Bad spending habits haunt the average person and could be the reason for a lot of their problems. A lot of financial problems revolve not just around how much people make, but how much they actually spend. Some people overspend and end up in debt at the end of the every month on a larger salary while others with a smaller salary could be saving up.
How do I get out of bad spending habits?
In order to get rid of those bad spending habits, it is important to first pinpoint them, see how you can improve those habits or substitute them with better ones, and execute. Not every time people have the luxury of choices. Sometimes, it is better to cut out the bad spending habits altogether.
What are some bad spending habits?
1. Buying expensive brands
Buying a cheap brand does not mean sacrifice on quality, there are many other alternative brands that offer good quality at a fair price.
2. Upgrading gadgets without needing the latest version
The latest this, the latest that. Upgrading your gadgets purely to have the “new features” is a bad spending habit especially if it is for entertainment alone. The only good reason to upgrade your gadget is for work or investment.
3. Eating out frequently
When you are eating outside, you are not just paying for the food. You are paying for a portion of their rent, staff, electricity, water, and a lot of other things. Try limiting your eating out to only essentials like meetings and important occasions.
4. Cooking single meals
When cooking a meal, try cooking for two or three meals and make sure to eat them. This saves gas and also the food themselves.
5. Bottled water
Instead of drinking bottled water, make it a habit to carry a water container around.
6. Buying Coffee
You’ve probably heard this before. Make your coffee at home.
7. Unused subscriptions
If you’re not using it, don’t subscribe. You can alternate from Netflix, Hulu, Disney+ if you want. Just don’t get those three at the same time.
8. Late fees
Never miss your credit card payments!
9. Bringing excess money
If you are using cash and not your card, never bring more than you need. Also, it might be good to set a limit on your credit card.
10. ATM fees
Cross-ATM fees stack up in the end. Make sure to withdraw wisely.
Avoid these bad spending habits and try noting how much you spend on a regular basis. This will help you be more self aware with your spendings.
Also check out: Top 10 College Student Investments: How to Start with Little