WORRIED ABOUT YOUR MONTHLY BUDGET? 10 TERRIBLE WAYS OF SPENDING MONEY YOU SHOULD AVOID

No matter how conscious you are about your finances, particularly when you are living abroad to earn and support those dependent on you financially through online money transfers, you will somehow indulge in some bad spending habits.

Being away from your family and with no one around you to keep a check on your routine and life, you are likely to adopt habits you must avoid otherwise.

One of the huge effects of not having someone to oversee your activities, particularly when you are financially independent in a faraway land, is that you will develop some terrible financial habits.

This blog will shed light on a few ways that you must avoid for better financial management.

A brief background about the bad spending habits you are likely to indulge in as an expatriate

It is difficult for you to avoid the certain appealing moments created for you when you are residing in a foreign land as an expatriate. For example, a hang-out plan with friends, a meal in an eatery, or a movie night with friends can be irresistible for you.

Doing all or one of these activities might appear to be financially harmless. Still, these activities will cost you dearly at the end of the proverbial day, especially when you have not budgeted for them.

This kind of behaviour can lead to financial worries that transform into the inevitable from the expected.

And bear in mind that getting carried away by such moments is far too easy when you are away and alone.

Global expatriates and their financial contributions in statistics

• About 230 million expatriates are present worldwide, up from 73 million in 1960.

• Expatriates form 3.1% of the total global population, and about 49% of the total expatriates are women.

• Total global remittances are forecast to reach $774 billion in 2022, with a growth rate of 5.9%.

• Reports have estimated that global remittances will reach $810.79 billion in 2023, with a growth rate of 4.7% by the year-end.

None of these expatriates can afford to indulge in the bad financial habits that are discussed below. But if they do, they worry about their monthly budgets, on the one hand, and essentially cut the necessary expenses, on the other.

What are the bad financial habits that I must avoid as an expatriate?

You must remember the purpose for which you became an expatriate in the first place. And in most cases, it is to support your family financially through money transfer(s) online from your country of residence.

A slight deviation from this purpose can lead to bad spending habits.

Avoid impulse buying

Many people fall prey to impulse buying without giving it a second thought. You essentially buy things you have not planned and budgeted for and not considering whether it is on sale or not and then end up justifying your purchase. This is a terrible financial habit. Avoid it.

Avoid using credit cards for more points.

You get more points with excessive use of your credit card. But this can lead you to indulge in securing more debt to purchase more and get more points; indeed, getting deeper into debt in pursuit of credit card points is not worth it.

Avoid the race to be equal with others.

It will be financially bad for you if you purchase the latest model car or a new phone simply because others have them. It can overshadow your budgeting goals and force you to cut on the necessary expenses. Spend money according to your strength, not others!

Avoid shopping to elevate your mood.

Going for mood-based shopping sprees is another terrible spending habit. If you are feeling low, there are many ways to boost your mood. You can watch a movie, talk to your family back home or simply read a book. Going shopping to boost your mood must be avoided.

Avoid spending on convenience.

It will take a lot of money to buy food from outside rather than cook meals at home. You normally fall victim to this kind of bad spending habit, where your focus is on your convenience rather than your money. You may prefer finance over convenience.

Avoid spending on lifestyles.

Living a simple life can be beneficial in many ways. It can have a deeply positive impact on your finances as you can manage to meet the basic needs of a healthy living in a viable manner instead of spending on pomp and show. 

Avoid ignoring your debt.

Make sure you never ignore your debts. Keeping in mind that you have to pay debts sooner rather than later helps you keep an eye on your income and expenses and better manage your budget and finances.

Avoid ignoring your budget.

You must set a monthly budget and follow it strictly. Otherwise, you will be unable to track your income and expenses and likely be trapped by spending on things you must avoid.

Avoid spending all the money.

You may fail to save money if you feel you will save it after you have met all the expenses. Rather, the golden saving principle is to set aside money for saving first and then spend the remainder.

Avoiding your future

Make sure to think about the future each time you get your salary. All your financial management comes down to what you are planning for your financial future. So, be serious about it.

Keep an eye on these bad financial habits to manage your finances better.

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• Global expatriates

(Expat Population Worldwide – Ute's International Lounge (utesinternationallounge.com)

• Global remittances 

(Global Remittances Forecast 2022 - Insider Intelligence Trends, Forecasts & Statistics)