Personal development is something that everybody should try and pursue in their lives. This broad niche can be subdivided into plenty of different areas, but for the purposes of this post, we will be focusing on your financial life.
This is an area that can cause a lot of stress and problems for millions of people, but by identifying some areas to monitor, you can start to find your way back to being in a financially healthy position.
We’ve looked at some spending habits that can prove to be highly detrimental to your financial health within this article, but by becoming aware of these habits, you can start to tackle them. Needless to say, not all of these areas will apply to you, but if they do, please read the categories closely!
Okay, let’s dive in and start looking at how you can set yourself up for a financially healthier life.
Spending on gambling
You might not have thought it, but overspending on gambling can be one of the most common causes of financial difficulties for people. If you take the UK as a prime example, the average person spends £2.60 per week on gambling, which adds up to more than £135 each year. Of course, since this is an average, there will be people who spend nothing and people who spend far more than this.
But if you are on the side of the chart who spends much more than this on gambling, this can be a surefire way to run into financial problems.
Online gambling on sites like Playigo.com should always be fun, and by gambling within your means, this behaviour can absolutely be controlled. However, in order to monitor it and take back control, we would encourage you to keep a weekly log on how much you have spent. If things get a little out of control, it may even be worth ‘self-excluding’ so that you literally cannot spend money with online betting for a set period of time.
Spending on eating out
Isn’t it just easy to eat out rather than buying in your groceries and cooking them for lunch and dinner? Yes, of course, it is easier, but it isn’t very good for your financial health. In fact, studies show that it is as much as 50% cheaper to buy your groceries and cook at home rather than eating out all the time. In the USA for example, a typical family will spend roughly $245 per week if they buy food and cook at home. This figure is then doubled if they were to eat out!
Whether you have a family or not, the spending difference will be the same. If you are an individual, you can save up to 50% more money by simply buying your groceries. Just imagine if you set that money aside and put it into your savings or even investments. And when you consider the fact that there are 52 weeks in every single year, this can amount to a huge difference over time.
Control of monthly liabilities
A liability just means something that takes money from you rather than brings you in any money. For example, a phone plan, car lease, and even rent would be construed as a liability. Simply put, the fewer liabilities you have, the better your financial health is going to be.
Of course, essentials such as rent and weekly groceries are unavoidable, but you can be clever with it and reduce the amount that you spend on such essentials. You could get a roommate and start shopping at discount stores, for example.
Just to reiterate, the fewer liabilities you have the better off you are going to be. Just think – do you really need that fancy gym membership, the latest phone, or a new car every few years?
Personal finance is something that can cause a lot of pain for people, yet if you are able to get control of your money, your life will be much easier. These three categories are just some of the habits/behaviours that you need to control if you want to strive towards a healthy financial life, but everyone’s circumstances are naturally different. Take the time to check out your financial life today, and we assure you, you’ll be thankful that you did it in the future.