The Financial Behaviors That Keep Us Poor

Our paycheck defines whether we’re rich or poor, right? In reality, true wealth comes less from a pay check and more from your behaviors.

Each financial decision you make or habit you sustain has an impact on your finances, and you’ll be surprised to discover all the financial behaviors that are keeping you poor.

#1 Spending More Than You Earn

a woman with shopping bags

One in five Americans spend more money than they earn. Are you one of them? It’s easy to get overwhelmed by bills and rent, but the extra spending usually comes from spur of the moment purchases, like fast food, when you decide what you want now is more important than your future financial stability.

#2 Not Building a Savings Account

When you get your paycheck you more than likely start right away on the bills and expenses. However, by paying yourself each month, simply 10% of your income, you can build up a sizeable nest egg in no time that will give you peace of mind for a rainy day.

#3 Being Too Generous

We all want to treat our friends and family every once in a while to make us look good. However, if you’re constantly paying for dinner or buying the next round, that debt is going to catch up to you. If you’re really in a pinch, allow others to pitch in instead of spending money you don’t have.

#4 Using Credit Cards Like Cash

a woman with a credit card

Credit is not free money. The average American has over $15,000 in credit card debt, and that’s just the average. By changing your mindset about credit cards and thinking of them more as a debit card that needs to be repaid, you can avoid racking up a total.

#5 Overdrawing From Your Account

The easiest and fastest way to lose money is through unnecessary fees. Over drafting is an automatic $35 fee of hard earned money. Always be aware of your account balance and never try to take out more money than you have.

#6 Not Planning Ahead

Most of us are on top of our monthly expenses. That’s what our monthly paychecks are for. However, other expenses come quarterly or annually that we need to be prepared for. By putting a little money away each month you won’t be caught surprised and empty handed when the payments are due.

#7 Ignoring Debts

When you’re broke, sometimes it’s nice just to curl up under a blanket and hide from those big red numbers. Unfortunately, all debt accumulates interest, and all interest is simply money down the drain. Ignoring debts doesn’t make them go away, it allows a bad situation to get worse.

#8 You Have No Emergency Fund

emergency fund

Emergencies happen, and they always come at the most inopportune moments. Put a few dollars away each month until you have a solid $1,000 set aside specifically for emergencies or unexpected expenses.

#9 Spending Too Much on Housing

Maybe it’s time to consider moving to a smaller place. To be financially responsible, you shouldn’t be spending more than a third of your paycheck on housing. If you’re spending more than that, you’re only setting yourself up for failure

#10 Not Making Adjustments

Maybe you have a routine where you buy donuts every Saturday, or you make large car payments because you’ve always had a nice car. However, when things aren’t working out financially it will take adjustments, such as getting a smaller car, going without donuts, or buying cheaper brands at the grocery store.

#11 You Don’t Budget

If you don’t know exactly where your money is going then you’re losing it. By creating a budget you can track your expenses and move any excess money to the areas of your finances that need it most, like debt.

#12 You Believe Wants are Needs

clothes hanging in a shop

Wants are not needs. Needs are food, clothing, and shelter. Wants are fast
food, high-end brands, and a big house. You can want those cupcakes all you want, but you don’t need them. If you can’t differentiate between wants and needs, you’re losing more money than you know.

#13 Lack of Money Management Skills

If you don’t know how to manage your money, you’re destined to spend more than you should. Research classes, workshops, or websites that will teach you skills and knowledge to manage your money in ways you’ve never considered before.

#14 You Settled for a Job

a man working

How many times have you complained about your paycheck? Have you ever asked for a raise? Have you ever looked for a different job, or considered getting training or education in a different field of work? Don’t get stuck unable to make ends meet. Try to increase your income any way you can.

#15 You Want to Get Rich Quick

Not going to happen. People waste thousands of dollars on Get Rich Quick schemes and they never come out on top. The key to wealth is a wise use of time, so stop throwing your hard earned money at sketchy opportunities.

#16 You Want It All

picture of a big house

People want everything too soon. However, once you’ve left your parents and are out on your own, you can’t realistically afford a nice car, a house, or expensive holidays in Hawaii. By saving your paychecks for large purchases one at a time, you’ll be able to achieve your goals in a more practical and financially responsible way.

#17 Not Investing Properly

Buying a fancy house or boat is not investing. Properly investing means putting your money toward yourself in things like your career, education, or savings. All of these will benefit you in the future.

#18 You’re Unwilling to Sacrifice

If you can’t sacrifice, you’ll never get on top of your finances. Going without or “making do” are essential to getting yourself financial security and to a point where you can afford more luxury in life.

