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Home / Managing Your Money

Five money habits that will not make you rich

 When it comes to money, always cut your coat according to your size (Image: Shutterstock)

It is arguably everyone’s dream to someday become rich and not suffer a day in their lives. The thought of paying bills and going shopping without having to look at a price tag can be amazing, but it doesn’t come at the snap of a finger, it takes time.

Time most young and old people alike are not willing to utilize and spin to their advantage to make money.

As the saying goes you can’t have your cake and eat it, is the same way you can’t expect to spend money extravagantly and get rich. Here are some common habits that won’t make you rich:

  • Spending without a budget

Even the richest people out there create and stick to budgets. It is almost impossible to grow your money when you can’t even keep track of your spending.

Yes, a budget may seem constraining and unnecessary but it is the only way you can deliberate on your priorities and shape your financial goals.

Both short term and long term goals should be things you consider when working your budget. For instance, your budget should include your retirement plan but this doesn’t mean you cannot buy a car or a house in the short term.

  • Impulse buying

Like an addiction, impulse buying can be equally addictive. It gives off a certain high when you buy things you don’t necessarily need.

You will constantly find yourself looking for the best deals in town and offers so you can spend money unnecessarily on cheap things.

In order to save money, you will need to learn how to manage it first. When you can’t curb your erratic behaviour, money will always be a tool for you to spend and not to save for the future.

 Spending money you don't have will put you in unnecessary debt (Image: Shutterstock)
  • Incurring too many debts

While taking a loan to assist in an emergency may be the wiser thing to do during a crisis, it may also be the reason you will never get rich.

When you live on one loan at a time, it only means at the end of each month you have no money to put in your savings account. Instead, you are always paying loans which can go on for years without you realizing it.

This vicious circle of paying debts and incurring new loans can go on and on if not checked before you realize it, you are retiring with no money in your account.

  • Lack of investments

While saving might be a good way to secure your future, that money is no good lying around in your account not making any profits.

You can never get rich without taking risks. Before gambling your money away into an unknown venture, always ensure the investment opportunity is legit and of your choosing.

Also diversify your investments, do not put all your eggs in one basket just to stay safe. Take a chance and watch your money grow.

  • Being complacent with your position at work

A lot of people get too comfortable working in the same position for the same company without thinking of their personal growth.

They will not ask for salary increments, fight for job promotions or better their skills, they will remain in the same redundant position and with that no hope of ever getting richer. To change your lifestyle, you must be willing to take risks and want to change status quo.

You can also start a side hustle to generate income for you, this kind of startup business may someday grow into a full scale business. All you have to do is get out of your comfort zone.

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