5 Habits That Will Lead You to Bankruptcy

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We work ourselves to the bone, and yet there is still the danger of going broke! Truth be told, no one is exempt from the danger of going bankrupt. Even the rich have to rely on their bankruptcy lawyer at the worst of times! How much more for the average worker who may have to live from pay check to pay check?

That’s the bad news.

But, there is good news. We don’t have to go down that path if we are mindful of our finances.

There are certain habits that may contribute to financial ruin, but if we are aware of these habits and avoid them, we can live a happy, financial stress-free life. Let’s take a look at them.

Doing groceries hungry

Does this even matter? Groceries? They’re necessary!

Think about it, though. How much do you spend each week when you go to the grocery store or the supermarket. What items do you usually buy? Do you end up buying more than you originally intended? Do you end up with unnecessary items in the pantry or the fridge, only to throw spoiled food away?

One thing I’ve learned over the years is that the “small amounts” you spend at the grocery store can add up so quickly you’ll be surprised at how much when you calculate at the end of the month.

And you know what? I also noticed that if one goes shopping when hungry, one tends to buy more, and here’s the science to prove it.

Not being mindful of “small” expenses

In addition to the bad habit of grocery shopping when hungry, there are those little things that we are used to buying. Perhaps on an every day basis.

That Starbucks coffee first thing in the morning.

Lunch at that nice little cafe.

Drinks after work.

They may not seem much but again, they add up, and before you know it, you’ve gone beyond your budget.

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Not taking care of yourself

habits lead to bankruptcy

Workaholic? When was the last time you went on a vacation? Or maybe you don’t even eat regular meals because there’s just so much to do at work.

How about exercise? Has your lifestyle been sedentary for as long as you can remember?

What do you eat?

If you don’t pay attention to these things which contribute to your health and overall well being, you will probably find yourself facing serious health issues.

Trust me. I’ve been there, and I’ve been in debt for so long because of astronomical medical bills.

Medical bills are the biggest cause of U.S. bankruptcy. Period.

Not paying attention to credit card debt

More than 160 million Americans have credit cards, with about $15,000 debt in average per household.

It’s so easy to swipe that card and not think about the bill until it arrives. It’s so easy to pay the minimum amount and not realize that all you are paying is interest.

And then reality sinks in, and you realize you are flat broke and drowning in debt.

Keeping up with the Joneses

It’s an age old issue. There is human tendency to be as good as their neighbors – or at least, come across that way.

They buy a new car, so do you.

They remodel their kitchen, so you do the same.

As our grandparents and their parents before them have advised, forget keeping up with the Joneses. You’ll only end up living beyond your means, which will in turn lead to financial disaster.

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