“I didn't see the color of money”, “I don't have a penny in my pocket”, these are some of the most well-known sayings said by people who claim to have no money for anything. The habits of those who live without money, however, are what lead to this imbalance in financial health.
This because, this profile has no discipline with finance, buys on impulse and does not control day-to-day spending. The consequence of this is an unbalanced life, financially speaking, which can lead to stress and negative impacts on personal and professional life.
According to a research the National Confederation of Shopkeepers (CNDL) and the Credit Protection Service (SPC Brasil) 67% of UK citizens admit they cannot save. 13% assume that the main reason for this is that they have lost control over their finances.
But what is the secret to achieving financial balance? In this article we will talk about:
- The importance of saving money;
- The secrets of financial management;
- The habits of those who live without money;
If you want to know how to spend less and consequently save more this article can help you.
Financial management: know what it is
O Financial Welfare Indicator 2021 showed that more than half of UK citizens, 60%, said they had no money left at the end of the month. Out of every ten people, seven do not have an emergency reserve should any unforeseen event arise.
This is mainly due to the lack of financial management and the habits of those who live without money and spend without thinking about the future.
Financial management, for those who do not know, is a set of actions that allows an analysis of gains and expenses. With it, it is possible to cut expenses, save and make assertive investments. It is a process of better money management.
The relationship between stress and financial problems
Data from a PwC study revealed that 53% of professionals say they are stressed and affected professionally by financial problems. The consequence is low productivity, constant errors and high absenteeism.
In addition, indebted people, 69%, say they suffer from anxiety disorder.
Many of them even assume they have low self-esteem and anguish for not having money. A good part of this scenario occurs due to the habits of those who live without money and even so, they are not concerned with their own financial health.
The main habits of those who live without money
Do you know what are the main habits of those who live without money? Below we made a list with 8 of them, giving tips on how to change these customs.
1. Impulse purchases
THE impulse purchase it is one of the main habits of those who live without money. In fact, this is a common practice on the part of UK citizens. The study My Happy Pocket showed that 52% of people make impulse purchases.
36%, 3, according to SPC Brasil and CNDL, admit that a purchase relieves stress. The big issue is that a thoughtless purchase can directly impact finances and compromise the budget, leaving people penniless.
2. Lack of discipline in financial management
The lack of habit or discipline are two main reasons pointed out by 18% of UK citizens as a justification for the lack of control of finances, indicates the SPC Brasil. Lack of money is often caused by uncontrolled spending.
Even because to save you need discipline, both to have the courage to cut unnecessary expenses and to follow a routine of saving money thinking about the future. For this reason, it is essential to financial management have a macro view of what you earn and what you spend.
3. Lack of organization and financial control
57% of the UK residents population it does not have any type of action or strategy to guarantee a safe future, pointed out CNDL and SPC Brasil. This occurs not only due to the lack of organization, but due to the habits of those who live without money, which does not allow for correct financial control.
Therefore, it is necessary to organize financially. Assuming that there is not only the present, but also the future. In other words, disorganizing yourself financially means not thinking about tomorrow and spending everything today.
This is a recurring habit of those who live without money. The big question is that life flies and the future is always closer than we think and not planning it can be a disaster years later.
4. Don't pay attention to day-to-day expenses
O SPC Brazil indicated that only 57% of UK citizens measure and control extra daily expenses such as food, leisure, buying assorted and so on. This lack of control in financial management is within the habits of those who live without money.
These so-called invisible expenditures, however, can be extremely harmful to financial health.
Since, they can commit the budget at the end of the month. In order not to compromise your money, it is necessary to write down everything you spend even to be able to make a more concrete analysis of the expenses.
Another important point that can help in this reality is always leave money aside for these expenditures if possible. Of course, prioritizing fixed expenses, savings and emergency reserve.
5. Being afraid to cut expenses
One of the habits of those who live without money that we can also highlight in this list is that of keep variable expenses for nothing. Many people pay for Netflix, Spotify, Amazon Prime, extra cable TV channels and countless other services they never use.
It may seem like a small expense to start with, but make a sum of each of these services to get a sense of how much you spend per month unnecessarily.
Let's suppose you have 5 of them and you pay R $ 30 on average each, in total it will be R $ 150.00 per month that you could have saved to pay fixed bills.
To change this reality, it is necessary to note these expenses and make an analysis of what you use and what you do not use.
From there, make the cuts in what is leaning against, useless in your day to day. Certainly at the end of the month these savings will give your finances more balance, preventing you from living without money.
6. Does not carry out price research
Do you do price research or go shopping because that store or market is closer? One of the most problematic habits of those who live without money is the lack of price research.
One recent survey by CNDL and SPC Brasil showed that 18% of consumers don't bother to research and compare prices before making a purchase.
The big problem with this is that they may end up paying more for certain products, compromising the monthly budget. Within financial management, price research is a mandatory routine.
Those who do not lose money and become financially unbalanced at some point. Therefore, before making any purchase, do a price search. Go to the stores' websites, visit the nearest markets and compare.
7. Lack of knowledge
Many habits of those who live without money are a consequence of the lack of knowledge in the area of finance. So much that 19% of people say they do not pay attention to issues involving numbersaccording to SPC Brazil and CNDL.
Because they think that financial management and mathematics itself are complicated issues, many end up leaving it aside and do not even bother to look for a training, even for beginners.
The problem is that it becomes impossible to effectively control money itself. Therefore, acquiring knowledge in the field can help to save, save and control economies so that you do not always live without money.
The internet offers several financial management courses, many of them free, for those who want to know how to manage their earnings and expenses in the right way. Here on the blog we already gave tips on financial management courses and you can check clicking here.
8. Uncontrolled use of credit card
THE Consumer Debt and Default Survey revealed that credit card is the main debt factor for 78% of UK residents families. The uncontrolled use of it, in fact, is one of the habits of those who live without money.
Installment purchases give the illusion that small installments are easily paid, but the correct thing is to analyze the payment as a whole and how much this monthly amount will compromise your budget.
Because, if there are delays in payment of the card you will have to pay very high interest and this “unexpected” can turn into a snowball over time.
Another point to pay attention to is the payment of the minimum installment, which only increases the debt month by month. Being able to generate a complete lack of control of the finances and bringing a scenario where the person lives without money.
Change your habits today
Are any of the habits of those who live without money part of their reality? Well, know that there is always time to change. Start by doing an analysis of your earnings and expenses. It's fundamental have a broad view about it and then make the necessary cuts.
In addition, to change these habits of those who live without money, it is necessary to rethink their attitude. Only you are able to change the direction of your finances. However, only concrete attitudes, with commitment and discipline, can bring this new reality into your daily life.
Pay more attention to the future and don't just think about spending everything you have in the present because that money may be needed up front. Do not want to live always tight, financially speaking, every month.
But if that reality knocked on your door, this article showed how it is possible to change from small adjustments in your routine.
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