Why Hemorrhaging Money Starts and How to Get it to Stop
Once you start hemorrhaging money, it can be challenging to get your finances back in order. What once seemed like a controllable problem starts to feel like a helpless one.
What Does “Hemorrhaging Money” Mean?
People most commonly use the word “hemorrhaging” to describe blood releasing from a broken blood vessel. Hemorrhaging money means you’re losing substantial amounts of money or “bleeding” money.
What Causes You to Lose Money?
The main cause of hemorrhaging money is a set of bad financial habits. These bad money habits all have one thing in common: ignoring the true costs of something.
→ Lifestyle Inflation
By learning to delay gratification, there might be a list of things to save up for that motivate you to work toward a goal but defer spending until you’ve earned it.
→ Keeping Up with the Joneses
A teenager may spend her allowance on expensive clothing brands to impress her friends and have nothing left over to put towards college. Keeping up with the Joneses is a surefire way to hemorrhage money.
→ Lacking Better Wealth Building Habits
Everyone needs basic financial literacy and constructive money habits. For example, a family may be paying all of their bills on time and feel financially stable, but they don’t have an emergency fund.
How Do You Stop Hemorrhaging Money?
Preventing money hemorrhaging is preferable to fixing it later. Ideally, it would feel simple to live within one’s means and always have ample savings. However, this takes budgeting, impulse control, savings plans and goal setting. When done properly, it can allow you to live like no one else.
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