..To Summarize

Feeling a little guilty? It’s not too late to make some changes. They say the best time to start something was a year ago, and the next best time is now. By living more responsibly and following some of these steps, you can be sure to have a more secure financial future.

Top Seven Free Budgeting Tools

Planning is a very crucial aspect not only of the business organization but also to nations. It helps you set goals and also strategies on how to achieve your goals and attaches a timeline to them.

Planning has now been made easier by technology through the introduction of very many online budgeting sits. This
means that you can monitor and implement your business plan at the comfort and convenience of your laptop or your mobile phone.

Not only does this makes work easier but increases your chances of eradicating losses in the organization.

Some or most of these online budgeting sits offer advisory services and tips and they will help you be realistic and implement your plan. For this reason, you will need the best, most efficient and reliable budgeting tools there is in
the market.


1. YNAB(you need a budget)

homepage of ynab

As the name suggests this is an online budgeting application that will help you analyze and manage your money and account. The YNAB can be linked to your bank account and will, therefore, work with actual fat s and figures.

This platform uses a user-friendly layout which will allow the user to make a plan in a couple of minutes. It will always help you manage your account. The data used in this platform is mostly reliant on previous incomes and earnings rather than project for the unseen future. This unique factor will mostly give accurate results.

It has a very secure encryption from their server to your bank account. That makes sure all your details are safe and they are accountable for every account and make sure to keep your account an affair between you and them and will only provide information at the authorization of the customer or the law.

This application helps monitor your rate of income and expenses and provides an overview of how you have spent your money. It also gives advice on how you should plan your money and this will always give you the benefit of making informed decisions.

They will make sure they change your mindset to seeing every dollar as an investment. They will give you choices on how to invest also. They also motivate students I school by giving them a one-year free account and this is what will build tomorrows mega-investors. This is probably the best budgeting tool ever. YNAB offers you a 34-day free trial.

2. Personal Capital

homepage pick of personal capital

Some of us will always want a third party’s confirmation on issues before implementing them. This is why the personal capital account offers a two based kind of account offering serving both as a financial tracker and financial advisor.

The difference between this YNAB and this kind of account is the YNB offers paid for financial advice. It has new and improved new feature like the retirement  planner, educational planner, investment checkup and the assessment allocation target.

The personal capital account has a very sophisticated security system that is simply a headache for hackers. The application has also been customized to be accessible by a couple of devices ranging from smartphones, laptop computers, and smartwatches.

NB! They also offer a one-month free trial.

3. Mint

homepage of mint

Coming in this on the budgeting online application is the mint application. It offers its services on a 24/7 basis and will alert you personally on bill reminders, over budgeting and even large transactions this will keep you financially fit as you will have a reminder and a clear image in mind of what you are doing. Do you want a fast track way to your goals then this is your kind of sit? It is also accessible on mobile device and on smartwatches. They have a very high-security feature and will send you a randomly generated verification code which you will use to gain access to it.

4. Moneyspire

moneyspire homepage

Derived from the word inspire and money, moneyspire is the site to look for all your budgeting needs. It has special feature that supports multiple currency setting.

It also makes sure to have a personal relationship with their customers and reach out to customer service via email or telephone. Their security detail is well organized and your passwords and accounts remain on your device and in your head as they do not collect any data unlike other sites that collect personal data.

For a onetime simple fee of $54, and from there you can manage unlimited accounts from your linked accounts.


5. Moneydance

moneydance

At $49.49 you can now have an account with the money dance group. The money dance makes investment decisions.

It has a wide database of data concerning investment and making an effecting action plan with the best budgeting there is. It has an offer of free 100 transactions made on the side per client.

They also have vast access resources as you can access it on any device may it be a smartwatch, smartphone or even a laptop computer.

6. Count about

homepage of ca

Offering a 15-day free trial, count about takes care of your financial budgeting process and will act as your financial and does not offer budgeting advice and it leaves you to make your calculations and evaluations.

This does not provide a database for references though it has majored on customer base security features and works in conjunction with a third party.

However, a weaker budgeting tool as it has limited feature. It is however charged at arrange of between $9 and $99 for an account.

7. Banktivity 6

mac application banktivity 6

With a rating of 8/10, the activity 6 is one of the better tools to use for your financial needs.

Formerly known by the name iBank, the Banktivity takes a personal interest in their clients and will do a daily personal check up on your accounts and budgetary.

They follow up on your deposits and withdrawals and will advise in case of large withdrawals. They will, through their financial advice, prevent you from making hasty decisions.

Conclusions

From the seven budgeting tools, it is only fair to say that they will ease your financial trouble and will offer both accountability and security for your accounts. So the next time you are looking for an account to invest in make to consider these tools.

Look for a tool that will accommodate a number of accounts and also gives you tips, suggestions, and warnings on your financial matters.