4 Poor Financial Habits You Need To Lose

This contributed post is for informational purposes only. Please consult a business, financial and legal professional before making any decisions. We may earn money or products from the affiliate links in this post.

poor financial habits you need to lose

Everyone’s picked up a bad habit once or twice in their life. Sometimes it’s something simple to cure, and other times it can be a crippling addiction that could ruin your life. There are plenty of bad habits in the world, but today we’re going to be talking about financial habits that you need to break out of.

If you want to take control of your financial situation so you have more money to spend and fewer debts to worry about, then you need to focus on beating these poor financial habits.

Impulsive buying when under pressure

Impulsive buying is a large source of overspending. As shown in this informative article at https://www.psychologytoday.com/us/blog/consumer-behavior/201303/five-reasons-we-impulse-buy, there are many reasons that we indulge in impulse buying. In order to save your cash, you’ll need to develop better spending habits that protect you from impulse buying, especially when you’re put under pressure from your peers.

Refusing to or forgetting to claim money that is yours

While it’s not necessarily “free” money, there are likely many places where you could claim some extra funds. This could be something like child support, it could be money that you’re missing from an injury claim or it could be insurance money that you haven’t picked up yet. Take a look at https://www.kindleylawyers.com/san-diego-car-accident-lawyer/ to find some useful information about car accidents and lawyers that could help you claim back money if you were in an accident. Many people completely forget what they’re entitled to and, as a result, might overlook extra money that could be in their pockets.

Digging into your savings account for frivolous things

Let’s face it, how many times have we dug into our savings accounts to spend on frivolous things? Whether it’s a holiday that we thought we needed or the latest gaming console that we bought with our credit card, there are plenty of impulse buys that we could do without. However, what’s even worse than simply buying on impulse is when you take money out from your savings account to fund it. Practice saving your money and make it taboo to even consider using your savings for personal pleasures. Instead, use that money on useful things like emergency repairs and medical bills.

Not keeping track of your incoming and outgoing money

Budgeting is an important financial habit to have. You can find plenty of useful budgeting apps at https://www.investopedia.com/personal-finance/personal-finance-apps/ if you’re unsure which ones to use or how to start saving. The idea is to always keep track of your incoming and outgoing money so that you know how much you can spend, how much to save and where you can improve your expenses.

Poor financial habits can quickly spiral out of control and take over your life. However, once you identify them and slowly weed them out of your system, you’ll find that you have much more freedom with how you spend your money.