6 Bad Money Habits That You Need To Stop Now!

If you’re trying to improve your finances, you probably know the importance of seeking sound financial advice and how difficult it can be to come by some of that information.

And, although everyone is quick to tell you what you can do to begin your personal finance journey, they sometimes fail to warn you about things that can negatively impact your bank account. So, that’s why today we’ll be talking about six bad money habits that you need to stop today.

Bad Money Habit #1: Not Setting A Food Budget

I know that you might be wondering why this is such a big deal, but the reality is that if you are not careful with your food purchases, you can start overspending. And it’s easy to see why because expenses such as grocery shopping, dining out, and ordering take out can add up to be a hefty sum. So, it might be beneficial for you to create a food budget.

But how is creating a budget for your food beneficial? Well, having a food budget can really help you to save money because of three things:

• It makes you more aware of your spending.
• You have a limit of how much money you can spend on food.
• You’re more likely to eat the food that you have (because of the limitation of how much food you can buy).

So, try creating a monthly food budget. It should definitely help you save money!

Bad Money Habit #2: Not Planning Your Purchases

A poor spending habit that many of you might have is impulse buying (which I’m also no stranger to). But, despite how harmless it may seem, it can really put a dent in your wallet.

So, to prevent the temptation of impulse spending, you can try the following things:

• Create and bring a shopping list.
• Give yourself a budget or a limit on how much you can spend.
• Ask yourself if you actually need something or do you just want it.

Bad Money Habit #3: Spending Money That You Don’t Have

Another example of a bad spending habit that you might have is spending money that you don’t actually have. And this can come in multiple forms like unpaid credit cards payments and payday loans.

Not only can this habit lead to a stressful lifestyle, but it can also negatively impact your credit score and personal finances.

Bad Money Habit #4: Not Making Bill Payments A Priority

Another bad money habit that you may have is not making your bills payments a priority. This can can make it harder for you to apply for new things, and potentially lead to policy cancellations and account suspensions. Also, at it’s extremest form, delaying essential bill payments for unnecessary purchases can increase the chance of you experiencing credit dings, employment rejections, and evictions.

So, it’s super important to always have enough money for bills and any other purchases that you want to make.

Bad Money Habit #5: Not Saving Money

Another bad money habit that can negatively impact your personal finances is not having any savings. By doing this, you are making it more difficult for you to pay for future expenses such as vacations, down payments, and tuition.

Also, this is a risky move when considering how expensive emergency expenses can get.

Bad Money Habit #6: Not Creating A Budget

If you’re bad with money management, then it might be because you don’t have a budget. But why should you create budget? Making one helps you to know where your money is going and what it’s used for. It also helps you to adequately plan for future purchases.

On the other hand, if you don’t have a budget, you’re more likely to use money in areas that aren’t necessary. And, by not managing your money well, you are increasing the likelihood of you living paycheck to paycheck.

Did we miss any? What are some bad money habits that you need to work on?

Hannah Roberts

Hannah Roberts is the creator of Do. Live. Study. She loves to learn new things and hopes to help others as they go throughout their journey as an adult. You can connect with her below.