8 Essential Financial Habits to stay Broke

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Freedom Nova Tips to Stay Broke

I mean really, why would you want to budget? It’s tedious, annoying, and you actually have to keep track of everything you spend money on. That means you have to keep receipts, look at your online banking and credit card statements and so on… Why would you want to do all that work every month when you already have a limit in how much you can spend with every paycheck? And besides, if you use all of your paycheck you can always get a payday loan or max out your line of credit and credit card right?

As I’m sure you know, payday loans are a brilliant idea since they only charge a 35-40% APR (annual percentage rate) on top of the service charge. The access to the cash is definitely worth it, even when the interest is higher than most credit cards, because you can’t live without food right?

We have so many things to spend money on! Groceries, rent, clothing, entertainment, transportation, impulse purchases, Grande vanilla lattes, the amazing $17 lunches you just can’t quit, the organic ice cream, and of course your favorite monthly magazine! With all that how could you possibly prioritize saving money? Saving 10% of your gross income is for crazy people! We all have to live life, we can’t take our leftover money with us to the grave, I mean we could donate it or help our family members, but we can always worry about that later!
Gut feelings are so important in life. When you find “the” pair of shoes that you’ve been looking for your whole life only a loser would pass up the chance. I mean who cares if there are at least 500 to 50,000 pairs of the same shoe being manufactured and the fact that you have no money left over for the month. That’s what the credit card is for and you’ll likely never be able to meet shoes of the same level, ever again…well at least for another or week or two. Hey, on the bright side at least you get to rack up some credit card reward points!
While you’re at it, you always want to pay retail or face value for everything. I mean why wait for a sale when you could get it now, and be the first to have it in your circle of friends or at your workplace. Bragging rights are so important!
Packing a brown bag lunch is for people that have way too much time on their hands. Cooking a little extra the night before and taking that to work is absurd too, why on Earth would you want to eat leftovers when you could spend the $17 and have the most delicious lunch ever? Lunch is a reward for all the hard work you put in day in and day out, ruining it with a plain peanut butter and jelly sandwich is absolutely unthinkable.

“They” always tell us to get up and go for a walk and preferably get some fresh air. Well the best way to get this done is to go for 3 coffee breaks a day. Since Starbucks is within walking distance and you do get at least 15 seconds of fresh air, the Grande Vanilla Latte is definitely worth every penny.

On a conservative day you could spend $10 on a lunch and another $10 on your coffee breaks. That’s $20 a day or $100 per work week. So you’re only spending $4,000-$5,000 a year on you lunch. No big deal right? I mean who wants to go on a nice vacation, pay down the mortgage quicker, or pay down some debt?

Here’s an article on Business Insider about how amazing it is to not pack your own lunch.

The stock market is a scary place, why risk money at all when you could lose it all? At least that’s what Uncle Joe told you right? I mean if you invested just $200 a month for 30 years with a 5% return, you could have $166,451.73, but so what? Expenses first, you gotta live life right?
Risk tolerance? Asset allocation? Why waste your time when you could put everything in penny stocks and hopefully have a home run. Who knows you might hit a jackpot and be able to retire super early when one of those stocks that you own go up by 15,000%. Although you’ll likely sell everything when you gain $2,000 on a $10,00 investment, it’s the thought that counts! It’s a gamble so why bother planning? Speculation is the key to success with investing!

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In reality…

Hopefully my sarcasm didn’t get to you. There’s a reason why I titled this article “8 Essential Financial Habits to stay Broke.” If you don’t want to be broke, these are essential habits to avoid yet many people have at least a couple of these habits and have no sense or urgency to change anything.

Paying high interest, having too much debt, making impulse purchases, making unnecessary daily purchases, not investing, or taking too much risk with investments are all horrible habits to have. If you have any of these habits, think about how much it is costing you financially because each and every one is killing your financial future.

Let’s take the 3 coffee breaks a day example. I personally love drinking coffee and won’t lie that I drink Starbucks sometimes. I have maybe one specialty drink, such as a Caramel Machiatto, every one or two weeks. So the $4 I spend is divided by either 7 or 14 days, which is $0.29~$0.57 per day which is significantly less than the $10-12 you might be spending on a daily basis. Sure it might keep you sane but if you treat yourself less to these drinks you’ll appreciate them more. I know it isn’t going to be easy to quit outright, so why not start by reducing it to once a day or once every two days. You’ll be surprised by how big of a difference it will make over time.

Let’s say you save an average of $10 per day by packing your own lunch and either brewing your own coffee or opting for the healthier drink, water. That’s roughly $300 per month. Save that for 20 years at a 5% return and you’ll have an extra $123,310.10. I just gave you 123,310 reasons why you should pack your lunch and drink a little less coffee.

If you have any of these habits, drop them now!

Must Reads!

  • Read about figuring out your roadmap to Financial Freedom here!
  • Grasp the essentials of constructing your customized Investment Portfolio here!
  • The Master List of ways to save money!
  • Master List of Income Sources!

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