Are You Financially Complacent?
You have that nice job that brings in enough income for yourself (or for your family) to live comfortably. You can splurge on whatever you want because you can, and you can pay your bills without looking because you know you have enough money to cover them. Living like this means you’ve become financially complacent. You don’t really know how much money you’re spending because you really don’t need to know. Unfortunately, this causes you to lose money that could be put into a savings, retirement, or vacation account. Here are some signs you’ve become financially complacent:
1. YOU NEVER LOOK AT YOUR BILLS
As mentioned above, you don’t look at your bills anymore. Sure, bills are stressful and who really wants to look at the money leaving our bank account anyways? Well, you need to look at your bills to know exactly how much you’re spending. You can cut back on the power bill if it’s too high, or you could even catch a mistake on your cable or phone bill. Not looking at your bills could be costing you thousands every year.
2. YOU SHOP ON AUTOPILOT
We’ve all been guilty of going to the store and buying groceries without looking at the price. We know what we need and don’t really need to look at prices because it costs the same. Right? Wrong. You could be spending more on the items you buy because they've increased the price and you didn't notice. You should switch to store brand instead of name brand to lower your costs, and we all know they taste the same anyways. Decide whether or not you really need those snacks. Make sure you buy the things you really need, then treat yourself later. Shop smarter and save money.
3. YOU DON’T KNOW HOW MUCH YOU’RE SAVING
Are you even sure you're saving? You may have set up automatic saving a couple years ago when you worked part time and you never bothered to check it after you got a new job. You might've been transferring only $50 or $100 into your savings account because that was all you could afford to save. Or you only save when you manage to remember. Check to see if you're saving, and if you're not, what are you waiting for?!
4. YOU’RE LIVING WITHOUT A BUDGET
Sure not everyone thrives on a budget, but sitting down for a few hours to look at your expenses can really help you see how much money you’re spending and saving. This can help you realize that you have a subscription to something you don’t even use anymore. That’s money you didn’t know you were wasting! Set up a budget to help you see where exactly your money is going and you’ll see just how much you’ll save when you cut spending.
5. YOU MAKE IMPULSIVE PURCHASES BECAUSE YOU CAN
Raise your hand if you bought something on impulse just because you had the money and you wanted it. Do you even use it anymore or is it collecting dust? Everyone does it. We buy something we want in the heat of the moment that we really didn’t need and then leave it somewhere to collect dust. Just because we have the means to buy something, doesn’t mean we should. Make a pros and cons list to see how this purchase will positively, or negatively, impact you and then make your decision.
6. YOU DON’T HAVE ACTIVE FINANCIAL GOALS
Are you saving for retirement or a vacation? Are you saving to buy a new house or car? If you’re not, then you’re financially complacent. You need to save for retirement, so you're not working past 65. You need to save for a vacation, so you have something to look forward to. Save for a new car or house so you can feel a sense of accomplishment. Saving this money can also help you cut back on things you don't really need.