Earlier this year, tidying up expert and overall organization wizard, Marie Kondo, made big waves with her Netflix show all about how to get rid of unnecessary household items. The idea behind her method is to slowly and carefully go through the things that you own. Ask yourself: does this item spark joy for me? If not, then you can do without.
When it comes to your money spending habits, are you finding that the way you spend money is no longer bringing joy to your life? Perhaps you are regularly going over on your cell phone data plan. Maybe you’re a real sucker for take-out food and end up going to restaurants even though you have food at home.
Other bad money habits that eat up our incomes are buying unnecessary items you already have, impulsive online shopping, and buying things on sale because you can’t pass up a good deal (let’s face it—that item will be on sale again). If you know that you have your own fair share of spending vices, then congratulations on acknowledging the money habits you need to break in order to improve your spending and grow your savings.
Want to know what some of the most popular poor spending habits are? Ready to make some changes and replace the bad habits with good ones? If you’re struggling with your finances, owing a lot of money might leave you feeling like declaring bankruptcy is inevitable, but it doesn’t have to be that way. Read on.
How to Break Bad Habits
In this modern-day age of self-improvement, there are plenty of apps and digital communities that people can use to support and encourage themselves through the process of breaking bad habits and building up new, good habits.
To break bad spending habits, start by considering how your poor spending makes you feel. Sure, it can be exciting to make a new purchase or even fun to pick up some shiny new toy from your favourite online store, but what about when the buyer’s remorse sets in? Ever wish you could talk to your past self and talk them out of a buying decision? Then maybe it’s time to focus your efforts on budgeting.
Bad Habit: Not Budgeting
Everyone needs a budget, even if they have plenty of money in the bank and few financial obligations. Budgets map out a plan for your spending so that you don’t have to think twice about making a purchase in the heat of the moment. Is it in the budget? Were you planning on buying this? If not, move on.
Bad Habit: You Love Convenience Too Much
Let’s face it: living in the internet era means that we have certain conveniences and services that we otherwise wouldn’t have any need for. Thirty years ago, how did everyone get meals delivered to their homes whenever they wanted? They simply didn’t.
Buying things out of convenience can be a nice treat, but you can usually go longer without the item than you think. When you’re in a hurry or under stress, a convenience purchase like fast food seems necessary. However, are you consistently making spur-of-the-moment decisions because of stress? If so, you have room to improve. A little extra work in prepping lunches and making your own coffee in the morning can save you big time and train you to go without paying a premium for convenience.