Let’s face it we all make poor money choices. Sometimes we may even be sabotaging our finances unconsciously. We are only human, after all. Breaking those bad financial habits can get us closer to meeting our goals.
1. Deluding yourself that you’ll eat leftovers.
Own up to the fact that you don’t like to eat last night’s dinner for lunch the next day. Make smaller portions instead.
2. Wasting groceries because you picked up takeout.
Plan meals ahead with a weekly system. Add ”take out” to the meal plan on certain days when you know you won’t want to cook. Set up the slow cooker or make extra meals and freeze them to make weeknight dinners easy.
3. Comparing yourself to others.
You don’t know if they got an inheritance, made good investment choices, and/or scrimped and saved for years to buy a special car or the home of their dreams. You also can’t know if they are stretched way beyond their means and are having trouble making payments.
4. Telling yourself, ”I deserve this purchase.”
Choose to reward yourself for accomplishments in ways that are fulfilling and affordable.
5. Losing receipts.
Keep a file or envelope for important receipts. Put it in an accessible spot, and when you pay your car registration, a medical bill, or a give a charitable gift, put the receipt in the envelope for safekeeping. You’ll need them for tax time or else you’ll forgo hundreds of dollars in write offs.
6. Waiting to increase your retirement contributions.
Use a calculator to determine the real cost of delaying your savings. Save at least up to the company matching contribution in your retirement fund, and then set up your savings on auto-escalation so it will automatically increase each year .
7. Shopping to increase happiness.
Set aside funds for a “spending account” and link a debit card to it.These funds can be designated for your retail therapy, or whatever you’d like to spend them on. Once the money is spent, save up for your next therapy session
8. Ignoring your credit card and bank statements.
Review your financial statements for recurring expenses. Ask yourself if you use the services you are paying for. If not, drop them. When you see an item you don’t recognize, dispute it.
9. Buying equipment or gear for your new hobby.
Rent or buy used equipment until you determine that you are going to make a commitment to your sport or hobby.
Making a financial comparison between yourself and someone else just isn’t realistic, so don’t waste your time or energy doing it.
10. Throwing away perfectly good items.
If you aren’t one to try to sell used items on Craigslist or a neighborhood Facebook page, donate them to charity. Many organizations will even come to your doorstep to pick items up.
You can take a charitable deduction on your taxes if you give to a qualified organization, itemize your taxes, and have a receipt.
