We all have habits. Some are good and some are not so good.  Whether it’s cursing, biting fingernails, or something else, we all have things we do consistently that we should not, bad habits.  There are also bad or negative financial habits.  Things that we should not do that hinder us financially. 

Instead of simply accepting your financial negative habit, think about how that habit may affect your financial future.  Living the life that you want to, and then do something about it. 

When it comes to making the most of managing your money well, the following are some tips to help you recognize some of those negative financial habits and control them so they do not take a toll on your wallet. 

Not Living Within Your Means

Living within your means or spending what you do not have, is a negative habit and is critical to managing your finances. 

With so many temptations from new fashion every season to sales every other day at your favorite store, it is easy to fall into the habit of constantly buying new things.  Become a financially disciplined person and learn how to resist the urge, the consistent desire, to spend what you don’t have on what do not need.  

Start by creating a spending plan.  

Not having an Emergency Fund in Place

Not having an emergency fund for unexpected expenses is a serious negative habit.   Whether your car needs unexpected repair, your air conditioner breaks, or you get laid off, the unexpected financial event can be a real inconvenience.  

Saving regularly for an emergency or rainy day fund of 6 to 12 months of expenses is a must so that you will be covered when the unexpected does happen.

Be Aware of Your Money Attitude

What you say to yourself and others about your finances is a bad habit and can have a big impact on how you interact with money. 

Watch out for statements like, “I don’t have any money to budget,” “I will never make any money,” “Shopping is my therapy,” and “But, I’ve always let my spouse take care of the money.”  

These excuses, negative thinking, and talk will keep you from feeling confident about managing your finances.

Blind Spending

It’s important to not be oblivious to how much money you spend on a daily, weekly, and monthly basis. Weekly, add up all of those receipts for gas, snacks, soft drinks, and lunch at your favorite restaurant, and coffee.  And see how quickly it all adds up when you do not know how much you are spending every day.  Eliminate this bad habit and put yourself on a daily spending limit and stick to it.

Maxed Credit Cards

When used correctly, credit cards are an effective and useful tool in helping you to make purchases and build a good credit history.  However, when they are not, they are a bad habit waiting to happen.

The key is paying off your balance every month.  Be wary of spending up to your credit limit and just paying off the minimum amount each month.

We all have good and bad habits.  Do not just accept your negative bad financial habits but think about how that habit is affecting you and your finances.  Deal with that bad habit and live the financial life that you want to.  What other bad or negative financial habits can you think of?  Comment below, I would love to hear from you.