Home Career 10 bad money habits that are robbing you

10 bad money habits that are robbing you

75
0

Rachata Teyparsit / Shutterstock.com

Developing good habits helps us focus on the things that most need our attention.

But as you work to get your financial life back on track, you’ll likely find that old, counterproductive habits are derailing your progress. Some of them used to work, but now they hold you back. Others have always been bad.

Breaking bad money habits makes your financial life easier. Below are some bad money habits and tips on how to break them.

1. Having a credit card balance

Unhappy woman with credit card
tommaso79 / Shutterstock.com

Carrying a balance on a credit card is like walking down the street with a hole in your wallet and letting the money drain.

Here’s why: Let’s say you pay $5,000 on a card that charges 15% interest. If you only pay the minimum amount each month, the debt will take decades to pay off and cost you thousands of dollars in interest.

Create a better habit: Devote every spare penny to getting rid of credit card debt. If you have other immediate debts, make a plan to deal with them all. For more tips on avoiding debt, check out “7 easy ways to avoid debt.”

Keep your balance from piling up again by getting into the habit of paying your bill in full every month – no exceptions.

2. Lack of funding of the pension plan

A woman who regrets a mistake
Borysevych.com / Shutterstock.com

There are good reasons to put off saving for retirement. But none of these excuses will matter if you reach retirement age with little savings. And, if you don’t take advantage of your employer’s matching contributions to your retirement plan, you’re missing out on free money every month.

Create a better habit: Start paying close attention to your retirement savings. If you can’t immediately increase the monthly contribution you make to your plan by a significant amount, increase it by 1% per month. Once a year, check the performance of your investments and rebalance your portfolio.

3. Do not buy monthly services

Senior man working on laptop
Images by Monkey Business / Shutterstock.com

Hopefully, you’ve comparison shopped before signing up for insurance policies. And we trust you’ve done the same with your phone, internet and cable services.

But you may not be saving if you don’t check prices every year.

Create a better habit: Put some energy into improving your financial life. Once a year, spend 30 to 60 minutes shopping for monthly services. To make this easier, keep a list of each company’s name, your account number, and your monthly payment amount.

If you feel like you’ll never make it, contact us Bill Katertza service that negotiates on your behalf for discounts on monthly bills. Here’s a report on how it works.

4. Paying for a cable or landline phone

A couple is watching TV
Prostock-studio / Shutterstock.com

Cable TV prices are going nowhere but up. Free and cheaper alternatives to cable make experimentation worthwhile. But will you get out of your rut and try something new?

Create a better habit: Before trying to change, record your browsing habits for a week or two to see how and if you use the services you have. If streaming sounds like a legitimate option to you, check out “12 streaming TV services that cost $20 a month — or less.”

The same for a landline. If you can, ditch the landline and use only cell phones. If that seems too radical, refrain from using the service for a month – or even a week – until you’ve checked out alternatives.

5. Ignoring coupons and deal sites

Excited woman showing thumb up while using laptop
fizkes / Shutterstock.com

If you’re not using coupons and checking daily deal sites, you’re spending too much. However, you still need to be disciplined when bargain shopping so you don’t sabotage your good intentions with impulse purchases.

Create a better habit: Give up bad habits in small pieces. Try just one deal or coupon site. Money Talks News Deals Page, for example, new sales and coupons every day on clothing, shoes, electronics, tools, and more.

6. Too safe investing

A victim of identity theft on a laptop
Lensw0rId / Shutterstock.com

Safe investing is important. But there are safe ones, and there are too safe ones. Keeping all your money in risk-free accounts means that inflation will slowly but surely erode your purchasing power.

Create a new habit: Do not give up all bad habits at once. Pick one and focus. For example, make managing your investments a priority. Money Talks News founder Stacey Johnson offers some tips on how to get started in “Ask Stacey – How do I invest in a mutual fund?»

7. A passion for lattes

Happy woman walking with phone and coffee
Dean Drobat / Shutterstock.com

This $4 latte is killing your budget. One such latte every workday adds up to $20 a week — potentially $1,040 a year. If you tip a dollar each time, you’re spending $1,300 a year. There’s definitely something you’d rather be doing with that $1,000.

Create a better habit: Replace old habits with ones you enjoy. Lattes are a way to treat yourself, so find treats that won’t break your budget.

8. Living without an emergency fund

A man holds two buckets that collect the water flowing from the ceiling.
Andrey_Popov / Shutterstock.com

If you don’t have an emergency fund, your life is a brutal act with no insurance. Emergencies are inevitable. Life is full of them.

Create a better habit: Make a commitment to change. Write down your promise and put it where you will see it. This will strengthen your resolve.

Make the commitment and watch your savings grow. If needed, take on a few hours of extra work each week, whether it’s working overtime or looking after the neighborhood dogs. For more tips, check out “9 tips to build an emergency fund today.”

9. Retail purchase

A person is upset about high prices
Stokkete / Shutterstock.com

Paying a retail markup is like putting matches to a pile of money. Smart shoppers find ways to avoid this.

For example, the value of a new car drops rapidly the minute you drive it off the dealer’s lot. Therefore, buy one that is gently used instead.

Create a better habit: If you feel pressured to keep up with your friends or neighbors, ask yourself what it’s costing you. Stay away from malls and specialty stores unless you are researching products. Read about online pricing so you know a good price when you see one.

And check out this post: “41 things you should never buy.”

10. Using shopping as entertainment

A woman's shopping gift card
Dean Drobat / Shutterstock.com

You may know people with compulsive shopping habits. Perhaps you are one of them. Spending creates an addictive high, wreaking havoc on your budget and your family’s financial security.

Create a better habit: Try to spend fast. Remove your name from catalog listings, don’t go shopping, and hang out with friends whose ideas of fun don’t include shopping.

Check out the “11 tips and tricks to keep you from overspending” for more tips.

Disclosure: The information you read here is always objective. However, we sometimes get compensated when you click on links in our stories.

Source link

Previous article6 Key Benefits of Wealth Management Software to Help Small Businesses Succeed in the Future – 🍉 FangWallet
Next articleWhat’s happening with energy and where gasoline prices might go