5 Worst Habits For Your Finances

For some people, financial troubles are caused by things outside their control – illness, loss of a spouse, or fraud. Other times, financial troubles can be traced back to things that you could have done differently. If you're having money problems, these habits could be the blame. Even if you're doing well right now, avoiding these will ensure you stay that way.

Having Bad Spending Habits

Overspending, not budgeting, failing to save, and using debt are all spending habits that can lead to major financial problems. You can correct bad spending habits, but you first have to recognize that you’re not making the right choices. Replace those bad spending habits with better ones: sticking to a budget, spending beneath your income, and putting money into savings.

Being Lazy

Not putting in the energy or effort to read your statements, look for a better job, ask your boss for a raise, or take control of your finances can lead to serious financial troubles. If getting your finances together seems too overwhelming, start with small steps – like checking your bank balance daily – and build from there.

Procrastinating

Putting off important financial tasks can be extremely costly. Delaying your bill payments can cause late payments and reconnect fees. Not starting your retirement savings can lead to bigger problems down the road – like having to remain in the workforce longer than you want to.

Schedule time in your week for focusing on your finances and make a reasonable list of what you want to accomplish. Resist the temptation to focus on anything other than your finances at the time you've set aside.

Not Getting Educated

Personal finance isn’t intuitive and unfortunately, it isn’t taught in many schools or homes. Thankfully, there is a wealth of easily accessible personal finance education. Books, blogs, and magazines can provide you with the knowledge you need to stop making devastating financial mistakes and empower you to make better choices.

Failing to Adjust When Necessary

Getting married or divorced, losing your job or taking a paycheck, moving from an apartment to a house, or adding a pet or child to your family are just a few life changes that can impact your finances. Don’t take for granted that your finances will work themselves out. You must deliberately keep your finances under control when your life changes. Continually reviewing your income and expenses will help keep your finances from spiraling out of control.

You may not be able to control everything that happens in life. Being prepared, for example with adequate insurance and an emergency fund, can help you stay afloat even when you experience the unexpected.