3 Dangerous Spending Habits

February 24th, 2017 | Author:

[E]ven if you have plenty of money now and can afford to splurge, you should take a look at your spending habits. A job loss, downsizing or unexpected expenses can mean you are no longer able to live the same way as you do now. To tell if you would be in trouble if your financial situation changes, you need to look for three habits that are dangerous.

1. Spending First Before Paying Bills

Some people like to go out shopping as soon as they get paid. They’ll spend money before they worry about what bills need to be paid. While you may have plenty of money for shopping now, it can be a bad habit to get into.

How to Break This Habit: Make a commitment to pay your bills first or at least see how much money needs to go to bills before you shop. Once you discover how much is left over, withdraw that as cash and only spend the amount you have.

2. Delaying Paying Bills because of Spending

You see a cool stereo or a nice pair of shoes on sale, and you really want to buy it even though you don’t have the extra money this week. You mentally start shifting your bills around and decide to pay one next week even though it will be late. This is a bad habit to get into where you take away from the money allotted to bills so you can spend it on non-essentials.

How to Break This Habit: Don’t take your credit card, debit card or any extra money with you when you go shopping. You won’t be able to buy the item now, and you’ll have time to think about your choices before you can go home and return with it to make the purchase.

3. Spending Money as a Reward

Sure, it’s nice to buy yourself something nice occasionally, but you shouldn’t have to spend money to feel good or improve your mood. If you use money as a reward, it is a bad habit that can be costly.

How to Break This Habit: Find non-monetary ways to reward yourself for losing weight or completing a project.

Newest Answers

Big Changes Coming to Credit Reports

August 18th, 2017 | Author:
h

[I]f you have a bad credit score, you may benefit from the changes coming to credit reports soon. If you’re one of the lucky ones, you’ll see your credit score improve. In fact, it is expected that up to seven percent of those who have credit histories could see a benefit. What Changes Most civil […]

Continue Reading »

Be Realistic When Budgeting to Get Out of Debt

August 17th, 2017 | Author:
h

[Y]ou’re deep in debt and you want to pay it off to improve your credit score and to make life simpler. You want to pay it off as quickly as possible, which means making some major changes in your finances and life. Many experts tell you to stop spending any more money than you have […]

Continue Reading »

3 Ways You Can Waste Your Money

August 11th, 2017 | Author:
h

[I]f you’re trying to become more financially stable and improve your credit rating, you must be careful with how you spend your money. While you don’t want to give up everything fun in life in order to be frugal, you also want to avoid wasting your money on unnecessary expenses. Here are three ways people […]

Continue Reading »

Starting Over from Bad Credit

August 9th, 2017 | Author:
h

[Y]ou hit rock bottom with your credit. All of your accounts went to collections and your car was repossessed. You don’t even want to check your credit score because you know it’s bad. While the situation might seem hopeless, you can turn it around. Once you’ve lost any credit worthiness, you are ready to work […]

Continue Reading »

How to Talk to a Boyfriend/Girlfriend about Their Credit Rating

August 7th, 2017 | Author:
h

[I]f you’ve been dating someone for a while, you may be getting serious. Before you start dreaming about the perfect wedding day or what life will be like with 2.5 kids and a dog, you need to know you’re on the same page about important issues. While many people think nothing of talking about how […]

Continue Reading »

3 Ways Credit Matters to Everyone

August 4th, 2017 | Author:
h

[Y]ou pay everything with cash. Your motto is “If I can’t pay cash, I can’t afford it.” That means no credit ever. You may assume that you don’t need to worry about your credit score if you don’t plan to use credit to buy anything. Unfortunately, credit isn’t just about loans and credit cards. A […]

Continue Reading »

3 Tips to Help Your Kids When They Have Summer Jobs

August 2nd, 2017 | Author:
h

[I]f your kids are old enough to take on a summer job, now is a golden opportunity to teach them about money and finances. If you start them out right, they will know how to handle money and financial responsibility for when they are earning a full-time income. Here are three tips to use this […]

Continue Reading »