9 Bad Money Habits Hindering Your Money Goals

This post will be sharing 9 bad money habits that are preventing you from achieving your money goals.

A lot of us have grandiose money goals that we hope to achieve someday, one way or another.

But the problem is that we’re so focused on the future and not addressing the daily habits that could potentially hinder our goals.

For instance, if you plan to start investing in startups by age 30 and still struggle with minor issues like sticking to your weekly budget, you might not be able to achieve that goal as fast as you want.

Technically, that’s not entirely a bad thing.

But we lose out on the personal fulfilment of smashing our goals.

Personally, I’ve been able to achieve my money goals because I have a good relationship with money.

I’ve built my self-discipline to the point that I barely overspend or go over my budget.

How else would I have been able to start a business, save, and move to a new country before 25?

So, if you’re struggling with bad money habits and are ready to identify them and make the necessary improvements by shifting your money mindset, this post is for you.

Here are 9 Bad Money Habits You Should Work On To Achieve Your Money Goals.

In no particular order;

Overspending

A lot of us are guilty of going way out of our budgets. Myself included.

It’s okay when it happens a few times, but when it becomes a habit, it becomes a problem.

Most of us underestimate the power habits have on our lives.

To fix this, create a budget and train yourself to stick to it.

You’ll have a budget for everything if you’re anything like me.

So, whatever you want to buy, wherever you want to go, always ensure you have a budget to reduce your chances of overspending.

Learn an easy way to track and save money.

Not having a budget at all.

Budgeting might be over-flagged, but there’s a reason why it is so key to achieving your financial goals.

Creating, following and sticking to your budget helps you build financial discipline.

You might not even realize it until it gradually becomes a habit.

After a while, it slowly becomes part of you until one day, you realize how much it has saved you in the long run.

Yes, every little coin adds up quickly.

If you’re not sure where or how to start budgeting, you will need a Budget Planner. It gives you a step – by step guide on how to create a budget based on your income and lifestyle. It also helps you track your debts, savings, investments and stay on track with your money goals. Get one here.

Late Bill Payments

Are you ready to adult if you’re not automating your bills in 2021?

There’s really no reason why you should be paying your bills late.

There are a lot of apps on the market that will help you automate your bills so you’re never late again.

Personally, I use my bank app to automate my bills.

This way, I don’t need to think about it or forget to pay them.

My payments go out on the same day, at the same time, every single month.

As a result of my solid budget, I always plan my money ahead for your month.

That way, I’m not tempted to spend it.

Late Credit Card Payments

Still, under bills, another thing that will set you back on your money goals is allowing your credit card debt to pile up.

As a personal rule, I never allow myself to rack up any debt.

There’s a way debt drags you back because when you eventually become financially free, you must sort it out first.

Instead of investing money into your future, you spend a considerable chunk clearing your debt.

So, if you have the cash, try to pay your credit card bills on time.

Spending Your Emergency Fund

I’m sure you know that every employed adult should have an emergency fund.

You need at least three months’ worth of expenses stored away for a rainy day.

This could come in the form of a job loss, a loss of a loved one or any life-threatening event.

When you have already set aside your emergency fund, you have no business spending it on things that are not emergencies.

To fix this, store the money far away from you so that you’ll be charged a fine if you withdraw it for no valid reason.

This is what I did to save for my trip. In return, you’ll be helping yourself build financial discipline and live within your means by sticking to your budget.

Here are 6 Ways To Find Emergency Cash Fast!

Not Having Any Form Of Savings

A lot of us don’t have savings because we believe that we don’t earn enough.

The truth is, even when you eventually start to earn enough, you’ll still struggle to save because you haven’t adopted a saving habit.

It’s as simple as that.

A massive chunk of being financially disciplined boils down to your money habits.

To fix this, start by saving your loose change.

Using a bank app, determine if you can automate your savings.

Anytime you purchase, the app will save the change for you.

Don’t think about how little the money is because it adds up quickly.

Another way to learn to save is to be intentional about your savings.

Look at your budget and find areas where you can save some money.

If you can’t find much, it’s time to get a second source of income.

If you’re struggling with your Personal Finance and you’re not sure how to ditch your bad money habits, improve your money mindset and achieve your financial goals, then I highly recommend the Clever Girl Finance book.

Paying For Unused Subscriptions

I saw a tweet the other day where someone said the market of people who forget to cancel their free subscription trial is worth billions.

Stop paying for subscriptions you never use.

You’re literally giving your hard-earned money to these big corporations.

Every quarter, I like to streamline my subscriptions. If I haven’t used it in three months, it gets cancelled.

Sometimes, if I have a backlog to cover, e.g. books, I pause my subscription until I finish my current books.

Here are 15 Quick and Easy Ways To Save Money

Not Having Any Form Of Investments

This is one area I’m really slacking but it’s because I’ve moved countries and my previous investments are not profitable for my current financial situation.

So, I still need to do more research, which is where I’m currently.

With all the information available, you have no excuse to not have an investment portfolio in 2021.

I’m currently reading Grow Your Money; a personal investment book by a Certified Financial Expert for beginners who want to learn the basic foundations of investing. I definitely recommend it.

Not Organizing Your Financial Records.

Some of us are bad at organization, and we must turn our homes upside down to find specific documents.

This should not be the case.

At every point in time, you should know where your financial records are.

If you’re not sure what they comprise, they are;

• Birth Certificates & Passports
• Tax returns
• Loan documents
• Banking & Investment Details
• Social Security Cards
• Insurance policies
• Bank statements
• Bill payment records.

If you’re organizing your records digitally, ensure they are in a reputable encrypted cloud account.

Get a fireproof file organizer for the physical copies to secure your documents.

How To Curb Your Bad Money Habits

Now that you’re aware of some of your bad money habits, how do you curb them?

What are the steps you need to take to intentional curb them?

• Identify and list all your bad money habits that you can remember. If you’re unsure what they are, review your bank statements and your spending habits.
• For each habit, write down the triggers or behaviours that tempt you to give in to this habit. Personally, mine is a charity store. I’m always tempted to go into one of them. I intentionally avoid the route when I know it’s not in my budget. This helps me stay focused.
• When you’re triggered to engage in those habits, come up with an alternative plan of action. For example, take a different route or avoid the area entirely.
• Create a reward system for consistency and not returning to your old habits. For me, this means splurging on a budgeted charity store haul once in six weeks as opposed to my bad habit of visiting every week.

In Conclusion,

I hope this post and the resources have helped you identify and curb the bad money habits preventing you from achieving your goals.