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Most of us have enough income to be able to live comfortably and have enough left for some of the simple luxuries in life, but most find themselves out of money a week before payday. Why? Because they have the habits that help them become poor. These are:

1. Spending indiscriminately.
While it is good to pamper ourselves once in a while, watch closely how you spend your money. Dining out every single day, getting a massage every week, buying that latest gadget can easily drain your wallet and bank accounts. Think before buying, instead of buying your third laptop just because it is on sale, or buying an iPhone 3G S even when your Nokia E78 and Chocolate 3 VX8560 are working just fine.

Impulse buying can easily get you in trouble.

2. Getting a lot of credit cards and maxing all of them out.
Credit cards are handy when you need to buy something and you do not have the money for it, but it is also a good way to spend much more than you can afford. Because you are not spending money, you think that you are not going to worry about it until the next bill comes along, which of course would be too much for you to pay.

Most people end up just paying the minimum amount on their credit card charges, thereby accumulating debt that grows bigger with interest.

3. Not understanding interest and how it works.
When you are in debt, you must understand that the longer you pay it, the worse you are for it. When you prolong paying on a certain debt, like your credit card or mortgage, you waste money by paying for interest. Understanding interest spurs you to fast-track your paying your debt, instead of just letting it go on for a longer period of time.

4. Not having a budget to work with.
A budget keeps you in line to pay what you need to pay (utilities, bills, rent, gym membership), while also telling you just how much money you can burn and still have enough left to tide you over the next few days, or until your next paycheck comes in. Neglecting to budget and account for your money is a sure way to overspend and becoming poor.

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Despite the economic crisis, people still have to eat, and dine out sometimes. You could save money by eating home-cooked meals, but maybe it is a way to convince yourself that things are not that bad, because you can still dine out. Just to be sure you are not forced to ask if you could wash the dishes to pay for the balance of your check, you could use some dining-out-on-a-budget tips.

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Shopping for the latest technological gadget is a very tempting way to spend that hard-earned money during pay day. But do you really need to splurge on the latest version of iPod or iTouch when you have a perfectly functional music or video player? Here are guaranteed ways for you to resist incurring unnecessary gadget update even in the most enticing conditions.

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