Are Bad Habits Hurting Your Finances?

One of the keystones of personal finance is discipline. This means having the ability to curb your spending and resist impulses that will waste your funds. However, we all have bad habits that can not only affect our health and well-being but also take a toll on our finances.

Frugal Rules recently took at look at seven common bad habits that cost you money. Some of these are no surprise including drinking, smoking, and fast food. Meanwhile other habits like “putting others first” may seem like good traits on the surface but don’t do any favors for your finances.

As I alluded to earlier, health and the cost of care factor into a lot of these habits more than you might think. For example, their sixth habit is “ignoring preventative care.” Skipping regular check-ups to save a few dollar could lead to more serious health problems that also happen to carry much higher price tags. This actually equates nicely with their number three habit: gambling.

Even though it’s only number four on the list, perhaps the most important habit to shake is “staying in debt.” While far too many people are content to keep paying the minimum on their credit cards, doing so will cost you far more money in the long run. So stop thinking of your debt as just a number on a piece of paper or your computer screen that can be ignored and start thinking about how much you’re wasting on interest. Sidenote: one good way to kick this habit is to look at debt consolidation via a personal loan.

Just like smoking or drinking can be addicting, so are many of these other bad financial habits. As the article points out, the first step in correcting these behaviors is to realize there’s a problem. This doesn’t mean you need to start attending SA (Spenders Anonymous… it could exist, right?) meetings, but here is a four-step plan for addressing these bad habits:

  • Acknowledge those habits that are costing you the most.
  • Make the decision to cut these habits out of your life (or budget appropriately for them).
  • Make amends to your bank account whenever possible by depositing the money you would have spent on a bad habit.
  • Encourage others in their financial recovery.

Yes, just like AA, having someone to encourage you on your financial path can be a blessing. Whether it’s a spouse, a friend, or even an app like Mint, have someone (or something) check in with you to make sure you’re staying on track and meeting your personal finance goals. Good luck!

Author

Jonathan Dyer

I'm a small town guy living in Los Angeles looking to make solid financial decisions. I write for a number of finance websites, including HuffingtonPost and Business2Community. I founded DyerNews.com in 2015 to focus on personal finance and the emerging FinTech markets.

Other Articles by Jonathan Dyer

Robinhood Reveals More Details on Upcoming Retirement Account

After officially announcing plans for retirement accounts during an earnings call last month, Robinhood has now revealed more details about the upcoming feature and opened a waitlist for customers. First, Robinhood Retirement will offer both Roth and Traditional IRAs to users. With these accounts, customers will be able to invest in stocks and ETFs. Additionally, accountholders will be able to craft a custom portfolio and will be able to view...

Discover Announces 5% Bonus Categories for First Quarter of 2023

The popular Discover It card — which features 1% on all purchases as well as a slate of bonus rotating categories each quarter — has revealed what purchases will earn cardholders that 5% bonus starting January 1st. For the first quarter of 2023, Discover It cardholders can earn 5% back on grocery store, drug store, and select streaming service purchases. However, there are a few asterisks to note with this offer....

AllWork Raises $4.9 Million From FINTOP Capital 

A FinTech focused on freelancer payroll has closed a significant early-round investment. This week, AllWork announced that it had raised a $4.8 million round. The Series A was led by Nashville-based FINTOP Capital with no other participants. As a result of the transaction, FINTOP's Chris Haley and Rick Holton will join AllWork's board of directors. Previously, AllWork closed a $3.8 million seed round in 2019, bringing their to-date funding total to $8.7...