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Eliminate these 5 financial habits to build wealth

Eliminate these 5 financial habits to build wealth What financial habits prevent you from getting rich (photo: Freepik)

Even daily minor expenses should be tracked to understand how to properly manage your budget. Otherwise, if you ignore basic financial literacy, you will never become wealthy. BVR Ukraine discusses which financial habits should be eliminated right now.

Not creating a financial plan

If you don't create a financial plan for long-term and everyday goals, it leads to impulsive purchases and emotional spending. Experts advise dividing your earnings into:

  • mandatory expenses
  • emergency fund
  • major purchases
  • entertainment and hobbies
  • development and investments

Spending money impulsively

Before making a purchase, ask yourself, "Does this item divert me from my overall financial goal?" Answering this question requires honesty with oneself.

Not saving money

Come up with small and big financial dreams for yourself. Set aside even small amounts regularly. You can use banking services that offer savings programs, such as rounding up expenditures to 10 or 100 hryvnias. For example, if you paid 8 hryvnias for transportation, 2 hryvnias will automatically be transferred to your savings.

Improving mood with shopping

Shopping for short-term mood improvement creates a connection between happiness and material acquisition. And breaking this connection can be challenging. It's better to start the habit of regular donations instead. This way, you'll uplift not only yourself but others too.

Not tracking expenses

There are many different apps now that help you control your expenses. And one of the best ways to understand your budget is to track your actual expenses over several months.