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Most Popular “Bad Habits” That Lose Money… How To Avoid Them?



Most Popular “Bad Habits” That Lose Money… How To Avoid Them?

Study: Credit Cards Don’t Help You Save

A group of bad financial habits that push their owners towards hard times after squandering their own money and it can lead them to accumulate debts, which necessitates the need to change these habits and turn them into positive ones. Financially secure.. So which of these habits are the most popular? ? And how can avoid?

Arab societies are filled with many customs that increase the public expenditure of families, and some do not realize their burdensome financial effects on family budgets in normal times, but in times of economic crises – such as the current period – many of these families feel the need to revise their customs to cope with the challenges posed by these crises.

Random cost

Most of these habits stem from a problem called “the inconsistency of spending and financial management,” as Jordanian economist Hussam Aish talks about in a “Sky News Arabia Economy” exclusive report, suggesting that randomness exists. The Arab family is often characterized by ingenuity in its spending structure, “luxury consumption” that does not meet the basic needs of the family, which often creates a gap between income and expenditure.

While some households suffer from spending deficits that exceed their incomes, the economist notes, meeting the needs and bridging the spending gap many families try to fill that deficit through credit or indirect borrowing. It reflects costs.

The economist listed some of the worst spending habits of the Arab citizen, which can quickly drain his income:

  • Unfavorable expenses: Demand for offers in shopping malls and the urge to buy everything new (even if there is no urgent need) like modern mobile phones.
  • Most of these features cost Arab families huge expenses, leading to inability to pay expenses or debts.
  • Shopping as part of family fun: Buying things can make their prices seem cheaper!
  • Some people buy things that they don’t use for a long time, thus wasting their money, or one may not be able to properly store food items that are bought in excess, causing them to perish and lose the value of the amount paid for them.
  • Social media has also played a role in changing the habits of citizens. For example, many families are led to buy the latest versions of mobile phones to look different from others or to satisfy their inner desires, leading to high spending.
  • Lack of proper planning: For example, a family may use more than one car (be it private or taxi) to go to nearby places (although one car can be used to save money) or frequent one place (like malls or supermarkets). Different requirements are different for one time purchase.
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One of the most important expressions in this context is “In houses, families usually gather in a certain place inside the house, but the lights of all the rooms are used, which is consumption and pressure on the general electricity load of the state, in addition. In addition to the increase in the cost of electricity bills for the family and the lack of interest in maintaining the equipment.” and sanitary and other equipment in the home, which may lead to damage and incur additional costs,” says Ayish.

Appearance fever!

He adds, “Many Arab families are concerned about aspects that lead to a lot of consumer spending without real income, which does not serve the real interest of the family or the individual. Also, the Arab family does not think of income as a ceiling for spending, but as a means of spending without setting a ceiling.” Or in connection with this expenditure, some may spend their entire salary in one instance, leaving them with actual bankruptcy for the rest of the month! .

At the same time, “Many members of the Arab family are engaging in investments they don’t know how to handle, especially because of the lure of quick profits that take away their money and perhaps their savings,” the economist notes. So investing money in wrong place and throwing it in improper ways is one of the bad habits.” The result is loss of savings and entry into other problems.”

According to Ayeesh, personal debt in Jordan is close to 12 billion dinars, and the benefits of this debt are increasing dramatically, reducing a portion of these bad habits that lead to personal debt. What the household spends on its basic needs to pay installments and interest, it rises after raising interest rates.

The purchasing power of income decreases dramatically, while income does not increase significantly with the expansion of needs, which leads to the appearance of a gap between expenditure and income, all of which are decreasing. Return from additional sources of income that the family may seek to improve and increase income.

Any change from the traditional spending environment affects the financial balance of the family and leads to problems related to how to spend it, the economist notes. “What is in the unseen,” do not think of saving, so that everyone suffers from a deficit between his income and his expenditure.

Economists: The card in your wallet could ‘destroy’ your future

Irrational spending.. and daily shopping

Mourad Kouachi, an economist from Algeria, told “Sky News Arabia Economy” that one of the most dangerous habits that cause citizens to lose a large part of their money is:

  • “Irrational or willful spending,” especially during the seasons leading up to Ramadan, is marked by an increase in the amount of waste, and large amounts of leftovers end up in the trash!
  • Misguided shopping at malls and major shopping centers, especially those that encourage discount offers, is another habit that can lead to losing money, and do it on a daily basis to avoid missing out on offers!
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The economist points out that the spending level of the Arab citizen has increased compared to last year and that families are suffering from inflation, but despite this increase in spending, the amount of goods received is lower than last year. High rates of inflation and prices and the majority of Arab families, despite their financial capabilities, wages and pensions increased, but with the increase in inflation, costs increased in light of the current economic pressures.

The Algerian economist advises consumers to have a true consumerism and marketing culture, most developed countries point to the so-called “home economics” in the school curriculum, an organizational plan for managing the family’s economic and financial affairs. People can get the goods they need at the right time at specified prices and quantities. Therefore, the consumption culture of Arab countries must be changed.

