For years, I was constantly living paycheck to paycheck, broke and buried in so much debt. The worst part is, I would blame it all on the fact that I was just not making enough money.
But of course, we all know that was not the reason why I was struggling so much financially.
Because the truth is, sometimes it’s not always about how much money you make, it’s about how you manage and handle the money that you have. Regardless of how big or little it is.
I was stuck living paycheck to paycheck not because I was not earning enough, it was because of all the bad money decisions that I choose to make every single day that eventually lead me to financial ruin.
But thankfully, slowly I’m able to dig myself out of that hole and realize all my bad financial habits.
If you’re are currently in this situation, don’t feel bad or hopeless because there is definitely a way out. There is still a way for you to pull yourself out that hole and work your way up in achieving financial success.
Here are 5 financial habits of women who never go broke…
They know how to say no
Whether we like to admit this or not, most of us just have a hard time saying no (me included). Often, when our friends or co-workers ask us out for lunch or on a holiday, it’s so easy for us to say yes and justify it with the fact that we can afford it and we’ve earned it because we work hard.
Well, we are right! We do deserve it but the fact is, by saying yes to that opportunity, we are already saying no to other things that really matter or things that would benefit us more.
Like, instead of using that money to pay a huge chunk of debt, we choose to spend it on a holiday with friends, a holiday that we never even planned on going in the first place.
We have to remind ourselves that it is okay to say no. It’s always best to think of your long-term goals and ask yourself if this is something that you really want.
They live below their means
It took me long enough to realize that just because I can afford it doesn’t mean that I should spend it.
Learning to live below your means is the best way to achieve financial security and to finally break free from the paycheck to paycheck cycle.
I’ve realized that if I wanted to ease my mind from constant financial worries, I needed to learn how to start living below my means.
Yes, learning to live below our means may not be easy at first but we have to focus on the fact that doing this will not only help us avoid debt and financial ruin but it will also help us achieve the peace of mind that comes with financial security.
They have financial goals
Not setting financial goals was definitely one of my biggest mistakes.
You see, I was working for years and yet I didn’t have any savings and emergency fund.
And it wasn’t because I was not earning enough money, it was because I never really had to motivation to start it.
And you know why? It’s because I didn’t have any financial goals.
A goal requires you to take action.
Creating specific financial goals will not only help you determine the actions that you need to take to achieve that goal but it also gives you the motivation to work towards it.
They know how to prioritize
Once you determine your short-term and long-term goals, learning to prioritize them over your wants is vital in helping you achieve financial success.
Learning and figuring out how to prioritize our goals and needs will help you become more intentional with your spending and saving — thus, helping you become more aware of your financial decisions.
They say no to emotional spending
This was definitely one of the hardest things for me to do.
You see, I used to work in a very stressful environment, I was so unhappy and constantly overwhelmed with everything that every time I had a terrible day at work, my finances would always take a hit.
Every time something goes wrong, I would constantly treat myself to things that I don’t even need.
Yes, I would feel guilty but I would always justify it with the fact that I deserve it.
But the thing about emotional spending is, every time you had a bad day or something goes wrong in your life, you would always end up sabotaging your finances.
Thus, keeping you from the things that you truly deserve.
Recognizing and admitting to yourself that you are an emotional spender is a huge step.
Next is learning to find other alternatives for our emotional spending. Remember, there are plenty of cheaper alternatives out there, you just have to be open to it.
Breaking and changing our bad money habits is definitely not easy. It requires work, consistency, effort, and patience but what matters is, you don’t give up.
If you fail, get back up and try again. Keep looking at the bigger picture. Focus on your goals and keep pushing.
You can do it.