‘Normal’ money behaviors that hold us back.

I was surprised to learn from the Canstar NZ Consumer Pulse report that most Kiwis live outside their means with 65% of those under 40 admitting to spending more than they earn.

This got me into thinking about how being ‘normal’ is definitely not something that we want to strive for and we must chart our own course in order to build wealth and live our best curated life. Here is a round up of ‘normal’ money behaviors that are holding us back:

1/ Buying things on payment plans (including buy now pay later)

Things that we can have now and deal with later are endless in our current society: car, fridge, phone, tv, clothes etc. Some tough love coming up - if you cannot pay cash for it then you cannot afford it. Save up for it and pay for it with cash, your future self will thank you.

2/ Saving what is ‘left over’ at the end of the month.

I am a natural ‘spender’ and if there is money in our checking account then I am pretty good at finding ways to spend it. To combat this we religiously transfer out money that we have allocated towards savings and investments the day after we are paid so I can spend the rest guilt free.

3/ Not planning for the unexpected (which should be expected)

Unexpected costs are bound to pop up and unfortunately most of us reach for debt when the time comes. These items usually fall into 2 categories:

• irregular items that are likely to occur (e.g car maintenance costs, vet bills, replacing whiteware, Christmas, gifts)

• unforeseen items (loosing your job, last minute travel to visit a sick family member)

Making an allowance for the above in your spending plan and having an emergency fund is the best way to prepare.

What are some ‘normal’ money behaviors that you are saying goodbye to?