Almost everyone can relate to that feeling of buying something you have always wanted just this once. You rationalize the purchase by telling yourself you will never do this again, at least for another year. But then time passes and many people who gave into this urge find another deal or another rare find that brings them to the same rationalization. This is how the cycle of bad financial habits starts and it does not always end well. If you have any questions about bankruptcy or find yourself struggling financially, talk to a Tennessee bankruptcy attorney who can help.
Bad Tennessee Financial Habits
One of the biggest bad Tennessee financial habits is buying things just this once and convincing yourself you will never do this again. The problem is not that you made a risky financial decision, but that the chances of this risky financial decision happening again within a year is more likely. Many people find themselves falling into a downward spiral of risky spending after their first risky purchase because the same justification is used each time, especially when people feel like enough time has passed in between.
Buying things just because you are bored is another habit many people fall into. With the coronavirus pandemic going on and many people being stuck at home with nothing to do, you cannot really blame anyone for falling into this habit. Over time, shopping when you are bored can turn into a hobby that turns into a habit of spending money each month or week.
Some people who use credit cards develop the tendency to hide their debt and credit card statements from themselves to avoid feeling shame or stress. This can be a dangerous habit to develop that can lead to unforeseen financial disasters. Knowing where you are financially is vital for avoiding financial catastrophes like bankruptcy.
What Are Some Good Tennessee Financial Habits?
After looking at so many bad financial habits you might be wondering if there are any good Tennessee financial habits you can use to improve your finances and fight the bad habits. Good Tennessee financial habits are not only good to learn for yourself, but they are also good to invoke in your children, who will eventually be making financial decisions on their own.
The first good financial habit to develop is learning to differentiate between financial needs and wants. Financial needs are financial necessities like bills or medical expenses. Food or going out to eat can also count as needs because we all need to eat but wants are more like going to the movies or buying a new TV. Tennessee budgeting techniques are also important to learn so you can prioritize bills above unnecessary spending.
Putting money into savings is also a helpful habit to build that can save you during stressful financial times.
Bankruptcy Lawyer in Chattanooga, TN
Building new financial habits is no easy task. try reaching out to our attorneys in Chattanooga, Tennessee and North Georgia if you find yourself close to bankruptcy. Contact Tom Bible Law today at (423) 424-3116 to speak with a Bankruptcy lawyer in Tennessee for a free consultation. Our Tennessee bankruptcy lawyers are located in Chattanooga, Kingsport, and Tullahoma.