Study: Credit Cards Don’t Help You Save

Culture of consumption

In this context, economist Mustafa Badra, in exclusive reports to the “Sky News Arabia Economy” website, points out that the consumption culture of Arab society is different from European society, explaining that the Arab citizen has a habit. – Purchases Although income levels are high in Europe, the citizen rations the purchase of food items in particular.

He continues: Arab families do not have a culture that controls the purchasing process, and most citizens buy luxury goods, such as cars and accessories or mobile phones, while the consumer market in Europe is limited.

Reports on Arab households’ food consumption rates indicate that the amount of consumption and spending in different seasons and occasions doubles in Arab households (“Fitch Solutions” database, which shows average household expenditures. Among 15 Arab countries, the Gulf countries top the list, spending an average of $1,415 per month on food). .

“Visa Card”

Regarding bad financial habits, the economist talks about the impact of electronic cards in various forms, which encourage consumption instead of cash, stressing that this habit is one of the consumer mistakes anyone makes in terms of overconsumption.

Emphasizes the factor of “individual consumption” in bad habits, because sometimes the thing is unusual and there is a process of exploitation by a section of citizens who agree to buy large quantities of food items using these cards. They do not need them (for these things).

It also shows that the level of inflation affects the level of spending because it increases demand and the need to buy (and with the intention of hoarding for fear of higher prices), but things are negative because of scarcity. supply.

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According to the latest edition of the Economic and Social Developments in the Arab Region study by the Economic and Social Commission for Western Asia (ESCWA), inflation in the Arab region reached 14 percent in 2022 and is expected to decline further. Two years to reach 8 and 4.5 percent respectively.

Priorities change

On the other hand, financial market expert Hanan Ramses, in exclusive reports to the “Sky News Arabia Economy” website, says that consumers in the Arab world have different behaviors and preferences than before due to the global crises he was exposed to. For example, pointing to a culture where the storage of goods previously associated with seasons and holidays, now they have become everyday storage due to global crises in countries and rising commodity prices. High inflation rates and a decrease in the purchasing value of money.

He points out that most people have a fear of economic recession or the spread of epidemics and diseases, so there is a tendency to keep money in its physical form so that they can meet their obligations on time, explaining the sense of security. And while stability drives the client back to investing, fear drives him to safe havens.

At the same time, he points out that the Corona crisis has changed the culture of buying and supplying needs, pushing most citizens towards the online market and continuing to deal with discounted online offers in addition to a group’s laziness about direct shopping. , and as a result, many people lose part of their income.

Also remember that the recent economic conditions have changed the citizen and made him spend a reasonable amount to meet his needs and obligations. For occasions.

Ramses also explains that the spending tendencies of citizens differ from one country to another (..). At the same time, it tracks down several tips on how to achieve financial stability and security:

  • Prefer to spend throughout the month.
  • Achieving a balance between a person’s needs and wants.
  • Before spending the money, a surplus can be ensured so that the person saves it for investment and then starts fulfilling his needs.
  • If the salary is weak, it is necessary for the person to look for another source of income according to his needs. If he relies only on the monthly salary, it will not be enough for him to achieve a desired object. Saving is difficult, and surplus is earned by earning enough for daily living.
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Inflation in the euro zone fell to its lowest level in a year



Inflation in the euro zone fell to its lowest level in a year

Economic data released today on Friday showed that the euro zone’s core inflation rate fell to its lowest level in nearly a year this month, bolstering expectations that the European Central Bank will keep interest rates on hold at its next meeting to assess. The consequences of an unprecedented campaign to raise interest rates throughout the past.

European statistics agency Eurostat reported today that sales, excluding highly volatile items such as food and energy, fell to 4.5% this September, while analysts polled by Bloomberg News had expected a drop of 4.8%, compared with 5.3%. In the month, in the past.

At the same time, the headline inflation rate eased to 4.3% this month from 5.2% last August, the lowest level in nearly two years and well below expectations, thanks to a fall in energy prices. Accelerating rate of rise in prices of services.

The data released today is a strong indication that core inflation, a key measure for the central bank’s monetary policymakers, is on a downward path following a period of statistical deterioration over the summer months.

Despite the decline, general and core inflation rates have been more than twice the central bank’s target of 2% annually.

At the same time, there is a wide disparity in inflation rates between the euro zone’s twenty member states, with the inflation rate in Germany falling to its lowest level in two years this month, while the rate in Spain rose by more than 3. % again.

The current September consumer price inflation rate showed a new decline, reaching its lowest level in more than a year and a half, with the Italian statistics office saying the inflation rate fell to 5.3 for the current month. % y/y compared to 5.4% last month, while the core inflation rate, excluding highly volatile food and energy prices, fell to 4.6% this month, down from 4.8% last month.

