Senior Actuary at Metropolitan Nidia Lourens <\/b>shares money habits that you probably don\u2019t realise are stopping you from reaching true financial freedom.<\/p>\n\n\n\n
I don\u2019t want financial freedom \u2013 said no-one, ever.<\/p>\n\n\n\n
We all want financial wellness, but we may just be guilty of certain money behaviours that are stopping us from reaching wealth in the future \u2013 without even realising it. <\/p>\n\n\n\n
While avoiding these behaviours may not get you on the cover of Forbes, says Nidia Lourens, Senior Actuary at Metropolitan, \u201cit will stop you from becoming poorer over time, curtailing your chances of achieving wealth. <\/p>\n\n\n\n
\u201cThink of them as \u2018bad habits\u2019 that you need to get a handle on as soon as possible.\u201d<\/p>\n\n\n\n
\n Not budgeting<\/b>\n<\/p>\n\n\n\n
There\u2019s a reason everyone says that drawing up a budget is the first step towards financial security. \u201cWithout a clear, written budget (no, having one in your head doesn\u2019t count!), it\u2019s easy to spend more than you earn,\u201d says Lourens. \u201cThe secret of financial wellness is to live within your means, and working to a budget creates discipline.\u201d<\/p>\n\n\n\n
\n Spending too much time online<\/b>\n<\/p>\n\n\n\n
\u201cAlmost everything we\u2019re exposed to online is designed to make us spend money,\u201d Lourens said. \u201cFrom that ad of a cute dress following you around social media, to a retailer\u2019s newsletter bombarding you with a product \u2018special\u2019, to an influencer promoting a miraculous skin cream \u2013 we don\u2019t even realise that we\u2019re being inadvertently targeted every time we go online.\u201d<\/p>\n\n\n\n
While it\u2019s unrealistic to avoid the internet forever, \u201cwe can be mindful of the amount of time we spend online \u2013 especially on social media \u2013 and become aware of how advertisers are constantly looking for avenues to monetise our browsing habits and promote their products.\u201d<\/p>\n\n\n\n
Before you purchase something, give yourself 24 hours to think it through, she suggests. \u201cThat will dampen the immediate dopamine rush that comes with buying something unnecessary, and you will be in a much better state of mind to make a rational decision.\u201d<\/p>\n\n\n\n
\n Getting too comfortable with credit<\/b>\n<\/p>\n\n\n\n
Too many of us see credit as a way of life. We buy on credit, slip into our overdraft, or swipe our credit card needlessly while exposing ourselves to hefty interest rates and debt servicing fees that eat into our money. <\/p>\n\n\n\n
\u201cBad debt should be avoided at all costs, says Lourens. \u201cIt\u2019s not a way of life \u2013 rather, a last resort.\u201d <\/p>\n\n\n\n
And if you do happen to use your credit card, aim to settle the outstanding balance as soon as possible, to avoid these fees.<\/p>\n\n\n\n
\n Thinking that only saving will get you rich <\/b>\n<\/p>\n\n\n\n
As we said saving is important, but there is ultimately a cap on how much you can save. \u201cSaving alone is unlikely to make you wealthy \u2013 the other piece of the puzzle is to make more money.\u201d Easier said than done, right? <\/p>\n\n\n\n
But if you look carefully, there could be a plethora of opportunities available to you, which are right under your nose. A side hustle \u2013 where you monetise a skill set or hobby or provide a service, is one way to bulk up your earnings. Investing is another. Or, you may be due for a pay rise, which you\u2019re trying to work up the courage to ask your boss for. \u201cTo achieve true financial freedom you need to save more but you also need to make more, advises Lourens. \u201cSaving alone is unlikely to get you wealthy.\u201d<\/p>\n\n\n\n
\n Treating money talk as taboo <\/b>\n<\/p>\n\n\n\n
We\u2019ve been taught by previous generations that talking about money is off-limits \u2013 we don\u2019t discuss what we earn, spend, or our debt. But we should, says Lourens. \u201cThere is still a great deal of stigma attached to talking about money, but by keeping our financial affairs hidden from those people who may need to know about our financial status \u2013 like our loved ones \u2013 we are setting ourselves up for failure.\u201d<\/p>\n\n\n\n
For example, having an honest conversation with your partner about your debt and financial goals is important, as is educating your kids about reckless spending, she advises. <\/p>\n\n\n\n
Another way of breaking this habit is to consult a financial adviser. <\/p>\n\n\n\n
\u201cYou will need to give them a full picture of your finances, warts and all,\u201d says Lourens, \u201cbut once they have a clear understanding they will be able to advise you on what you can do to put yourself in a better financial position.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"
Senior Actuary at Metropolitan Nidia Lourens shares money habits that you probably don\u2019t realise are stopping you from reaching true financial 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