Behaviours that threaten your financial security
Spending patterns and money habits are often understood over time. This means that your experience with money in the past have an influence on your current as well as your future financial decisions. So, if you want to ditch poor money mindsets and ensure you're not deteriorating your financial health, you need to check on these financial behaviours which may pose a threat to your financial security.
Impulsive purchases
This is one of the common behaviours among people. Usually, most of the brands around the world take advantage of your impulsive behaviour and design products or advertisements which trigger your impulsive behaviour and you ought to fall prey to such stuff. However, it is also in your hand to make a habit of waiting for some time and giving a thought as to whether the product is necessary for you or not. This will surely help you to reduce such impulsive purchases which may pose a threat to your financial security.
Delay in savings
It is always better to defer some of the not so necessary expenses and rather save. However, people do exactly the opposite of it. They give importance to not so necessary purchases and often delay savings. This behaviour may lead to low savings for your necessary financial goals such as child’s education and your retirement. This in a way is directly hampering your financial security. So, in such cases, it is always prudent to first save and then spend. Also, automating savings would eventually help to inculcate a habit of saving first.
Digging deep into debt
Debt is something which has enabled people to use the money they have not earned or are yet to earn. However, people often forget they are forgoing their future income to that extent. Though the use of debt is not bad as you may have to purchase something which is a necessity to you or in case of emergencies when you don’t have enough cash. However, these days people are so used to debt that they even buy a cup of coffee on credit. Such impulsive purchases also become a tool to drag int a debt trap which in turn results into lower savings and may hamper your financial security. It is not bad to use credit, but the way in which you choose to use it may be wrong.