Breaking unhealthy money habits is difficult. The longer you’ve done something, the harder it is to change.
Follow along as we review some of the most valuable tips to follow when you want to get back on track with your financial goals. Start saving and getting rid of unhealthy money habits that are digging you deep into trouble.
We often experience bad financial habits out of lack of knowledge and generally just bad money habits. Crushing these unhealthy money habits will put you in control of your financial situation.
Smash it! Break it! Crush the bad habits. So what are bad money habits? Many of us get ourselves in big trouble with credit cards.
Consider your obsession with credit cards. What makes credit cards so appealing?
Using your credit card is so convenient until you get the bill at the end of the month.
Credit cards operate like loans but with high-interest rates.
If you don’t pay off the balance each month, every dollar you spend accumulates a fee, and some of these fees can be 25 percent or more.
Over time, your balance grows, and you end up paying a lot of interest.
Some get trapped and go into debt if they are not careful.
Typical minimum payments on a credit card that has reached its balance can start in the hundreds. Avoid this trap in the first place.
Credit cards can get you in debt if you’re not careful. But remember, you can take control of your situation. Everything starts with making a decision and then following through.
Breaking bad habits and staying informed is the best place to start.
How can you stop spending on unnecessary things? Most of us are trying to save some money, right?
To save, we need to learn how to break bad spending habits, like buying unnecessary items.
I remember my grandfather, he was an expert at buying things he didn’t need.
Collections of things in his closet that he never used or needed in the first place.
At the end of the year, he wrapped the most random things up and gave them to us as presents.
I remember, when I was five years old, he got me a paper shredder. How many kids need a paper shredder?
Everything got donated to the local thrift store.
Moral of the story, stay away from buying things that you don’t need, just because they are on sale.
Credit card diets are the way to go, especially if you are typically someone like my grandfather, who was a habitual swipe everything guy.
Next time you go shopping, try shopping with a list and a plan, only buy what you need using cash.
1. Start budgeting
A budget can help you see where your money is going. Budgets keep you on track and focused on your goal.
Mindless spending leads you into a financial mess.
Credit card payments and misuse of money can become tragic if not controlled and understood.
Breaking bad spending habits is essential, and budgets are the way to get control.
Budgets give you an overall view of what you need to pay and an overview of what you have leftover.
Let me go over a few reasons why people quit their budgets:
- Most people quit using a budget or never start because it feels like too much work.
- Many people don’t pay themselves.
Do you have your eye on that pair of Gucci sunglasses? They cost $400, and you really like them but don’t have the money right now to afford them.
Imaging how great you would look wearing those shades.
Your friends will really admire you. Doesn’t this sound good?
Most people shop for status. They think about how much their friends will be impressed with the expensive stuff they purchase.
In reality, nobody cares about your sunglasses. Most likely, they won’t even notice.
Shopping for status is an unhealthy money habit that gets many people into debt each year.
More Americans fall into this trap each year. Especially with social media so popular, it’s easy to want the latest trends.
Comparing yourself to others, seeking self-pride in the things you have, and making a social community with people that only appreciate you for what you have is destructive and common more and more, especially among younger generations.
Spending out of boredom is typical for most of us.
Instead of doing chores you’re supposed to do, you decide to go walk around Target, they have all the cute new shoes on display.
An article written in the New York Times covers an actual subject known as the boredom economy. Spending money out of boredom is disastrous!
Alternatively, skip that trip to the store. Find a hobby or check your to-do list, there might be something that needs to get done that you’ve been putting off.
Ever heard of these new offers that stores have now called Buy now pay tomorrow?
It’s just like another credit card without having an actual credit card account. Remember, if you buy something today and pay tomorrow, you still have to pay.
Find a hobby or activity that will keep you away from boredom shopping.
There you go; crushing those unhealthy money habits is crucial for your financial future. Our tips are solutions for your success in breaking bad money habits.
Hopefully, these tips will help you move forward in your journey!
Are you looking for more ideas on how to start making more money and spend less?