Bad habits are habits that are not beneficial to someone. Some bad habits lead to weight gain and poor hygiene. There are other bad habits that lead to poor health. Most people will say the worst bad habits are the ones that lead to financial ruin. There are many people that have found that bad habits are easy to start and extremely hard to break.
People don’t always realize the patterns they set financially are bad. Many don’t understand that not balancing their checkbook or purchasing large ticket items without thought of their obligations can lead to financial ruin. Most people don’t have an unlimited amount of money nor do they have an accountant or bookkeeper monitoring their purchases to record them. These are things that most have to be aware of and track for themselves. When people get used to doing these things financially, it may take time to become aware of financial troubles and it may take even more time to correct the issues and behaviors.
The Habits and The Corrections
Financial bad habits are easy to start and recognize. There are some that are so small they are easy to laugh at and disregard. For those that want to remain financially healthy, they are willing to pay attention and correct the bad financial habits they have.
The Habit: Always Shopping with Credit Cards
Constantly shopping with credit cards can be financially devastating. Most people don’t think twice about using their credit cards to pay for everything because they have no attachment to the money they are charging. Without attachment, there is very little reason for people to think about the large amounts of money they are actually spending. The danger starts when they can’t afford the entire balance of their credit cards each month. It’s a bad financial decision to pay for everything on a credit card and allow the balance to grow each month. The accumulated interest rates on these credit cards alone can bankrupt most families if their spending habits are out of control.
The Correction: Pay for everything with cash or a debit card. This helps people reign in careless spending and only allows people to spend what they can actually afford.
The Habit: Shopping with Friends Constantly
Shopping can be a lonely thing sometimes. Occasionally shopping with friends can be fun and relaxing. Constantly shopping with friends and competing to keep up with their purchases is something that can devastate someone’s budget.
The Correction: Schedule a time to shop with a friend occasionally. This is something that can be enjoyed as a treat.
The Habit: Constantly Borrowing Money from Family and Friends
It’s easy to get into a financial bind because of an unexpected expense. It happens to everyone at one time. Constantly getting into financial binds and asking family or friends for money will get old really fast. It’s an unacceptable and irresponsible habit that no adult should have.
The Correction: Get on a budget and start a savings account. Most financial binds can be avoided with the proper budget and planning.
The Habit: Not Balancing a Checkbook
There are some people that don’t balance their checkbooks. This is a mistake that can cost a person hundreds or thousands of dollars in NSF and bank fees. Those that don’t balance their checkbooks don’t know where their money is going and they can only guess how much they have available to spend. The person that doesn’t balance their checkbook is an identity thief’s dream target.
The Correction: Balance checkbooks once a week or more. If there are errors found, contact the bank for an explanation and dispute charges if necessary.
Bad habits are easy to form and feel fine. Bad financial habits are habits that can lead to financial ruin in a small amount of time. Don’t allow bad financial habits lead to an unhealthy and unstable life.