In today’s world, money talks. In the past few years, we’ve seen more and more people opt out of using cash to pay for products or services–and instead use a credit card or digital currency like bitcoin. But do you know how much you’re spending on your shopping habits?

The “5 bad money habits” are things that most people do without realizing it. The first is spending money on things you don’t need. The second is being too generous with your money. The third is not saving enough for retirement. The fourth is being a saver, but not an investor. And the fifth is living paycheck to paycheck.

Bad money habits you probably have & don't know it

It’s critical to prepare for your financial future. You must make intelligent financial choices now in order to have a bright financial future and more money. People have a variety of negative money habits that will harm their financial objectives in the long term. Not having an emergency fund, spending too much on dining out and shopping, and not paying attention to interest rates on loans are all examples of unhealthy spending habits.

Here are 22 of the most prevalent negative money habits that might lead to a disastrous financial future, as well as some advice on how to develop good money habits and break bad ones.


You have a bad habit of not saving money.


People do not always consider how to save money. Instead, they’ll spend their money on items that provide them with more immediate financial satisfaction, such as dining out or shopping. They could also purchase something with a credit card and then pay interest on it later. Savings goals are crucial since they may help you pay for unanticipated financial problems or emergencies. It also aids in the development of your financial safety net, making you less inclined to borrow money from friends and family or run up credit card debt when times are rough.

Christian Horz / istockphoto contributed to this image.

2. Habit #2: Failure To Plan


If people want to make better financial goals and stop harmful spending habits, they need to know what they’re doing with their money. It’s all too easy to get caught up in the moment and spend money carelessly. Many individuals spend their salaries as soon as they get them, without considering what they really want or desire. This may make life financially burdensome.

Having a financial plan and setting financial objectives is critical since knowing where all of your money is meant to go can aid you in the long term. You’ll be able to check whether you have any money left over at the end of the month and if your salary allows you to live in specific places.

It will be quite difficult for you to make any progress toward financial security if you do not have a financial plan in place. If you don’t have a clear financial strategy, it’s also far more difficult to save money.

Some financial plans require you to break down your financial objectives into a monthly budget, where you may monitor money moving in and out on a daily basis using your bank account statement or a budgeting tool. If you’re overspending or undersaving each month, it’s time to make some adjustments that will get you back on track. The good news is that you can establish positive money habits now by breaking negative financial behaviors. provided the image.

Borrowing from friends and family is habit number three.


Borrowing money from friends and family members is a terrible money habit since it might harm your relationships with people you care about. While borrowing money from a friend may seem to be the simplest choice at first, it frequently results in individuals asking for the money back later, which may lead to embarrassing situations or, worse, credit card debt! It’s OK to borrow a little every now and again, but try not to make it a habit. You want to develop positive habits that enable you to enjoy your life rather than incur further debt.

Image credit: iStock/KvitaJan

#4: Spending More Money Than You Earn


Your financial health is jeopardized if you spend more money each month than you make. Using credit cards might give you the impression that you are in excellent financial shape. Cutting needless spending and finding other sources of income are the greatest methods to break this behavior.

You might also consider making a budget so that you know precisely how much money should come in each month. I made a free fillable budget that might assist you in starting to save money. provided the image.

Habit #5: Spending More Than You Earn


You may be able to afford those lavish meals, but you’re living above your means if you can’t pay for them without jeopardizing your financial stability and peace of mind. To prevent this terrible financial habit in the future, always purchase what you need and limit your excessive spending.

Don’t just purchase finer items to impress your friends or colleagues. The financial strain is not worth it. No one is interested. The only person who can see the brand name is you.

Image credit: iStock/cobrusia

Habit #6: Failure to Stick to a Budget


A budget without a financial strategy is wishful thinking. Sticking to your financial objectives necessitates living within your financial means, regardless of what temptations or diversions attempt to pull you away from it.

A budget is a fantastic concept since it helps you to establish financial objectives and see your financial situation clearly. It makes the road to financial success more visible, which is why it’s such a vital component of any financial strategy. By improving your money habits, you may start to improve your financial status.

There are many various budget alternatives available, so you may choose one that works for you. You may receive a free budget template from me by clicking here.

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Habit #7: Not Keeping Track of Your Money


You may be astonished to learn how much money you spend in a month. You will undoubtedly be astonished, to be sure.

If you don’t keep track of your spending, it may lead to financial troubles in the future when one poor choice leads to another and you suddenly don’t have enough money to pay your rent or eat.

You don’t have to monitor your costs by hand if you utilize financial applications like Mint. Make use of technology to save time.

