So many people all over the world are in one debt or the other. Debt in the context of this article is money owed to another person. It is an important factor that prevents individuals and families from achieving financial prosperity. This article summarizes the signs of lack of financial control, which should be avoided.
1. Spending more than you earn: If you spend more than you earn, you will always borrow to sustain such a lifestyle
2. Frivolous use of credit card: The use of credit card allows you to spend the money you don’t have. If you are not disciplined, there is a tendency that you will go into debt perennially because of this habit.
3. Failure to identify your needs from your wants: We all know from elementary economics that human wants are unlimited. The implication of this statement is that our financial resources will not be enough to tackle all these wants. The way out is that you should spend your resources on those things that are actually needful.
4. Impulse or spontaneous purchases: People who are not financially disciplined usually buy things at first sight, even though such things may not be needful at present, but because they are pleasing to the eyes.
5. Buying things to impress others: This habit can also be described as ego spending. People who do this do not have a bright financial future at all.
6. Obeying Parkinson’s Law: This law states that expenses will always rise as income rises. The law has been proved to be true in most cases. To be financially free therefore, you must disobey this law in your financial life.
7. Living without a budget: It is a bad practice to live without a budget. It is equally bad to fail to work with the budget when made.
8. Poor saving habit: One of the skills you must develop for financial breakthrough is the saving habit. People who cannot save a portion of their income can hardly have financial freedom.
9. Believing that it is impossible to live without going into debt. This gives you the license to borrow. This is a belief that should be discouraged for you to be financially free.
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