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Meta unveils new artificial intelligence products



Meta unveils new artificial intelligence products

Mark Zuckerberg, CEO of MetaPlatforms, has introduced a group of new products powered by artificial intelligence, including smart glasses that can answer questions and broadcast live on Facebook, as well as “bot” programs to create images and an advanced headset for virtual reality. .

Zuckerberg described the products as bridging the virtual and real worlds, and asserted that low-cost or free artificial intelligence in what Meta offered could be integrated into daily routines.

The MetaQuest virtual reality headset is one of the most popular in the burgeoning virtual reality industry, and company executives described it as the best value in the industry, marking the imminent launch of an expensive headset from Apple.

Speaking from the central courtyard at Meta’s sprawling campus in Silicon Valley, Zuckerberg said Meta’s new generation of Ray-Ban smart glasses will launch on October 17 for $299.

The device will have a new assistant from Meta that works with artificial intelligence and will be able to live-stream what the user sees on Facebook and Instagram, a feat compared to the previous generation’s ability to take pictures.

Earlier during the presentation, Zuckerberg said that the latest mixed reality headset (Quest) will start rolling out on October 10.

Zuckerberg’s statements came at the MetaConnect conference, the social media company’s biggest event of the year and the first to be held in person since the start of the Covid pandemic.

It launched the first consumer-oriented generative artificial intelligence products, in which a chatbot (meta AI chatbot) can generate text responses and realistic images.

Zuckerberg emphasized: “It’s not just about answering inquiries. It’s about helping people do things for entertainment and interacting with the people around you.”

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The US economy is between the trap of recession and stubborn inflation



The US economy is between the trap of recession and stubborn inflation

Debate continues among officials and big banks over whether the US economy will fall into recession, as analysts expect the economy to slip into recession as it faces stubborn inflation and raises interest rates to record highs. .

Expected growth

Data for the final reading of US GDP showed the economy grew by about 2.1%, which is the same as the second reading. In the second quarter of 2022. Fixed income investments showed a growth of around 5.2% in the three-month period ended June, compared to 3.1% in the first quarter.

US exports fell 9.3% in the second quarter, and imports fell 7.6%. As for personal consumption expenditures, they rose about 0.8%, compared with a 3.8% increase in the first quarter.

A survey showed that business activity in the U.S. is close to stagnating in August 2023, with growth hitting its slowest level since last February, as demand for new business in the largest services sector has weakened.


Standard & Poor’s Global said – in its preliminary composite purchasing managers’ index for the US, which tracks the manufacturing and services sectors – the reading fell to 50.4 points in August from 52 in July; This marks the biggest decline since November 2022.

Although August’s reading showed growth for the seventh month in a row, it was slightly above the 50-point level that separates growth from contraction, in light of weak demand for manufactured goods and services.

For months, a strong labor market and strong consumer spending have eased recession fears, and both factors led to an upward revision in GDP growth expectations, but the data paint a less optimistic picture of the economy.

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Recession is possible

Abhilash Narayan, director and chief investment strategist at Standard Chartered, believes the probability of the US economy entering recession next year is 50 to 60%.

In an interview with “Eqtisad Al-Sharq”, Narayan cited three reasons for this, the first being that consumer spending, which has been a fundamental factor in the strength of the US economy, will slow down as savings run out, the second is the risk of a government shutdown in October, which will limit government spending, and the third is that the 18 Date strong interest rate hike. Last month, the Federal Reserve showed its negative impact on US economic activity in 2024.

“Healthy” mode

On the other hand, Treasury Secretary Janet Yellen said the US economy shows no signs of an imminent slowdown.

Bloomberg News quoted Yellen as saying in an interview with CNBC last week that “I don’t see any signs that the economy is headed for a recession,” and that while the labor market may have contracted somewhat, the market is still there. A “healthy” situation. Industrial production is increasing and “inflation is falling.”

Yellen said she is watching for several developments, including the potential impact on consumer spending as student loan payments resume after a multi-year hiatus.

He noted that despite the rise in interest rates, credit is still available and “it has made a difference in some sectors”. He also said that he expects crude oil prices to stabilize.

Interest rates

Commenting on the decision to stabilize US interest rates in September, US Federal Reserve Chairman Jerome Powell said the bank was ready to raise interest rates at any time to push annual US inflation to 2%.

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The chairman of the Reserve Bank emphasized that despite factors beyond the central bank’s control, there is a good chance that strong interest rate hikes will not push the US economy into recession.

Moderate depression

Central bank experts expect the potential economic consequences of recent bank developments to lead to a “moderate recession” later this year. Bank failures can make borrowing more difficult, reduce spending and impact economic activity, meaning lenders may tighten their standards in the wake of recent bank failures.

Real estate sector

Mortgage interest rates in the U.S. rose last week to their highest level since 2000, negatively impacting already low home-buying applications.

The average 30-year fixed mortgage rate rose 10 basis points to 7.41% in the week ended Sept. 22, according to Mortgage Bankers Association data released Wednesday. As a result, the home purchase order index fell to 144.8, one of the lowest readings in decades.

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