Sometimes life starts to trample on your finances. As responsibilities add up, managing credit card debt becomes challenging. There are a few bad spending habits you might fall into that can compound the financial trouble you have. Being aware of these bad spending habits and your own financial personality can help you to avoid unnecessary debt.
Bad Spending Habits to Avoid
Do you often stack up ATM fees? ATM are easy to avoid if you pay attention to your banking policies. It’s probably time for you to consider opening an account at a bank more convenient to you or even switching banks if this is a consistent battle.
Just like ATM fees, late fees for missed payments are also very easy to avoid. You can put routine monthly bills on an automatic payment plan through your bank or credit card company. This will ensure that your credit card debt is paid on time.
Eating Out Too Many Times?
Your dining pattern is another significant example of bad spending habits. Answer these questions:
- How many times a week do you go out for dinner?
- Do you buy your coffee every day?
- Do you buy lunch every day?
If the answer to all these questions were ‘yes’, it’s time to make a change. You can avoid any more consumer debt by eliminating these bad spending habits. Consider drinking the free coffee at work and bringing a packed lunch. The cost of weekly groceries will be much less compared to the money you spend on buying lunch every day. Limit the number of times you go out for dinner every week, and make a special meal at home instead.
It’s thrilling to hit the gas pedal to the floor and take that handbrake turn. However, fast and aggressive driving is dangerous and can cost you big bucks in terms of accidents, traffic tickets and increased insurance premiums. Even if you survive those hazards, aggressive driving can lower your gas mileage by as much as a third. You will increase wear and tear on your vehicle. Therefore, avoid these bad spending habits to make sure you are working towards debt elimination.
Do You Smoke?
The love for the smoke break you take is a costly affair. While the cost of cigarettes itself is high, it can also rack up potentially big medical bills. If you smoke a half a pack a day priced at $3.50, it’s over $1200 a year. Consider eliminating this bad spending habit sooner than later if you are serious about both physical and financial health.
It is important that you make the right choice when shopping day to day items, as well as anything else. Generic items can be as good as any branded items and is only a fraction of the cost. Therefore, make smart shopping choices to avoid potential financial trouble. Avoiding these bad spending habits comes in handy when paying off debt is your priority. Consider shopping sale items more often and buying in bulk.
Avoiding these bad spending habits can make a big impact on your finances and life. Are there any other bad habits you have avoided to help your finances?