It’s a well-known fact that bad habits tend to die hard. This is especially true when it comes to our finances. It’s time to start breaking those bad money habits if you find yourself with empty pockets and a ton of unnecessary debt. ⁤⁤⁤

bad money habits, save money, good money habits

In this post, we are sharing 4 money habits that will keep you broke and better money habits to replace them with.

It’s not always easy to completely switch up your money routine.⁤But here’s the thing: with the right mindset and a little bit of help, you can start transitioning to better money habits. ⁤

#1: Stop accumulating debt on credit cards

Yes, there are advantages and disadvantages to those plastic cards. They allow us to use one hand to swipe to buy almost anything we want.

Get Financially Literate In 2024 Reading One Email Per Week

Subscribe to Only Finance, the most popular newsletter presented by Priceless Tay

We respect your privacy. Unsubscribe at anytime.

But they could also put us in a big financial hole if we’re not mindful.

 Credit card debt is a huge problem in the United States. According to recent data, the average credit card user in America owes $6,568! While using credit cards to purchase everything you want might seem like a good idea, if you’re not careful, you might end up paying hundreds or even thousands of dollars in interest.

Flip the Script:

By paying off your entire balance each month, you can prevent debt from accruing interest and save money in the long run. My personal motto when it comes to buying anything is: If you can’t afford to purchase it twice, don’t buy it once. It’s a straightforward but effective rule that has helped me avoid impulsive purchases and maintain my money goals.

#2: Cut the Impulse Spending

You know those small treats that tempt us each time we walk by the grocery store checkout counter?  They deliberately choose to exist. This trick is used by retailers to try to encourage us to spend more money before we leave. Although impulsive purchases don’t seem like much at first, they pile up over time. It can build up to the point where you might not have enough money to cover bills by the time you get paid again. Let’s say you are an ordinary Joe who spends about $100 a month on impulse purchases. This amounts to over $1,000 a year!

Flip the Script:

I’ve found that the 24-hour rule works well. Before adding something immediately to your cart, take a moment to breathe. Instead of buying anything right away, think about leaving it in your cart for the entire 24 hours. This gives you some time to consider if you actually need it. I promise you that by taking a moment to step back, you will end up saving a ton of money.

#3 Not Tracking Where Your Money Is Going

Your finances won’t improve anytime soon if you’re not monitoring your income and expenses. You won’t be able to save consistently without a budget, which will hinder your efforts to reach important money goals like setting up an emergency fund or making retirement plans. You might unintentionally spend money on pointless purchases like takeout food and subscriptions, which can have a major impact on your finances as time passes. When you use a budget, you can clearly see where your money is going and flowing and make a plan to improve your financial situation.

Flip the Script:

Are you ready to finally let go of your bad money habits? I have the perfect approach for you. Take a look at the Finesse Formula, my new budget template. This budget template offers a thorough and clear financial picture. It helps you make smart financial choices by providing you with a complete breakdown of your income, expenses, debt, and more.  Budgeting doesn’t have to be restrictive; it can be used to empower you to reach your financial goals.



GET THE TEMPLATE

#4: Shopping When You’re Bored

The rise of online shopping has made it easy to get into the habit of overspending, which, if not controlled, could result in unnecessary debt. Taking up a new activity can be an excellent way to avoid the never-ending scrolling and the need to buy unnecessary items. Shopping secondhand can also be a cost-effective choice, with discounts of up to 40% on a variety of goods like clothing, jewelry, and electronics. My favorite is hitting up a local consignment shop or using apps like Depop! Make the most of offers, cash-back apps, sales, clearance racks, and discounts whenever you shop at stores. Download the Savvy app to see what discounts and cashback offers you have on your credit cards! You can end the cycle of pointless buying and improve your financial well-being as a whole by using these tips.

This post was all about how to create better money habits.

If you liked this post check these out!


How to Cultivate a Money Mindset


Money Rules Rich People Live By

Disclosure: This post may contain affiliate links, meaning we receive a commission for purchases made through these links, at no cost to you.

Similar Posts

Leave a Reply

Your email address will not be published. Required fields are marked *