how to manage finance: How do you know if you have poor financial habits? Three steps to correct it

Some bad habits affect our physical health, like smoking, nail biting or eating too much junk food. But others take a toll on our financial health.

How do you know if you have unhealthy financial habits, and what can you do to build better ones? Take these three steps.

1. DIG INTO YOUR RELATIONSHIP WITH MONEY

Relationships with money are complex. It isn’t always easy to identify financially unhealthy behavior. But there are some signs you can look for.

Common problem areas include spending more money than you earn, neglecting to start an emergency fund and not saving for retirement.

Taking a financial health quiz can be a good first step toward detecting weak spots. However, our struggles don’t always reflect poor habits or decision-making. Many experts say it’s important to consider the role that systemic issues can play in shaping financial health.

“Not being able to get a living wage, not having medical insurance, having student loans in a career that you can’t find a job. The fact that there’s nowhere in this country that someone who is living on minimum wage can rent a two-bedroom apartment . Those are all systemic issues,” says Saundra Davis , founder of Sage Financial Solutions, a San Francisco Bay Area-based organization focused on providing financial services for low-wealth communities.

If you’re dealing with these kinds of systemic problems, focus on finding support

If your income should be enough to cover your expenses but doesn’t, that’s when you should look…

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