Tunde is a young working-class man in Lagos who earns (N250,000) two hundred and fifty thousand naira monthly as his salary; two years down the line, he has nothing to show for it. He still groans and complains at every given opportunity about how hard life has been financially.
Do you think Tunde is suffering from financial insecurity? Oh yes! He is. Financial insecurity can come in various ways and there are so many victims today. Maybe you have also felt the need to complain just like Tunde, about how hard life has been on you financially despite having a source of income that has been stable.
Understandably, there are some things beyond your control; however, you can work on dropping all insecure habits that have suppressed your financial life so far.
Here are five insecure financial habits we strongly suggest you should drop today.
While it is sometimes inevitable to take loans (and it is even advisable for some investors), it becomes a curse rather than a blessing when one begins to owe debts for unreasonable reasons.
Sometimes, this habit leads to huge financial burden because of high interest rate and when you do not have a payback plan, it automatically weakens your financial life.
So, if you are borrowing without a concrete payback plan, we strongly advise you stop. Remember, never borrow to consume.
2. Lack of Planning
This is otherwise known as impulse spending. A popular saying goes thus — he who fails to plan, plans to fail. That person should not be you.
Unfortunately, many people today fail to plan because there is a lot of pressure to look good, buy the latest cars and gadgets, show off at nightclubs and parties. Though these habits satisfy our momentary feelings, they create a looming problem in your finances.
These habits weaken your finances and make it difficult to achieve either short- or long-term goals because you have spent significant resources impulsively.
This leads us to our next habit.
3. Undefined goals
Everyone knows there are two types of goals, short-term and long-term. It is essential to have both short-term and long-term goals. However, there are many people who have neither any of these goals.
Having a goal comes right before setting plans to achieve that goal.
This goal could be either short-term or long-term depending on what they are aimed at and the resources available. Finances thrive on goals and plans and not impulse spending. Define your goals today to save your financial life from crashing and then watch your money multiply.
4. Financial literacy
Are you financially insecure because you do not understand certain aspects of your finances? Are you afraid to lose money and so avoid all forms of investments? Do you try and convince yourself that investment is not for you?
Rather than taking this as a way of life simply because you seem to have enough for each day, why not see it as a hole that needs to be filled?
Do not the lack of knowledge in financial literacy stop you from succeeding. Get educated about your finances and fill that hole today.
Financial illiteracy is an insecure habit that weakens your financial life. Here are a few suggestions to help you overcome this habit: read books, watch videos, listen to podcasts, attend events, and visit our website and social media handles daily for helpful tips.
5. Waiting For The Big Wins
Waiting for the big wins before you celebrate yourself is a sign of insecurity. Everyone deserves to be celebrated, so does every win, whether big or small.
Fear will never allow us to reach our highest potentials financially.
When you celebrate your small financial wins, it only reinforces your zeal to achieve something bigger.
However, it is important to note that such celebrations must be planned and remain within a budget.