Many persons are finding money disappearing from their bank accounts, pockets, even from their hands and they keep asking themselves, where this money is going? Many people blame the government for the aforementioned disappearances; claiming that the government is stealing their money through taxes. Some others blame their banks or Credit Unions, claiming that the institutions are stealing their monies.
I have been looking into this phenomenon and I realized that the real thief may really be closer to us than we think.
I have identified one of the biggest thieves and I felt it was my duty to expose him. I will also show five (5) ways how he robs us blind and what we can do to stop him.
The thief surname is “Habbit”, first name “Financial” and I know many of us know him, because we all have him as our friend. He can be a good friend, or a bad friend. When he is being a bad friend we need to get rid of him, however many of us prefer to have him around especially when he is being a very bad friend and robbing us blind. The following are five (5) ways he robs us and what we can do to stop him:
1- Through Cable (TV)- It seems to be a normal thing for persons to spend over $100.00 on cable every month. Is this a need? No!!! It’s a want. How about cutting back on our TV habits a bit? I am not saying to not have cable if you feel like you can’t do without it, maybe it’s best to just have the basic package and leave these premium expensive channels alone.
2- ATM fees- Do you have any idea how much money you are wasting by hitting up the ATM every time you need to make a small withdrawal. Especially if you are using the ATM of a bank that is not your bank. You pay fees to your bank and you pay fees to the bank whose ATM you are using. Try setting a (weekly or fortnightly) budget and take out enough money from your pay to last you until the next week or two if possible to avoid too much frequent visit to the ATM. If you are using your bank and not paying fees, then kudos to you.
3- Impulse buying- You go to the supermarket to get milk, however while standing in the line to pay you grab a pack of gum. You walk past a hotdog stand and smell the hotdog and think you must get one, coffee on the way to work. If you get rid of these small indulgences, you’ll be surprised at how much you’ll be saving. If you don’t need it don’t buy it, if you can’t afford it put it down.
4- Brand Name- I guess this is about making a fashion statement. But do you really need to pay a whole lot of money to advertise a brand for a company. Shouldn’t they be paying you to advertise for them? I will never tell people to stop wearing brand name, but if this is getting in the way of you achieving financial freedom, then you have a choice to make. Decide what’s important in your life and move on from there.
5- Loans to buy liabilities- I will define a liability using Robert Kiyosaki definition which is anything that takes money out of your pocket. An asset by contrast is anything that put money in your pocket. Many people apply for loans to purchase personal vehicles, a car for instance. They apply for the loan; they have to pay back the loan with interest every month. Then ever so often you have to buy tires for the car, brakes, clutch, filters, insurance, oil, repair minor damages, gas and a whole host of other things, again I am not saying don’t purchase a car, however ask yourself, is it necessary. All this car may be doing is robbing you of your hard earned money.
It is about time to STOP PICKING OUR OWN POCKET. Review your financial habits, take time to develop good financial habits, have a family budget and stick to it. If you feel that you can’t live within your means, then that’s no problem, you just need to EXPAND your means. Consider entrepreneurship or a second job, just don’t rob yourself.