If you find yourself penniless almost every month and can't figure out where your money is going, it's likely not just your salary that's to blame. It's often the daily habits we've made commonplace, even though they're actually financially damaging.
Here are some of the habits that most of us do, without realizing that they are pure self-sabotage.
1. You only save if you have something left at the end of the month.
Instead of putting a fixed amount aside as soon as we get paid, many of us expect to have something left over at the end. Spoiler : we usually don't have anything left over. The solution? Put an amount right away (even 1,000 new lek per month is better than nothing) into a savings account and manage the rest for expenses.
2. Underestimating maintenance costs
Buying a house or a car is just the first step. They require maintenance and this goes on for much longer than we think. If you don't plan for these expenses from the beginning, after a year you could end up with debt or unresolved problems.
3. Failure to plan for emergency situations
An emergency fund is a must. Even if you can't save up 3 months of expenses right away, even 10,000 or 20,000 lek is a big help in unexpected situations. Instead of going into the red right away, you have a safety margin.
4. Just because you can afford something doesn't mean you can afford it.
Not every penny you have is worth spending. If a purchase means you'll go into debt or empty your bank account, it's not something you can realistically afford. You may have the money, but not the luxury to spend it.
5. Increasing your lifestyle whenever your salary increases
When you start earning more, you instinctively raise your standards: more expensive food, better clothes, more luxurious vacations. This is the classic mistake called "lifestyle inflation." Instead of saving more, we simply spend more.
6. Wasted food translates into wasted money.
We've all been on a "hungry" shopping spree at the supermarket, only to end up throwing rotten vegetables in the bin. But next time, think: you're throwing money away.
7. Long-term loans because "the payment is smaller"
A lower monthly payment may seem affordable, but in reality you'll pay much more over the years, especially if you're taking out a car loan that loses value every day. Instead of extending your payment to make it easier, it's probably better to choose something cheaper.
Source: Your Tango