Image courtesy of simpson33/istockphoto.

Habit #8: Lack of financial knowledge


Because financial difficulties may be tough to solve if you don’t know what you’re doing, it’s critical to educate yourself on personal finance. Being financially literate may also assist you in overcoming negative spending habits.

There are several personal finance books, articles, and videos available to teach you the fundamentals. You may also watch YouTube videos in order to have a better grasp of the subject. That’s what I did years ago, and it’s helped me develop better financial habits.

PeopleImages provided this image.

Having No Emergency Fund is Habit #9.


Always save some money in an emergency fund so that if you have any unforeseen costs, such as an accident or sickness, you can pay for them without throwing your finances into disarray.

Your emergency fund should always have 3-6 months’ worth of costs in it. If you lose your job or have another difficulty that keeps you from working for a period of time, this will be a component of your money. Until it isn’t, each day is the same. Prepare yourself.

Rawpixel / istockphoto contributed to this image.

Habit #10: Not putting money aside for retirement


Savings for retirement are required to retire early or at all. If you don’t start generating wealth now, you won’t have enough money later in life to meet your basic necessities. It is not a good idea to turn your children into savings accounts.

You should begin saving money as soon as possible since the more time you allow yourself to do it, the better. This may be done with either a 401(k) or an IRA. Also, keep in mind that you can surely decrease expenditures and live on less money than you do today.

You may contribute pre-tax money to a 401(k), resulting in immediate tax savings. Anyone with earned income may contribute to an IRA, thus there are no income restrictions. However, be certain that the financial institution is trustworthy and that you are obtaining the finest offer possible. Do your research, but don’t allow it hold you back. Start investing right now.

Flickr user American Advisors Group contributed this image.

Incurring Credit Card Debt is Habit #11.


Because it is so simple to get behind on your credit cards, it is one of the biggest financial concerns you may have. When consumers are attempting to pay off other debts or make their monthly mortgage payments, credit card spending adds up rapidly and creates financial stress.

Having a lot of credit card debt and accompanying interest costs may put you back a lot when it comes to financial planning, and it can make it tough to break negative money habits like impulsive purchasing. This is why the fourth habit is so crucial. You want to make sure you’re developing solid financial habits.

It is critical to pay off your credit card debt in full each month to avoid interest and financial hardship. Credit card firms may charge someone else interest!

Paying the minimal monthly payment is insufficient. The credit card company encourages you to do this because it earns them a lot of money each month. This will not assist you in accumulating riches.

You may improve your credit score by regularly paying off your whole bill each month, which is vital for your financial objectives. Being debt-free benefits both your mental health and your financial goals. You don’t want to be stressed out in the supermarket checkout line, wondering whether your credit card will be accepted or not.

Bad credit may lead to things like getting turned down for an apartment, paying more interest on loans, and even paying more for vehicle insurance. provided the image.

12th Habit: Paying Late Fees


Paying your payments late, for example, might lead to financial hardship and difficulties in the future. Not only will you accrue late penalties, but it may also have an influence on any future financial goals you have, such as purchasing a home or securing a vehicle loan.

Make sure you know when each bill is due and pay it on time to prevent this unhealthy habit. A separate savings account for regular expenses may even be useful. You may have money automatically sent into the account from your bank account every time you earn a paycheck, and then transferred out when the payment is due, so you don’t have to worry about it and won’t have to pay any late penalties. provided the image.

Habit #13: Overspending on shopping


People may believe that spending money on something is preferable than leaving it in their bank account. People, on the other hand, often overlook financial planning and underestimate the influence that acquiring products might have on their money in the long run.

Another form of overspending is shopping. Shopping is a fun hobby for many people, but it can also be detrimental to your budget. If someone shops to make themselves happy or to distract themselves from their difficulties, they may not recognize the financial consequences of their poor habit until much later, when they look at how much money they’ve spent on unneeded products. The number one facilitator of impulsive purchasing is credit card spending. provided the image.

Buying Everything New is Habit #14


Although it may be tempting to purchase everything brand new, new products are more costly than used or even homemade ones. There’s nothing wrong with buying anything brand new if you can afford it, but if you can’t, it could be worth assessing if a product needs to be upgraded and what possibilities are available for buying gently used things in excellent shape.

If you like reading, Amazon always has used book alternatives available, with prices ranging from $25 to $3. Simply consider if having that pristine cover is really necessary. 90% of the books I’ve purchased on Amazon have been in excellent condition.

If you’re looking for a new phone, eBay provides a plethora of excellent reseller alternatives. Last year’s model, which seems to be fresh new, is available for a fraction of the original price.

