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Bad money habits can tarnish your finances.
You have to be serious about protecting your finances at all costs so that you can become financially free and live the life you dream of.
In this post, you will learn:
- What are some bad money habits?
- How do I get rid of bad money habits?
A bad financial habit is basically poor money management or poor spending habits that keep one from their financial goals. If you want to change your life, create wealth for your family and live better, then you must be mindful of your money habits.
Bad money habits
- Spending to impress
This is when you spend money on things you don’t need in order to impress others.
It has become a very popular money spending habit that will jeopardize your personal finances (as well as your contentment).
It’s important to identify the reason behind this bad habit and come to the realization that proper money management and buying what you actually need are so much more important than impressing others.
I want you to feel confident, satisfied and shift your focus to organizing your finances — which is a priority.
You can take a look at the article I published about ‘things I stopped buying to save money here.
2. Eating out too much
If you’ve been following my blog, you’ll know that I do eat out, BUT I limit the number of times and mostly cook at home.
Cooking at home is fun and can save you a lot of money. If you should add the amount of money you spend on restaurant meals for the year, you will be surprised that the small bites add up.
A home-cooked meal is a healthier choice, plus it’s fun. For guidance, this recipe book has over 120 recipes restaurant-quality meals for you to try at home.
3. Not budgeting your money
A budget is a financial plan on how much you earn and how much you are spending over a given period. Not having a budget is one of the bad money habits you should avoid.
Creating a budget can help you to keep track of where your money goes, tells what you’re spending too much on, or even if you need an additional source of income.
4. Ignoring debt
When you ignore your debt and spend money on other things, you are not organizing your finances or prioritizing well. These are bad money practices.
Instead, You can learn how to get rid of debt fast with this article I wrote with Dave Ramsey Baby steps, telling how to pay off debt effectively. I know beginners will love his strategies!
Bad money spending habits
5. Spending on impulse
I use to spend on impulse, heading to the cash register with so many things I didn’t need (probably regret it later). Sometimes I even end up bringing them back to the store (waste of time). Impulsive spending can set you up for financial failure. But wait, there’s hope.
- Stop buying things you don’t need.
- Prioritize your finances and things that are of more importance.
- Stop window shopping until you master resisting the emotion of impulse spending.
6. Not Saving money
Bad money habits involve not saving your money. Saving is self -care. Saving money can help you to increase your finances and cause you to feel more comfortable in the event something unfortunate happens.
When you get paid, ensure to deduct money for your saving account and then your deal with your expenses. You’ll realize that you’ll start treating saving as priority. Learn how to save money fast.
7. Spending more than you earn
When people borrow money on top of their income to engage in continuous spending, you are spending more than you earn. Debt is a killer. Learn to spend wisely so that you can overcome bad money habits.
Poor money decisions will negatively impact your financial goals. We are not about that life over here. We are all about smart money, building wealth, financial freedom, increasing our income and personal growth.
As usual, thank you so much for stopping by! Come again soon!