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It’s so easy to fall into bad Money habits, especially when you don’t even know you’re making mistakes.
Life happens, and sometimes you can’t help these mistakes. But if you keep doing them over and over without learning good Money Habits to replace your bad ones, you’ll be trapped in the loop.
You can learn what your Bad Money Habits are and slowly start replacing them with better habits to start digging yourself out of the hole you’ve found yourself in.
I’d advise you to start slow and not jump in trying to change all of your money habits at once cause that’s overwhelming.
Start with one habit and start slow. It might take awhile for you to save up money to pay off your credit card or start an emergency fund, and that’s perfectly okay and normal.
The important thing is that you get started.
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Bad Money Habits you Need to Quit Immediately
Using a Credit Card when you Don’t have the Money
The first bad financial habit you need to stop is using a credit card when you don’t have the money to pay it back.
If you have to use your credit card for bills or other necessities, you need to delegate. If you had been spending money on going out or unnecessary things, you need to stop and make sure you actually have the money.
If you don’t have the money to pay off your credit card, you can find ways to make extra money.
If you keep putting things on a credit card when you know you don’t have the money to pay it back, the interest and payments are just going to keep adding up and adding up and you’ll find yourself under a pile of debt.
Try to only use a credit card if you have the money in your bank to pay it back ASAP.
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Not Having an Emergency Fund
I didn’t have an emergency fund for a long time, but looking back, I realized this was a key financial mistake.
What happens if your car breaks down or you have sudden medical bills to pay? I’m not trying to scare you, but things can also happen. Especially when you least expect it.
That’s why you need to have some money set aside just for this reason. You’ll end up saving yourself a lot of money in the long run by not having to use credit and pay fees and interest.
Not to mention, it just feels good to have a safety net.
See Also: Money-Saving Challenges You Need to Try
Not Having a Savings Plan
Not having a savings plan or a budget is a really bad money habit a lot of people have.
Most people just “save” the money left over after all of their spendings, when in reality, that’s not saving you anything.
People who are broke spend more money than they bring in, and starting a budget is a great way to put a stop to that.
With a budget, you can see where your money is going and where you can make cuts.
Always Buying Things You’ll Never Use
Are you one of those people that go into Target or Walmart with one thing you want to get and end up coming out of the store with your arms full?
Me too. That’s a money mistake most of us have made.
You need to stop that right now, especially if it’s something you’re never actually going to use.
Please don’t buy something just because it’s on sale. If it’s something you needed anyway, go for it. If you’re buying it just for the good price, but realistically you won’t use it, don’t buy it.
Not Comparing Prices
It takes a lot more time and effort, but not comparing prices is considered a bad money habit.
Whether it’s car insurance, a vacuum cleaner, or whatever you’re looking to buy, start comparing prices between stores and brands. It may seem like you’re only saving a little when you first start, but it really adds up.
Also see: 18 Money Habits to Start in your Twenties
Not Using a Cashback Program
If you’re gonna grocery shop anyway, why not get some cashback for it?
I didn’t use cashback for a long time because I didn’t think it was worth it and I figured it might be some kind of scam.
Turns out, I was wrong, and I wish I had been using it this whole time.
I personally use two cashback programs to buy extra things like clothes or makeup when I’m trying to save up money.
Ibotta
Ibotta is a super easy and convenient cashback app to use. All you have to do is make a grocery list of select products in Ibotta, go grocery shopping, scan your receipt, and you’ll get cashback in the form of a gift card or money in your bank.
Ibotta will save you a ton of money in the long run.
You also get a $20 sign up bonus when you try the Ibotta app here!
Fetch Rewards
I like to complement Ibotta with Fetch Rewards. I actually just used Fetch rewards to pay for $10 of a recent Shein order.
I hadn’t even been using it that long, and I got that $10 Visa card super quick.
All you have to do is scan your receipt and extra points for buying certain products.
You can sign up for Fetch Rewards here or just sign up using the code 35AU3 to get a bonus of 2,000 points when you scan your first receipt!
Using Shopping as Retail Therapy
The moment I start feeling a little down or had a bad day, I’d find myself online shopping. Using shopping as retail therapy (in excess) is a critical financial mistake.
Of course, every now and again you can indulge a little and go shopping, but not every time a small inconvenience happens.
Instead, try something else, like going outside, exercising, or doing a self care activity.
Not Paying Bills on Time
Not paying bills on time is probably the biggest money mistakes you can make.
Once you fall behind, it gets harder and harder to catch up.
If that has already happened to you, get to the root of why it happened. Did you overspend somewhere else? Do you need to make extra money?
After you figure it out, set aside money specially for bills as a part of your budget.
Not Keeping Track of Subscriptions
Nothing makes me more upset than when I start a free trial and forget to cancel it so money comes out of my account.
Be sure to keep track of what subscriptions you have. You may even have subscriptions you’ve forgotten about that’s still sucking money out of your account.
Evaluate if you really need all of your subscriptions or if you can cut some out.
Always Buying Things New
The last bad money habit you probably have is always buying things new.
Buying things new is nice, but not necessary.
You can still get good quality products second hand. I like to go to Goodwill and other thrift stores for clothes. Also, consider getting your electronics refurbished to save some extra money.
Bad Money Habits Summed Up
Some things you can do to keep yourself from falling into debt are using apps like Ibotta, creating a budget, and in general stop spending more than you earn.
Don’t forget to sign up to get the free side hustle Ebook to make extra money.
The post Bad Money Habits You Need to Quit Immediately appeared first on Thriving Wonders.