Purchasing used items is very acceptable. Indeed, there are monetary advantages to doing so. Buying used products quickly relieves financial burden on your pocket. If that’s important to you—and it should be—you can get more bang for your money. provided the image.

Ignoring Your Student Loans is Habit #15


Ignoring your student loan debt is a bad choice since it affects your financial planning. If you don’t pay off your student debts, it will affect every financial choice you make in the future, including whether or not you purchase a home or marry!

Even if you’re just paying the bare minimum each month, you should treat it like any other financial commitment. Don’t forget about your student loans; they’re just like any other financial obligation.

Damir Khabirov / istockphoto contributed to this image.

Having Unnecessary Subscriptions is Habit #16.


Subscriptions like memberships to Netflix or Amazon Prime that aren’t required count against financial planning. It may not be worth it to spend $12 per month for something you seldom use.

Each month, review all of your subscriptions to see whether they’re still essential. Remember that you may always open a joint account with a friend or family member to save money! These subscriptions may be simply canceled online. It begins to build up when you put $10 here and there over the course of a year.

Istockphoto / monkeybusinessimages

Habit #17: Failure to Set Financial Objectives


Set objectives for yourself to strive toward, according to financial advisors, to give your money a purpose and direction. You’ll have no real motive to save if you don’t have defined personal financial objectives, and you’ll be more prone to spend impulsively. It’s also tough to break unhealthy money habits if you don’t have specific objectives in mind.

Financial objectives don’t have to be huge or extravagant, but they should be something you strive towards every day. Your financial goals will help you keep track of your finances and give you a sense of where you want to be financially this year and in the future.

Cn0ra / istockphoto contributed to this image.

Making Too Many Impulse Purchases is Habit #18.


It’s all too easy to spend rashly these days, particularly in the digital era. When you go online shopping or see something in a store that strikes your attention, it might be tough to resist pulling out your credit card and purchasing it without considering the financial implications.

When it comes to financial planning, impulse shopping is one of the worst poor money habits since it can put you back months, if not years. There’s no such thing as free money. If you aren’t cautious with your money and purchase impulsively because it feels good at the time, you risk losing out on something much more significant than a new shirt or pair of shoes: long-term financial security for yourself and maybe your family.

B4LLS / iStock contributed to this image.

Taking out payday loans is habit #19


Payday loans are debt traps, so avoid them as much as possible. In comparison to any other loan or credit product, these financial instruments require you to pay extraordinarily high interest rates. It’s tough to get out of the payday loan cycle once you’ve started. These should be avoided at all costs.

courtesy of relif / istockphoto

Habit #20: Failure to Plan For Taxes


If you know you’ll owe money on your taxes, you should budget for it and save enough money to pay the IRS at least a percentage of what you owe. This is because if you don’t, they will charge you interest on top of whatever amount you owe.

Create a savings account and set up an automatic monthly transfer from your salary to avoid spending it all straight away. This way, when April 15 rolls around, you’ll have the funds in your bank account ready and waiting. provided the image.

Habit #21: Having a meal out every day


It is not necessary to eat every meal at a restaurant; it is costly and often unhealthy. Instead, organize your meals for the week ahead of time so you know precisely when each meal will be served. If you work from home, bring your lunch every day so you don’t have to go out for lunch. provided the image.

Not checking your credit report is habit #22


Once a year, review your credit report to keep track of any changes. This will let you see what’s working and what isn’t, so keep track of it on a frequent basis! You can even come across late payments that shouldn’t be there. You may immediately dispute these incorrect items with the credit bureau.

This article explains how to get your credit report for free. Bad credit might make it difficult to gain college financial assistance, get a home loan, or even rent an apartment.

NicoElNino/ istockphoto contributed to this image.



Bad financial habits might have a negative impact on your future finances. It’s critical to begin working on correcting these unhealthy behaviors as soon as possible if you want to have financial stability and confidence.

Fortunately, all of these unhealthy behaviors are easily remedied. It’s never too late to start planning for your financial future if you’re prepared to put in the effort. syndicated this story, which first appeared on

Image courtesy of nicoletaionescu/istockphoto.

MediaFeed has more.


Georgijevic provided the image.


In this article, I will be discussing 5 good money habits that you probably have and don’t know it. They are: “save your money”, “don’t spend more than you earn”, “pay yourself first”, “live below your means” and “invest in the stock market”.

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  • examples of bad spending habits
  • bad money habits and how to break them
  • positive money habits
  • 16 bad spending habits
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