successful investor or entrepreneur has faced setbacks. What matters is learning from them and bouncing back stronger.
7) Waiting for the “perfect” time to invest
When I first started earning, I kept telling myself that I’d dive into investing once I had a substantial amount saved up. I thought I needed a big sum to make any real impact. But boy, was I mistaken.
The reality is, there’s no such thing as a “perfect” time to start investing. The earlier you dive in, the more time your money has to flourish. Even small amounts can snowball into significant returns over time, all thanks to the magic of compound interest.
So if you’re holding out for the ideal moment or waiting until you’ve amassed a hefty sum, it’s time to hit the brakes.
Start with whatever you’ve got. Even a modest monthly investment can snowball into something substantial down the road.
8) Chasing after quick riches
In the world of finances, the appeal of get-rich-quick schemes can be hard to resist. We often hear stories of people making a fortune overnight and it’s tempting to try and replicate their success.
However, true financial success is rarely achieved overnight. It’s usually the result of consistent efforts, smart choices, and above all, patience.
While it might seem like the slower path to wealth, adopting a long-term perspective towards your finances can lead to more sustainable and lasting financial success. It’s about building wealth gradually, not chasing after windfalls.
9) Neglecting insurance
Insurance might come across as an unnecessary expense, particularly when you’re young and healthy. But life’s twists and turns can catch you off guard, and lacking adequate coverage can spell financial disaster when the unexpected strikes.
Whether it’s health, life, or property insurance, having the right coverage is a fundamental aspect of financial planning.
It’s about shielding your finances from potential risks and guaranteeing protection for yourself and your loved ones in the event of unforeseen circumstances.
To stride confidently toward financial success, familiarize yourself with insurance options. Hey, it’s far wiser to have insurance and not need it than to need it and not have it.
10) Failing to set financial goals
Financial success isn’t something that just falls into your lap; it’s all about planning and setting goals. Without clear financial targets, it’s like sailing without a map.
Having financial goals gives you direction. It helps you figure out where to spend your money, what investments to make, and keeps you on track toward your version of financial success.
And here’s the thing: it’s never too early to start. Never forget, a goal without a plan is just a wish. So, why keep wishing when you can start planning?
It’s all about choices
Financial success is deeply tied to the choices and habits we cultivate. It’s not only about what we earn, but also how we manage, save, and invest our money.
The behaviors we’ve talked about aren’t inherently bad; they only become problematic when they overshadow financially beneficial habits. The key is recognizing these behaviors and actively choosing to let them go.
Financial success doesn’t happen overnight. It’s a journey of consistent, small steps towards better financial habits and decisions.
– by Ethan Sterling – Geediting