Bad money habits. We have them all, and the worst part is that it often times takes someone else to tell us and make us realize we’re doing them.
With that being said, I decided to make a small list of some bad money habits I’ve seen in my own environment, and I myself have gone through.
We could save so much money, if only we would be a bit more conscientious and willing to think more long term.
Without further ado, let’s have a look at 13 bad money habits that are keeping you broke.
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13 Bad Money Habits That Are Keeping You Broke
Going Out Too Often!
Eating out simply costs more money than buying groceries and cooking at home. That’s just how it is.
If you’re looking to save money, simply stop going out too often, which may include dinner, partying, drinking and so out.
Having Wine With Dinner
If you’re that person that loves a wine with their dinner, just know that your adding a few extra dollars per meal on by simply drinking a glass of wine.
If you would rather drink wine than save money, just know that your cheapest option would be to cook at home and open up a bottle, than to rather go out and eat and order a glass of wine.
Leasing Your Car
Leasing a car could end up costing you thousands of dollars more than if you were to actually buy it.
A 2015 cost-comparison report stated that the general cost of leasing a mid-priced car can be almost $10,000 more expensive than the cost of buying a similar priced car used.
So next time your thinking of leasing a car, you may want to reconsider purchasing it instead of leasing it.
Ignoring Your 401k Match
Twenty-five percent of employees does not save enough money to fully receive the full 401k match provided by their employer.
In general, that means that the average employee loses around $1,400 to their employers each year.
Going Out For Lunch
A 2013 survey by Visa stated that the average American eats out around 1.8 times per week and spends on average $10 each time.
Add all that up to a year and that will end up costing you on average $950.
Simply make a nice lunch meal in a brown bag. It’s cheaper, could be tastier and more nutritious.
Not Having Health Insurance
Millennial often think that they’re invincible and rarely get into an accident, resulting in them not needing health insurance.
However, if you end up in a car accident or major injury, you could run into some serious financial setbacks.
College students can stay on their parents’ health insurance plans until they reach the age of 26, but after that their own their own thinking they don’t need it anymore.
No matter how young or old you are, not having health insurance can be costly ignorant mistake.
If you do end up in the hospital, not only will you have to pay out everything out of pocket, but you can also be hit with a big tax penalty if the IRS finds out you were not covered.
Ditching Your Change
If you are the type of person who still uses cash a lot, you definitely have to keep your change.
Don’t just get rid of annoying coins.
Save them in a jar, and when you’ve reached the end of the year you go and drop it off at the bank in return for bills or a deposit into your account.
You’ll be surprised at how much money you could save by simply saving coins.
According to the CDP (Centers for Disease Control and Prevention) an astonishing 42 million Americans still buy and smoke cigarettes on a daily/weekly basis.
A pack of cigarettes easily costs between $5 and $10.
If you end up smoking a half a pack a day, you end up spending around between $500,000 over the course of 35 years.
This, assuming you would’ve done something more profitable with that money, like investing it with a yearly return of 7%.
Not Using A Budget
Yes, a budget can be really annoying and stupid, but if you don’t set boundaries, you can easily overspend really fast.
The good thing about having a budget is that you do not have to worry about if you’re going to spend too much money.
You can easily go shopping, knowing that you won’t cross any financial boundaries and you’ll still have all the stuff you need.
Making Impulse Purchases
Adding a pack of M&M’s or chocolate cookies to your grocery cart right before check out can in the long run turn out to be a very costly habit.
Try avoiding impulse purchases and if you really feel like you need a snake, budget it into your grocery budget and buy it in bulk so you save some money.
The general rule is, the smaller in size the more expensive the product actually gets.
Not Keeping an Emergency Fund
Not having an emergency fund can really throw you off balance in times of need.
Imagine you’ve set up this beautiful budgeting system, rarely use your credit card and when you do you pay them off each month, but you do not have an extra emergency fund in case of an emergency.
That could really end badly and set you back financially.
Running into an emergency could end up resulting in you digging into your credit cards and not being able to pay them off, cutting your budgets and simply even abandoning the idea, simply because it is too overwhelming knowing you can’t back it up anymore.
Try to create an emergency fund for at least 6 months worth of expenses.
That should act as a nice safety net for any financial emergencies.
Using An Out Of Network ATM
ATM’s can charge up to $3 per withdrawal, depending on the withdrawal method.
Try avoiding ATM withdrawals, and definitely avoid out of network ATM withdrawals as those often times charge even more money.
When I first graduated college, I neglected all type of maintenance issues, simply because I did not have the funds to pay for it.
After a while, those maintenance issues ended up becoming way bigger issues that resulted in me paying much more to get the item/car repaired, than if I would’ve just covered the simple maintenance costs.
Maintenance costs are extremely important. Neglecting those could end up resulting you digging into your emergency fund in case a big maintenance issue shows up.
There you go! 13 Bad money habits that are keeping you broke, that you can now change in order to save much more money than you have before.
Hope you enjoyed!