5 Bad Habits That Are Keeping You from Financial Freedom

** This article was originally written before the current economic situation we are facing, but there are a few tips that can be gleaned from it.

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Before you roll your eyes and move to the next article, at least read my first point. Then, you can judge if you’ve heard this all before or not.?

Great! Now that I have your attention—albeit, for a very short time—let’s talk about what financial freedom even means. The truth is that financial freedom can mean different things to different people depending on their priorities and goals.

To some people, financial freedom may mean not having to work at a 9-5—I wonder why they’re called 9-5s anyway because they are rarely ever that, but I digress.?

To others, however, financial freedom may simply mean being debt free. And there are many other thoughts about what financial freedom is.

Spending time to define what financial freedom means to you will put you on the right path to, well, financial freedom!

Achieving financial freedom takes a lot of hard work, but if you have these bad habits, your journey to financial freedom will be like pouring water into a basket:

1. Having a poverty mindset:?

According to Business Blogs Hub.com, “Poverty mentality is a mindset that people develop over time based on a strong belief that they will never have enough money. This mindset is driven by fear and can cause poor financial decision-making.” (https://www.businessblogshub.com/2012/10/do-you-have-a-poverty-mentality/)

Before I even knew what a poverty mindset was, I had a poverty mindset. I was working in a financial institution, but that didn’t save me from those limiting beliefs.

I was always waiting for a gold bar from heaven to fall into my laps, instead of finding ways to make more money. After all, I thought that I was being content with what I had.?

Now, I know that it is possible to have a wealth mindset and still be grateful for what you have. I also understand now, that wanting to be wealthy doesn’t make you greedy or an evil person.

2. ?Not having a financial plan:?

A financial plan shows how you intend to move from having GHS 0 to GHS XXX.? Having a financial plan is the first step to financial freedom because it helps you to put everything you need into perspective.

A typical financial plan will help you answer the questions:?

• How much do you want to have??
• When do you want to have it??
• By what means do you want to have it?
• ?Why do you want to have it??

Not knowing where you are going may be the reason why you haven’t reached there yet. Financial plans do not only provide clarity, but also help you measure how far you have come on your financial freedom journey, and how much more you need to do to get there. They also help you to see what is working and what isn’t.

3. Saving too much:?

Did you know that it is possible to feel like you are irresponsibly spending your money because you are saving too much? ‘Saving too much’ is simply putting money that should be spent on bills, fees, etc. into savings or investment accounts.?

Apart from never having enough for your expenses, saving too much can cause a lot of chaos in your financial system because you always have to dip your hands into your investments to cover your monthly expenses.

This leads to you missing out on compound interest, and if you are like me, you probably end up taking more than you actually need.

4. No Budget:

No, having a mental list of your expenses in your head does not count as a budget. A budget is a record of all your fixed and variable expenses and income for a specified period. If your ‘budget’ doesn’t provide you with this information, then it’s time for a new one.

If you want to know the correct total amount that you spend every week/month, then you should be very honest and state how much you actually spend. Understating your expenses because you now want to spend wisely isn’t going to make them magically disappear, and this can then lead to my previous point— over saving.

5. Impulse Buying:?

I guess I saved the best for last. Hi, my name is Renette and I am an impulse buyer—well, let’s say I’m an ‘impulse buyer on the mend’ since I’m working on overcoming it.

In one of my worst impulse buying escapades, I remember proudly announcing to my friend that I wasn’t going to buy anything that I didn’t need, just as we were approaching the entrance of the Accra Mall. Fast forward to 20 minutes later, and I was standing in front of a cashier with 5 t-shirts, some of which I have never even worn!

Impulse buying happens to the best of us and all these targeted Ads don’t make it any easier. But if you want financial freedom, then you have to learn how to say no to that dope pair of sneakers that will go well with your new red striped shirt. Or, even that cute wallet from Banana Home that you didn’t know you needed till you saw it.

I wish you all the best on your journey to financial freedom! And if you ever doubt how these small bad habits can cause any real damage to you in attaining financial freedom, remember that elephants don’t bite but ants surely do.

Author

This article was written by Renette Anim for Bethniel Finance. Renette is a Digital Marketing Manager and a Writer.

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