There is nothing more frustrating than getting stuck financially. What’s even more frustrating is seeing your friends and family making financial progress while you are still stuck in the same place year in year out. But why is it so difficult for you to move ahead financially? Here’s why:
Poor saving habits
When you don’t have a consistent saving plan, staying stuck is bound to happen. Saving is like paying yourself for all the effort you put to work. Make a habit of rewarding yourself every month without fail, and you will see progress. Even if you don’t make enough money, sacrificing a little won’t kill you.
Bad adopted habits
These are bad habits picked up from maybe your dad or a friend. If, for example, your dad had a history of misusing his and other people’s money and lying about where the money was going, it’s likely that you may also follow that pattern. But you don’t have to go down that route; you can still resist that temptation and learn from your dad’s mistakes.
Once you figure out the incentives that are driving your bad habits, it would be easier to get rid of them.
Trying to match the lifestyles of others
One of the reasons why you could still be stuck in a financial rut is trying to keep up with other people’s highlight reels. Just because your friend is always on vacation doesn’t mean you have to go as well. Sometimes the pressure of keeping up is too intense and you end up taking a loan to finance your vacation/lifestyle.
If you want to stop living from paycheck to paycheck, don’t give in to pressure to spend cash you don’t have. You can start with; creating a budget that works for your lifestyle, setting boundaries, making choices that align with your values and resisting the urge to keep up.
Setting unrealistic expectations
Sometimes setting unrealistic expectations can make us go downhill very easily. Once you don’t achieve these expectations, you deem yourself as a failure. And the little progress you had made will sink as well. Hence, you don’t even see the need of trying anymore.
Set achievable goals, but be careful not to limit yourself too much if you want to get ahead financially.