You would think a list like this would be easy to make but trying to rank these financial habits in order of importance was a lot harder than I thought. Any of these habits will put you in the “House of Pain” (Thank you, Jim Cramer). You will find that some of these habits are simply commonsense while others are not so evident. So here is my countdown list of the Top 10 Worst Financial Habits:
10. Not Rewarding Yourself for Saving - What is the sense in saving if you never see the benefit in it? No one is saying you should blow all the money, but get yourself a new book, video game or whatever entertains you as a reward periodically. You have attained a respectable goal!
9. Not Protecting your Identity - Checking your credit report is not enough. Be wary of who you give your personal information too. More than likely it’s not a matter of if , but when your identity will be stolen. Investing in a program like LifeLock may save you a lot of headaches in the future.
8. Too many Credit Cards - If you have a credit card for every store you shop, you are working against yourself. This is a proven way to get in over your head at warp-speed. One credit card should be enough for all your needs, two at the most.
7. Taking advice from experts - Never take another person’s experience as infallible. The world of finance is a constantly changing one; fust because some blow hard of Fox News or CNBC tells you the market is about to turn around doesn’t mean it will and vice versa. No one cares about your money as much as you do!
6. Missing Payments - It’s one thing to not have the money to pay; it’s another to forget to pay. Dumb, Dumb and Dumb!
5. Head in the Sand - This is a personal favorite, because it seems like I speak to someone daily who just wants to argue about how everything and everyone is against them. If your debt is really uncontrollable, stop looking to run and ignore your responsibility. You’ll find that once you start to face your issues they are not as bad as you first thought.
4.Failing to plan for Retirement - The word retirement is not one of my favorites. Personally, I think you are going to see less and less “retired” people in the future and this is not because of some New Age “Fountain of Youth” crap but because people just plain refuse to plan for it. Your 401(k) or IRA might not be enough.
3. Living Paycheck to Paycheck - I’m as guilty as anyone when comes to this. The problem is you’re playing Russian Roulette. One little life curve ball and your cars are being repossessed and your home is foreclosed. It happens all too often.
2. Blaming the Economy - Yes, losing your job is a severe hardship, no one can ever doubt that. However, if you planned carefully you should be able to survive and maintain your lifestyle for 6 months at the very least. Obviously, the more money you make the easier it should be for you to save but, like anything else it is all too easy to say, putting the plan into action take real dedication.
1. Living Beyond your Means – I wish MTV Cribs would do a reunion show to see all of these famous people’s homes 10 years later. I would guess that a vast majority will be much more downsized and much less extravagant. Look at MC Hammer and Ed McMahon, they are now regulated to “Cash 4 Gold” commercials.
Just by looking down this list I’m guilty of at least 8 of these habits at one time or another. What about you? How would you rank these? What would you add to the list?
7 Comments until now.
I like this post….teaching us in reverse.
Elyong’s last blog post..Valentines Day: Nothing Has Change
I’m a dumb dumb. Yes, I’ll admit it. I forget to make payments on my credit card on time, but never so late that it shows up on my credit. In fact, my credit card company has repeatedly lowered my interest rate.
Jennifer @ Money Saver 101’s last blog post..Discount & Free Prescriptions at RxAssist.org
You mean “relegated”, not “regulated”.
I would amend #8 to include not carrying a revolving balance. There is no reason not to strive for and obtain a cash-only lifrstyle. I agree that one credit card is fine, but it really should be paid in full every month. There are better ways to build credit worthiness than a revolving credit line.
I have three credit cards, but that’s because I’m a Canadian currently living in the U.S., so I have just received a U.S. card in addition to my two from Canada. Having the extra helps me build credit here, but will also be for emergencies (until my dividend cashflow becomes large enough). I plan to retire one of the other cards while I’m here.
MoneyEnergy’s last blog post..My February 2009 accomplishments
I practiced number 5 for quite some time and am still paying for it. If I could do it all over again, knowing what I know now, I would probably do things differently.
Oh well – it is what it is!
Matt @ My Financial Recovery’s last blog post..Would You Rather Pay Down And Use A Credit Card Or Pay With Cash?
I’m guilty of a lot of those to be honest. When you’re spending it doesn’t really seem like that much. Then, at the end of the month all of your pay goes on your bills and you have to take out more credit to pay for everyday things, getting deeper and deeper in debt.
I’ve buried my head in the sand before and it’s so not the best way to go, because things turn out even worse.
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