Poor Financial Habits You Could Easily Inherit From Your Parents

There are a lot of things that you might inherit from your parents. For instance, you might have your Mom’s eyes or your Dad’s hair color. I’m sure that you will be very happy with the various physical and personality traits that they pass onto you. However, there could be a few bad habits that you pick up from them too. Unfortunately, some of these bad habits might be to do with your money management and could lead you to make some poor financial decisions. You might even inherit some of these without even realizing it!

Carolina Heza 
Here are some of the common poor financial habits we pick up from our parents – make sure you try to break these habits once and for all!

 

Impulsive Spending

If your parents were impulsive spenders and used to flash the cash without even thinking about it, then there is a good chance that you will do this as well. After all, it might have been all that you knew as you were growing up. Even though this may seem normal to you, it’s still important to try and get all of this spending under control. It could push you over budget each month, which could make it ever so easy to spiral into debt.

 

Taking On Too Much Debt

There isn’t too much wrong with taking on small amounts of debt as long as you are 100% sure that you can always pay back the monthly repayments. If you are ever unable to pay back the debt, you could get into a lot of trouble with the lenders, and this may lead to your home or valuable possessions being repossessed by the likes of repossessions-uk.com. So, always be very careful with debt and only get into it when you have tried all your other options.

Burying Your Head In The Sand

Some parents might ignore their money worries in the hope that they will blow over before too long. Sadly, though, this rarely occurs. It’s more likely that the worries and troubles will become more problematic, and you might end up with a very urgent problem on your hands. Thankfully, though, there are lots of ways to fix your money issues. One solution is to use a site like repair.credit to start fixing your credit report. A financial advisor can always help you start a debt repayment plan. Just remember that it’s always important to take action before it’s too late.

Not Being Open About Money

Lots of families also find it hard to discuss money management with each other. If this was the case with your parents, and they rarely spoke to one another about their finances, you need to change this in your own adult life. Be open and honest with your partner so that you can always help each other when managing your budget and finances becomes tricky.

Hopefully, you don’t pick up many of these bad habits from your parents. But don’t worry if you do, though – most of them are very easy to shake off!

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How To Audit Your Financial Life

Money can seem complicated. But in reality, it’s only ever as complicated as you make it. It may not feel like it, but you will always find that you can improve your situation, no matter what it looks like now. When you firmly believe that you’re stuck and that you’ll never get to where you’ll be, this is just something in your mind. So you need to shake that off, really get to grips with your situation and start to turn things around. The best way to do that is to be really objective with yourself. Even if, right now, your situation isn’t that bad, you can really make a change and improve things going forward. And if you have big dreams, then this is something that you’ll really want to do.

Cathryn Lavery
But what’s the best way to go about it? Because you know roughly where you are now, and you know where you want to be, but how do you make that leap? This is what the audit will help you with. It’s going to help you to break down your current situation and really figure out what changes you need to make in order to get to where you want to be. And there are always changes that can be made. So let’s see what they are.

 

  1. Set Some Goals

 

When it comes to doing anything in life, you need direction. So when you’re looking to make changes to your financial life, you need to have goals. So start out your financial audit by having a vision of what you want to achieve. Whether you want to buy your first home, launch a business, or just build up some firm savings, these goals are essential. Maybe you even want to transform your lifestyle? When this is the case, putting those goals in place is the first step for helping you to do it.

 

  1. Break Down Your Pros

 

The next step is to begin the audit of how you are right now. And to do this, you really have to be objective with yourself. You need to make sure that you can highlight the strengths that you have. Maybe you spend within your means? Maybe you’ve created a savings account? Maybe you earn well? Whatever it is, make sure you’re aware of any positive things about your current situation.

 

  1. Understand Your Cons

 

Next, we have the hardest part to do. Because you have to be able to understand your flaws and your weaknesses if you’re going to turn things around. And to do this, you have to be quite tough on yourself. Be honest and work what’s letting your current financial situation down. Maybe you’re in a lot of debt? Maybe you can’t control your spending? Maybe you earn pittance? No matter what it is, work it out, and own it.

 

  1. Budget Better

 

Now that you are more than aware of how you’re doing, it’s time to budget. By building a better budget, you will be able to take control of your earnings. You’ll find that you can start to really allocate your funds in the most cost-effective way. You’ll often reduce unnecessary payments that you make and start to get smarter with how you view your money.

 

  1. Spend Smarter

 

From here, you then need to be able to make your purchases count. Start by switching your bills to better deals. Use sites such as moneypug to find them. When you can save money on your bills, you’ve made the best start. Then, you’ll want to cut out expenses that you don’t need altogether. This is going to help you to free up cash for your financial goals.

 

  1. Home In On Your Earnings

 

When you’ve got a better grasp over your outgoings and you’re really starting to control them, you then need to do the same with your income. Ideally, you’re going to want to increase your earnings. The best way to do that is to work on getting a raise, go out for more work, or to even diversify your income by adding an automated stream.

 

  1. Keep Everything In Line

 

Finally, you then need to make sure that everything matches up going forward. The decisions you’re making with regard to your money have to link to your goals. Essentially, your actions have to match your ambitions. So be sure that everything you do, every time you spend, and your attitude towards your financial situation all mirrors those original goals that you set out.

Four Ways To Boost Your Finances For The Future

If we are all honest with one another, I think we would all like to improve our finances in some way. Have some extra each month to save for the future, maybe feel like we can afford those holidays we would like to take or just treat ourselves to some little luxuries. However, many people are on fixed incomes and feel they have no option. But, you do. I thought I would share with you some of the ways that you could boost your finances.

pina messina

Make solid investments in stock and shares

Investing in stocks and shares may sound scary, and of course, there is an element of risk to it, but actually these sorts of investments can really pay off. It takes a little bit of research beforehand, and looking for the right trading platform like td ameritrade to give you the right software to do it, but once you feel you have the knowledge it could really pay off. Investing in stocks and shares can be seen as more of a long term thing, and it is always advisable to keep an eye on things so you know when the right time to sell is.

 

Take a look at your current outgoings

Sometimes starting a little more closer to home is the way forward and your current outgoings could be the way forward. We all have bills to pay and commitments to meet each month, but are you paying the least amount you can be for them? This is when you need to consider reducing your outgoings by getting cheaper quotes for things like energy and insurance Switching providers can potentially save you a lot. The food bill could also be reduced with a  change of habits such as meal planning and changing the store that you shop in.

 

Get on the property ladder

Another thing to think about would be to get on the property ladder. Getting on the property ladder is a real investment for the future. The value tends to increase over time which means that you can really set yourself up for the future. Many people look to get on the property ladder, and then move up and increase the potential by investing in bigger properties. It may feel like a big ask right now, but once you take that step, you are on the ladder and you can then move forward and increase your future value.

 

Increase your earning potential

Finally, why not look at ways to increase your earning potential? You don’t need to stick with what you earn each month, you can look at ways at increasing it. One obvious option would be to look for a pay rise or to go for a new job with higher earning potential. If that isn’t an option then you can look at ways at home to increase your earnings. It might be that you could sell unwanted items on eBay, or start a business from home in your spare time.

I hope that these options help you to boost your finances.

 

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