Are you the type of person where you have to get that new pair of heels, even though you know you don’t have the money to buy them? Or are you the type of person, who when you’re going through an emotional period go splurging online for some retail therapy? Next thing you know you’re knee-deep in credit card debt and can’t seem to find your way out. Do any of these situations sound familiar to you? Well if they do, these are some of the bad money habits that hinder us from financial success.
As the saying goes, old habits die hard, especially bad money habits. However, in order to have a better financial future you have to learn how to curb your spending habits. If not, you’ll find yourself with no savings and spending more money than you earn.
It’s important to stop bad money habits as soon as possible. These bad habits can prevent you from reaching your financial goals and set you up for failure, ultimately, affecting your wealth-building journey. Not budgeting, having bad spending habits, and not saving can leave you living paycheck to paycheck. Also, they can leave you vulnerable to unexpected emergencies.
Now is the time to quit those bad money habits. Not sure what your bad money habits are? Here are a few of the most common bad habits that lots of people struggle with.
1. Racking up credit card debt- This is one of the most expensive bad money habits you can have. Having a credit card with high- interest can cost you hundreds or even thousands of dollars in interest. Not to mention having a high balance on your credit cards can have a negative impact on your credit score.
2. Shopping when you’re bored- Can’t say no to that cute bag? It’s easier nowadays to shop whenever you’re bored, due to online shopping. If you’re not careful shopping when you’re bored can lead you into debt.
3. Impulse purchases- This can cause you to run out of money more quickly than you think. So think twice before you buy something you know you don’t need.
4. Shopping for status- This can be a terrible thing. Sometimes we buy things to impress others. If this is you, then this type of bad money habit can lead you to financial disaster.
How many are you guilty of? So, whether it is shopping to impress others or spending money out of boredom all these things can be bad money habits you have to quit in order to gain financial freedom and success. Remember we’re all on this wealth journey together.
