5 Bad Financial Habits to Avoid

You may be wishing you could save more for retirement, but feel that you just don’t have any extra money. Or, you may be already retired and wondering where all your money is going. Watch out for these five bad financial habits, because they can have an enormous negative impact on your financial future.

Impulse shopping. Shopping is fun, and retailers understand shopper psychology very well. Watch out for items placed near cash registers, and never grocery shop when you’re hungry. It’s best to make a list before you leave the house, rather than aimlessly wandering through stores buying whatever looks tempting at the time.

Buying things you can’t afford. Human beings are social creatures, and part of our psychology often leads us to a “keeping up with the Jones” mentality. Aside from social pressures, it’s also just hard to say no to yourself when you really want something. But if you need to finance a purchase other than a home, college education, or car, sleep on it before whipping out that credit card. And when it comes to homes, cars, and college tuition, it can be easy to overspend there, too. Be honest with yourself about what you can really afford.

Neglecting to research large purchases. If you’re reading this article, you have an internet connection. The great thing about the internet is that you can access any type of information you could possible need. So why walk into a store and simply pay the price of any item sitting on the shelf? Research large purchases before making them, and you can save hundreds or even thousands of dollars.

Indulging in bad habits. One problem with addictions is that they compel us to spend money on item that generally are not useful or necessary. Keep your receipts for one month, and track your spending on items like beer, wine, cigarettes, coffee, and so on. You may discover that you’re spending far more than you believe to fuel unhealthy habits.

Ignoring money issues. In many households, money is not discussed enough. Make sure to communicate and agree upon financial priorities, so that household members can work together to achieve financial freedom.