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'Normal' Money Habits That Affect Your Financial Wellness 🧐
Are you turning a blind eye to 'normal' money mistakes? We explore how seemingly harmless everyday money habits could be impacting your wallet negatively. 🔍
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Greetings, and welcome to the twenty-first edition of Wallet Wellness in 2024 - your midweek source of practical financial tips to elevate your money management skills!
We hope you had a chance to check out the last edition, where we discussed the abundance mindset, what it is and how it affects your wallet. In today’s edition, we explore habits that we deem ‘normal’ but are detrimental to our financial well-being.
As always, be sure to check out the Concept Corner below for a deep dive into the money concept of the week.
Let’s dive in!
This week’s Wallet Wellness is brought to you by mTek
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Read more about how it all works or download the mTek app to shop for the best car, health or life insurance rates in the market.
MONEY254 TIP OF THE WEEK
'Normal' Money Habits That Affect Your Financial Wellness 🧐
The fact that something is commonly practised or widely accepted in society does not make it beneficial for your financial well-being. In fact, many 'normal' money habits can actually be detrimental to your financial well-being and progress.
While some may seem harmless, like the occasional splurge, or delaying in making a move on your investment plans, they can quietly impact your financial wellness.
Today, let's uncover these habits, understand their implications, and provide actionable tips to steer your financial journey toward stability and success.
1. Impulse Buying 🛒🏃🏿♀️
This is making unplanned purchases on a whim, often driven by emotions or falling for the allure of attractive deals. Read On.
Why It Matters: This habit can quickly deplete your financial resources, leaving less money for essentials, savings, and investments. Read More.
What to Do: Set a Budget: Make a shopping list, and implement a 24-hour waiting period before making non-essential purchases. This helps ensure that your spending is intentional and within your means. Learn More.
2. Investment Hesitation 🤔
This is the reluctance to invest due to fear of losing money or lack of knowledge about investment options.
Why It Matters: Avoiding investments can hinder your financial growth, as keeping your money only in savings accounts makes it vulnerable to inflation. Easy access to your savings means you may keep dipping into it at the expense of long-term security. Learn More.
What to Do: Educate Yourself on Different Investment Options. Start with small investments, and consider seeking advice from a financial advisor to build your ability to make confident investment decisions. Read More.
Starting early allows your money to benefit from compound interest over time.
3. Neglecting Insurance 🛡️
This is failing to obtain or maintain adequate insurance coverage for health, auto, home, or life.
Why It Matters: While most people overlook this, without proper insurance, you risk facing significant financial hardship in the event of an emergency, such as a medical issue, car accident, income loss or property damage. Read More.
What to Do: Review Your Insurance Needs. Ensure you have the necessary coverage in place or come up with a plan to achieve this progressively.
Regularly update your coverage to reflect changes in your life and protect your assets effectively. Read More.
4. Failing to Balance “Enjoyment” with Long-Term Planning ⚖️
This involves prioritising short-term pleasures over long-term financial goals, such as investments and retirement planning. Read More.
Why It Matters: Overemphasising immediate gratification can lead to insufficient savings for future needs, potentially compromising your financial security and ability to retire comfortably. Read More.
What to Do: Create a Balanced Budget that allocates funds for both “enjoyment” and future planning. Set aside a portion of your income for fun activities while ensuring regular contributions to your savings and investment accounts.
This balance helps you enjoy the present without sacrificing future financial stability.
5. Ignoring Financial Education 📚
This means neglecting to learn about personal finance, including topics like budgeting, investing, and managing debt.
Why It Matters: Financial education is crucial for making informed decisions about money. Without it, you may struggle to manage your finances effectively, leading to debt, missed investment opportunities, and insufficient savings for the future. Read More.
What to Do: Start by reading books, articles, and reputable websites about personal finance. This foundational knowledge will empower you to make better financial decisions.
Seek Guidance: Consider seeking advice from financial professionals for complex financial matters. You can also seek a money buddy with whom you can learn about money together and keep each other accountable. Learn More.
It's time to rethink the 'normal' money habits that slowly (but surely) sabotage our financial well-being. Recognising and addressing these behaviours can transform your financial future from uncertain to more secure.
Imagine a life where your financial choices empower you, allowing you to enjoy the present while confidently planning for the future.
By making small, intentional changes today, you pave the way for a stable, prosperous tomorrow. It's time to redefine "normal" and empower yourself for a brighter financial future! 🌟
CONCEPT CORNER
Sinking Fund
A sinking fund is a financial planning tool that involves regularly setting aside money over a period of time to prepare for a specific future large expense or financial obligation.
By gradually accumulating funds, this strategy aims to reduce the need for borrowing when the expense is due, promoting financial stability. Read more.
Money and Me
“At 40, I Have Enough for Retirement”
“For me, the perfect day is the day I sleep without an alarm, wake up without rushing, have breakfast then go out to check on my livestock or plants. In the afternoon I can binge on a book while watching the sunset. I can now live my dream, I do not need to keep running in the hamster wheel... Read more.
MONEY254 #MONEYTOK
Have Fun on a Budget
Would you believe that there is a way to enjoy yourself to the fullest without necessarily getting into a splurge? In today’s MoneyTok, we explore how to manage your entertainment budget.
Watch The Video and check out this Budget 101 Article that outlines what to include in your budget.
@money254hq 𝐇𝐨𝐰 𝐭𝐨 𝐑𝐞𝐝𝐮𝐜𝐞 𝐘𝐨𝐮𝐫 𝐄𝐧𝐭𝐞𝐫𝐭𝐚𝐢𝐧𝐦𝐞𝐧𝐭 𝐁𝐮𝐝𝐠𝐞𝐭 #Money254 #Money #Budget #Personalfinance #moneymanagement #financialfreedom #fypp #fyp
That's it for the twenty-first Wallet Wellness edition of 2024! We hope these financial tips have added some energy to your mid-week hustle. Stay tuned for more practical insights in our next edition of "Wallet Wellness" next week and watch out for Money Weekly on your inbox this Friday.
Also, don’t forget to download the Money254 App on the Google Play Store, and remember that we can help you compare over 300 loans, savings accounts, current accounts, and more if you’re thinking about your next product.
Cheers to your wallet's well-being!
Money254 editorial team.
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