Some of us have that relative or friend who is always complaining about finances and often asking for a raise. These people have sources of income, but it seems like they have the longest list of bills to cater for. In some instances, many of the ‘pipes’ draining their resources are just frivolities; which can be avoided. We often try to avoid them, because they keep asking for loans they may not pay back.
Yes, due to the economic situation, our incomes can only get us fewer things than it used to, but this calls for stricter measures and greater level of discipline. To avoid making enemies out of our kinsmen, here are some habits of perpetually broke people to consider in our financial planning:
Trying to Measure Up
Among our friends, relatives, colleagues, we want to look the best and have the best. The temptation to be carried away by their outward appearance, without considering how they achieve their lifestyle is high. You want to attend all the parties with them, wear the expensive collective attires, aso-ebi and so on. Trying to match and beat them in terms of possessions is a futile chase that could hurt you financially.
Binge spending/Impulse spending
Having a budget and sticking to it is one of the foundations of financial improvement for anybody or organization. While some unexpected expenses may creep in once in a while, buying things just because we feel like really does more harm than good to our finances. If the item is not in the budget in the first place, it is likely to be a luxury you can ill afford at that moment (except in emergencies), and more often than not, they are things you don’t really need. Binge spending is likely to leave you with a lot of unwanted goods, and a low credit balance.
Failure to have a plan
Nothing meaningful can be achieved without a sense of purpose. It is important to know what the goal is, and more important to device a plan on how to achieve that goal. Probably most important, though, is the actual and timely implementation of that plan. If any of these steps are delayed, financial improvement may be delayed as well.
It’s good to be charitable, to help people out and all that. However, as with all things, when this becomes uncontrolled, you may find out that you work hard, earn more but have less. An elderly man once said “Only lend a person the amount you know you can gift the person” Why? Borrowed funds may never come back. What is more, those that you borrow have an invisible network you don’t know about. You’ll suddenly become a cash machine for them.
Life is not a bed of roses; and when the thorns come, they can cause deep wounds financially. The culture of saving is not entirely popular in Nigeria. However, if you are going to have any way forwards, you must make sure that you develop this culture. These savings are what will help you stay afloat when the tide turns. Similarly, savings help in achieving goals which leads to progress.
Lack Financial Literacy
Now, we are not talking of having an MBA in Banking and Finance. This is simple like being able to separate your profits from earnings, developing a budget, creating a scale of preference etc. If you cannot do those tasks fairly easily, you are likely to be stuck in the same position for a long time.
Culled from Nairametrics