Money troubles and debt are part and parcel of a common man’s life. And these usually stem from some of their bad financial habits. Don’t you agree? Analyse yourself before you answer that. So, are you your own financial enemy? Here is a list of things that you do that might be sabotaging your finances:

Ignoring your credit report

You might be wondering why we are asking you to stop ignoring your credit report. Why should you bother checking it, right? Isn’t your credit report only for lenders who want to know your score before approving your loan or Credit Card? Well, no! Your credit report is important to you also.

One of the main reasons why you should check your credit report periodically is to prevent identity theft. Kick the unauthorised transactions in the butt before it’s too late. Apart from this, your credit report helps to identify errors made by the credit bureau and to ensure that your lenders didn’t make any mistakes while sending your data to the credit bureaus.

Remember that your fiscal health is as important as your physical health. Just like a periodical health check-up is necessary to keep diseases away, a periodic fiscal check-up is necessary to keep your finances fit. You get the drift here, right?

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Not paying your bills

If you are not going to pay your bills on time, you are going to land in a lot of trouble, financially. Apart from all the personal troubles, you are damaging your Credit Score. In the future, if you want a Credit Card or loan, your lender is going to dismiss your application because of your bad financial reputation. Do you really want that to happen? No?

Then, you got to get your act together. If your current financial situation is bad and that’s why you are not able to pay your bills, then dial your creditor and explain your situation to them. Most lenders will be willing to work out a payment plan by keeping your situation in picture.

Additional Reading: Start Paying your Bills on Time!

Too many financial goals at a time

So, you have decided to get your finances in order. You start to cut down on your expenses. You start to save more than usual. You start paying off your debts. You concentrate on building an emergency fund. Yes, you need to do all of those stuff. But, don’t be in a hurry, buddy! Take small steps. Start with one goal and then move to another.

What happens when you have too many goals at the same time, you might be wondering. Well, if things don’t work out according to your plan, then you’ll get easily discouraged and give up on your goals easily. And you’ll not achieve any of your goals. That’s why it is better that you pick one goal and get it done first. Then, move to the next goal.

Debt dieting and splurging

You made a big purchase on your Credit Card a few months back. Since then, you have been sacrificing and saving a lot to bring the balance down to a manageable amount. Once you’ve managed to do that, you go right ahead and make another big purchase. And lo, your balance is back up again!

Sounds like something that you often do? To be honest, using more credit when you’re trying to clear debts is financial hara-kiri. It is just like paying only the minimum amount due on your Credit Card. You are always going to be stuck in the cycle of debt. You are going to end up hurting your Credit Score which in turn spells trouble for your financial future. So, what do you do?

Firstly, when you are in the payoff mode, give your Credit Card some time off. Do not use it at all. Secondly, you need to start paying the balance in full every month if you want to be free from debt as soon as possible. It isn’t a difficult feat to achieve; you just need to practice good financial discipline.

Now that you know why you are your own financial enemy, it’s time to correct these mistakes and save your finances from drowning.