Since it is a new year, one of your goals may be to get rid of your bad money habits. With that said, if you are struggling with bad money habits, know you’re probably not the only one. However, they are much easier to break than you may think.
Sometimes it is hard to recognize what habits could be bringing us down financially. Which is why at the start of a new year, month, or week, it is smart to reflect on what those could be.
There is no better time than a fresh new year to start tackling some of our bad money habits. In crushing some of your bad habits, in turn, you will begin to form even better habits! If you are able to break some of these bad money habits, you’ll absolutely be able to meet your financial goals by the end of the year!
Here is to a year of breaking bad spending habits, financial empowerment, and a renewed commitment to financial responsibility! So, if you’re ready to make bad money habits a thing of the past, continue reading!
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Bad Money Habits to Break in 2024
1. You’re not keeping a budget
Keeping a budget seems much more intimidating than it is. I get it. However, once you get the hand of it, it is easy. Many people across the world are learning the specifics on how to budget as a beginner.
Budgeting becomes much easier once you recognize that it is entirely specific to you. However, there are many approaches you can take to budgeting. Whether you just write down your expenses to keep track of them, or tailor an entire plan, your budget is yours!
Starting with the basics is key to getting started in 2024! Make it a priority to acquaint yourself with the fundamental principles of budgeting. Take those initial steps, and you’ll soon realize that the once-intimidating task becomes an empowering tool for managing your finances with confidence.
2. You are overspending on groceries
If you are overspending on groceries, you’re most definitely not the only one. However, there are so many ways you can limit your spending on groceries.
My personal favorite on saving money on my grocery necessities is using apps like Ibotta. This app has saved me hundreds of dollars on some of my grocery list items. So, always recommend it to everyone! It is super simple to use, just go grocery shopping, add the items you purchased, then scan your receipt for cash back! Yes, they literally give you money back that you can reimburse yourself through on PayPal or in other formats. It’s awesome.
Of course, it is so easy to grab so many things you want but don’t need at the grocery store so it is important to make a list before going! This will also help in reducing your grocery bill.
Related: 7 tips on How to Save Money on Groceries
3. You’re still using food delivery apps
If you know me in person, you know that I will never recommend using food delivery apps. With that said, if you regularly use food apps, too much of your money is being spent on them.
The drawbacks of food delivery apps are multifaceted. Firstly, you’re spending double the cost for the convenience of having meals brought to your doorstep. Secondly, relying on these apps often caters to our desire for immediate gratification. Let me be clear; I’m not here to judge as I have done the exact. same. thing.
From experience, I spend thousands of dollars less on food and groceries now that I have deleted my delivery apps. So, I challenge you to break this bad habit as well in 2024 and watch yourself save lots of money!
4. You are not building savings funds
Having savings funds is incredibly important when it comes to having healthy money habits. However, if you do not have any savings funds, this may be something to reconsider in 2024.
Having a savings fund could look as such: an emergency fund for emergency expenses, a car fund for car expenses, and etc.
Use a portion of your paycheck to put toward your savings goals and watch it grow over the year. You can even use a cash holder that helps you put money in envelopes towards each savings goals. Lastly, another amazing option is using a high-yield savings account and stashing away some money in those!
5. Paying for subscriptions you don’t use
Paying for subscriptions you don’t frequently use is essentially the same as pouring your money down the drain. Not only that, but the same goes for paying for a more expensive subscription with features you don’t use.
Consider this scenario: You’re shelling out $50 a month for your gym membership, complete with access to the sauna and massage chairs. However, the harsh reality is that you rarely, if ever, take advantage of these amenities. In essence, you’re squandering your money when you could easily downgrade to a more cost-effective plan without those unused extras.
As we embark on a new year, it’s crucial to review of all your recurring subscription payments. Take a moment to reflect on how frequently you truly use each service.
If you find yourself drowning in a sea of over 10 streaming platforms, perhaps it’s time to streamline and cut back on a few. Similarly, if you’re juggling multiple gym memberships across different locations, consider trimming down to those that align more closely with your use.
6. You’re buying “cheap” or low quality products
If you’re buying cheap or low quality products for your essentials, you’ll often have to go back to get the better item. Although buying a lesser costing option may seem like a good money habit, it can cause us to lose more money in the long term. That is if we continue having to replace the low quality item with something else if it did not work to your liking.
For example, one time I bought a box of aluminum foil that was much cheaper than the name brand I usually buy. Once I went to use it, it never ripped evenly and often wasted so much of the foil because of it. In turn, I had to go and buy the one I usually get and toss the less expensive box of foil.
So, when it comes to shopping and you find yourself reaching for the less expensive option, consider two things.
- Is this a necessity? (If so, maybe buy the high quality item)
- Have you used this before or know of someone who has used it and had great results? (If so, maybe buy it!)
7. You’re not using a credit card like a debit card
Credit cards can seem tricky however it is as simple as only spending what you have.
For example, if your debit card has $300 and your credit card has a credit limit of $5,000, you should only be charging $300 to that credit card.
Rather than using credit cards for emergencies, which is what we should be using tip number 4 for, we should use them as a tool! Credit cards are great to utilize for increasing our credit score, earning travel points, earning cash back, and more. However, they must not be used as “excess money.” If you’re unable to use your credit card like a debit card, it is almost better to not have one as it can encourage really bad money habits.
