When it comes to personal finance, there are a lot of things you probably know you should be doing but often don’t. It’s not uncommon to find people who are putting their future at risk because they aren’t acting on the knowledge they have. Financial behavior is a big part of that. The way you handle your money says a lot about who you are as a person and whether or not you value your future self. Here are some telling signs your financial behavior might need an intervention…
Table of Contents
- You’re constantly in a state of “catching up”.
- You don’t have an emergency fund.
- How to change your financial behavior
- You buy things you don’t need, and you know it.
- Bottom line
You’re constantly in a state of “catching up”.
If you regularly find yourself “catching up” with bills, to-do items, or even social obligations, your financial behavior might be the issue. If you find yourself always behind on something, you might be spending too much and not leaving yourself enough time to get everything done. There’s nothing wrong with working hard and prioritizing your bills, but if you’re always in a rush to get your obligations taken care of, you could be spending too much. Getting your financial behavior under control will give you more time to do everything else in your life.
You don’t have an emergency fund.
If you don’t have an emergency fund, your financial behavior is telling you that you don’t value your future self enough to ensure their safety. Having an emergency fund isn’t just about having a little extra cash for an earthquake or car accident. It’s about being prepared for the unforeseeable. An emergency fund is a simple way to protect the future you. Having one stashed away will allow you to take care of any financial issues that may pop up without having to borrow money or put yourself in debt.
How to change your financial behavior
One of the best ways to change your financial behavior is to start budgeting. Budgeting is a simple tool that will help you track your expenses and see where your money is going every month. You can find budgeting apps online to help you get started and stay on track. Another great way to improve your financial behavior is to start tracking your net worth. Net worth is your assets minus your debt. Tracking your net worth is a way to track your financial progress over time and will let you know if your behavior is improving.
You buy things you don’t need, and you know it.
There’s a quick way to find out if your financial behavior is self-destructive: when you buy something you don’t need, you know it. If you find yourself buying things you don’t need, your financial behavior is telling you that you’re being impulsive and that you don’t value your future self enough to reel in the impulses. Impulsivity is one of the biggest financial vices you can have. It will lead you to make purchases you don’t need and likely can’t afford.
Your financial behavior says a lot about who you are as a person and whether or not you value your future self. If your financial behavior falls into any of these categories, it may be time to make a change. Start budgeting, tracking your net worth, and reigning in your impulsive tendencies to improve your financial behavior and your financial future. Are you guilty of any of these financial behavior faux pas? If so, there’s no time like the present to change your ways. Your future self will thank you for it!