Are you one of those people who never has anything left in their bank account at the end of the month, or worse- are you overdrawn? Interestingly enough, your bad money habits may have nothing to do with your income, but with your lack of financial organization.
There are some people who earn six figures a year who have problems paying their mortgage at the end of the month, while others who make a fraction of their salaries have enough money left over for a luxury vacation.
The key lies in knowing what your bad spending habits are, and what changes you should be making. Here are some of the reasons you’re running low on money at the end of the month and how to change it.
Your Mortgage is Too High
A lot of people get into a loan that seems possible to pay off every month, yet they quickly realize that being a homeowner costs more than just mortgage. You’ll also need to cover utilities, homeowner dues, and unexpected repair expenses.
If you’re frequently running out of money or find it hard to pay your bills, it’s a good time to ask yourself whether it may be time to refinance your home. Once you have a manageable mortgage, you can start taking control of your finances and even putting away savings.
You Don’t Budget
It’s important that you have a plan for where your money should go each month. A budget is a way of setting boundaries for yourself, so you don’t overspend. Far too many people allow themselves to spend freely, only to find that after they’ve done so, they don’t have enough money for the things that really matter, like groceries and bills. Create a budget so you know how much you have left to cover bills.
You’re Eating And Drinking Out Too Much
People who are extremely social and like to eat and drink out several times a week are spending a significant amount of money on it. The average meal costs significantly more in a restaurant than what it would cost to make yourself.
If you can’t bear to stop being social and love your happy hours, then make a commitment to at least scale back. You’ll find you can save thousands!
You’re an Impulse Buyer
A lot of people can’t handle the temptation of a good deal. Al it takes is one email from their favorite online store advertising a sale to make them start frantically adding things they don’t need to their cart.
If you’re the kind of person that often buys on impulse, the only way to stop your bad habits is to eliminate your temptations. Unsubscribe for online store newsletters, or take another route home from work that won’t pass your favorite store. Out of sight is out of mind!