Whether or not we choose to admit it, many of us have bad money habits that leave our budgets feeling neglected and our wallets feeling empty. Regardless of who you are or how old you are, every one has developed some money habits that aren’t so good for us. It’s easy to fall victim to impulse buys and poor budgeting in this age of consumerism but there are some things that you can do to drop many of your bad habits.
In order to help you drop bad money habits you first have to understand what those habits are and how we developed them.
Beware All Impulse Shoppers
We live in an amazing era of technology and mass trade. These luxuries provide everyday citizens with access to merchandise from all around the globe. It is truly awe inspiring how much progress industry has made in such little time.
Sadly, there is a downside to such innovations. Thanks to all the seemingly benign window shopping that we do on a daily basis, many of us fall victim to impulse shopping. Not only can we find impulse buys at recreational shopping centers but we can also find them in our grocery stores. Which is why stores will put the bread right next to the lunch meat.
With so many daily traps, its no wonder why people go borderline broke after the weekend of every paycheck.
In order to initiate your plan to drop bad money habits, you need to be aware of ways to avoid impulse buying.
Here are a few simple guidelines to help you avoid impulse shopping:
- Have a 30 minute shopping limit
- Don’t shop angry (Ever!)
- Follow the list
- And, give yourself at least a day to think over big purchases
Mind Your Savings
Having a savings account is a good way to manage your money and keep track of your savings. Many banks will offer a patronage fee for those who have a savings account with them. These could range, depending on the money you have in the account. While account has many benefits, it does require a lot of consideration while planning your budget.
Even those who don’t like dealing with the banks must admit that having their money tucked away gives an added degree of safety; whether it be from themselves or others. Sometimes, we can be our worst enemy when it comes to managing our budget.
With so many ways to spend our money on a daily basis, it’s hard to consider the effect our spending might have on our savings account.
When we’re young, our savings account might not seem like much of a big deal. These types of thoughts can follow us into adulthood, which can result in bad money habits.
In order to drop bad money habits regarding your savings, you must first understand the importance of your savings account.
Saving up your money can have several benefits such as:
- A higher patronage rate from banks
- Easy access to money for large expenditures
- And, an unofficial retirement fund
Saving up money can have many positive influences on your life. But, for those of us who live paycheck to paycheck, building up our savings can seem like a distant fantasy.
Luckily, saving gurus over the years have found simple ways to enable you to save your money such as:
- Driving less often
- Dining out less
- Putting your needs before your wants
- And, having long term goals
You May Spend too Much on Housing
While it could be hard to drop bad money habits by resisting the impulse to buy things, this one should make homeowners everywhere feel better about their savings.
For those of us who own a house or are renting an apartment know how expensive housing can be. However, budget gurus know that housing shouldn’t account for more than 28 percent of their gross income.
If you’re looking to drop bad money habits prioritizing too much money into your home can leave little room for budget/ saving improvement.
Here are some simple ways to lower your housing costs:
- Turn off the light when you leave a room
- Argue your mortgage
- Switch to Netflix/Hulu (you can save a lot of money on cable this way)
- Do away with landlines (cause how often do you really use it anyway?)
- Rent a room
While you may be stuck in your rent or mortgage contract for a seemingly indefinite amount of time, there are some ways to drop bad money habits that accompany owning a living space.
Bleeding Your Wallet Dry With Bank Accounts
You pay the bank for the service of holding your money. It seems simple right? Wrong.
Banks are notorious for doing just about anything they can to get an extra dollar out of you. They hit your account with unreasonable fees and unwarranted penalties without much explanation. This can really pose a challenge for those looking to drop bad money habits.
If you are among the people who find themselves neck deep in overdraft fees and penalties, it may be time to sit down with your bank and negotiate the terms of your account.