8 Bad Habits That Invite Persistent Financial Troubles

8 Bad Habits That Invite Persistent Financial Troubles


Bad luck is not the usual cause of most money problems. People with money problems usually have a history of bad money management.

Anyone can handle money problems if they have good habits. Even a small unexpected cost can be devastating if you don’t manage your finances well.

8 Bad Habits That Invite Persistent Financial Troubles

Many bad financial habits could hurt you, but a few are especially bad. Here are eight things that can cause persistent money problems in anyone’s life if not addressed in due time:

Not putting money aside.

People who never have money problems habitually save money every month. If you save some of your money every time you get paid, you’ll always have cash on hand to deal with the inevitable financial emergencies.

Too much or wasteful spending

The more you spend, the less you have left to save. It’s that easy. Spending money on things you don’t need makes you vulnerable and more likely to have money problems. When you spend too much, you end up in debt, which is the worst thing that can happen to your finances.

Too much credit card debt and other kinds of debt

Debt makes it hard to be financially healthy and stable. Getting out of debt can be challenging, and most debts have expensive terms that make them a costly way to spend money.

Use your credit card for convenience, not to buy things you can’t afford.

Understand the difference between good debt and bad debt. If you can’t tell the difference, staying away is better. 

Ignoring bills

No one enjoys having to pay bills. But bills tend to pile up and must be paid at some point. You are still spending money that should be going to them during that time. That’s a huge mistake.

Plan your expenses and allot a budget for the regular ones. 

Paying penalties, fees, and interest regularly.

Did you know that credit card companies make more money from late fees than interest? If you don’t pay back these debts on time, you will have to pay much interest. These penalties can be steep. 

The type of expenses is avoidable with proper budget planning.

Taking money out of your savings, retirement, and investment accounts.

Sometimes, taking money from your savings or other accounts might be okay. But make sure it doesn’t become a habit. Also, make sure you have a good reason.

No budget

Everyone needs a budget. Even a billionaire needs a spending plan. Budgets set limits on money, and those limits help keep money problems from happening.

These days creating a budget and tracking it is easy. There are loads of apps that can help you do this.

Eating out too much.

It costs a lot to eat in restaurants or malls. Even fast food costs more than a good meal made at home. Most meals made at home are also healthier.

It’s okay to do it from time to time. But don’t overdo it.

Practical Tips to Address These Bad Habits

Now that you know the bad money habits that invite persistent financial troubles, here are some practical tips to address them:

  • Make a promise that you’ll save a certain percentage of each paycheck.
  • Look for other ways to amuse yourself besides spending money you don’t need to spend.
  • Put a hard limit on how much you can spend each month.
  • Beware of debt. If you have to use debt to purchase something non-essential, it’s a good bet that you can’t afford it.
  • Pay your bills on time. Use ATMs that don’t require a fee.
  • Spend a few minutes each week paying your bills. Make it a ritual you perform one day a week.
  • Cash-out part of your retirement only in case of emergency.
  • Use savings, investment, and retirement accounts for their intended purposes only. They don’t work well when you take money out of them.


Do any of these sound like things you do?

Think of someone you know who has a good job but still has trouble making ends meet. Count how many bad habits listed above that person is guilty of. Now, think of someone you know who has much money. How many of these bad things do they do?

It won’t be a surprise what happens!

When you have good habits, you get good results. Make sure your money habits are taking you in the direction you want.

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