Generally, the problem is that most people lack a good understanding of just how important saving for the future is. Most people are going to do everything else with their money first before they even think about saving.
For most of us, our financial habits were picked up early on from watching and learning from our parents as we were growing up.
If you were lucky enough to have financially savvy parents to guide you, managing your finances probably comes easily to you and is second nature. For many of us, though, myself included, making smart financial decisions has been a process that we’ve learned by way of trial and error — just as our parents before us.
In my case, my parents were simply repeating the cycle and following the financial habits they learned from their parents, which were most likely learned from their parents before them.
So, how do you break the cycle of bad financial habits? I’ll be the first to admit, breaking habits is not easy. It takes time, commitment and a strong desire to want to make the change. If you’re serious about changing your financial habits, here are a few tips and guidelines that may help.
Identifying Bad Habits
This sounds obvious, but if you aren’t aware of what you’re doing wrong, it’s difficult to change it. If you have financial issues, take a step back and analyze your finances. What’s causing you the most trouble? Are you buried in debt? Relying on credit cards to pay for things you can’t afford? Living beyond your means? Not saving enough?