As unemployment begins to take a toll on us, now is the best time to save and regain control of our finances.

Having good financial habits doesn’t just happen; you have to work for it. habits are things that develop over time and with repetitive and consistent practice.

It should be a habit you should adopt all year long. Here are the top 5 habits that, if maintained, will lead you into dark and poor financial health.

financial health

Having No Budget

This might sound old-fashioned, but having a budget is essential if you want to have a healthy financial life. Always keep track of your expenses and check to be sure how you often you spend your money. Are you the kind of person who will receive a paycheck and immediately go out on a shopping spree? Well, this will only do you harm – and no good – in the long run.

Having No Shopping List

Raise your hand if you have ever gone out on a shopping spree after getting your paycheck. Well, you are not alone. Shopping makes people feel good and gives them a sense of satisfaction, but if left uncontrolled, it ends up becoming addictive. Before you spend your money on anything, ask yourself, do I need it or its because I have the money to spend? This will help you keep a budget and avoid going into debt.

Using Your Credit Card Daily

Well, using a credit card is not totally bad. If used responsibly, those points and miles will have a place in your purse. However, using your credit card every day might be a habit that is hard for you to pay back.

With this financial crisis, the last thing you want is a credit card that most people find hard to pay. Financial advisors usually encourage people to use credit cards only during emergencies and unavoidable circumstances. If it’s something you can do without, avoid using a credit card to purchase it.

Not Saving

This is one habit many people struggle with in their lives. The moment you receive your paycheck, allocate each fund and be sure to put savings aside. But in most cases, people will either overlook savings or end up using them thinking they will put it back. However, this rarely or never happens. If you do not have an emergency fund, it’s high time you created one, because you never know when that crisis will hit you.

If you are starting to save, start small, and build up as time goes by. To make it easier for you, set up an automatic transfer to your savings account. This will help you save money without putting in much effort.

Not Paying Bills on Time

Are you the kind of person who keeps procrastinating when it comes to paying your bills? Do you know how that affects your credit history? You need to understand what needs to be paid and when so that you can plan. Not doing so will only make you forget, thus making you go into more debt.

Conclusion

Bad financial habits will only lead you to more debts. The first step to coming out of this, of course, is realizing that these habits sabotage your financial freedom and finding a way to fix them. This, however, will not happen overnight. It will take time and patience. Check out the rest of our site for more financial tips and advice!