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Toxic Financial Habits to Avoid

Updated on September 1, 2016

Toxic Financial Habits to avoid

Top 5 Toxic Financial Habits - and how to fix them

Let’s face it, we all have some bad financial habits.

For me, it comes from things I did or didn't learn as a child. Regardless, we need to figure out what our bad habits are and break them. You can't wait until retirement to find out you didn't save enough!

1. Stop comparing yourself to other people

You know you want to install that pool because the neighbor did, but you just can't stop yourself.

Perhaps your kids always complain that everyone else has new gadget X.

You really don't want to compete against people on who has more expensive junk. You are just competing to throw your money out the window on useless things.

2. Stop the emotional spending

No retail therapy, no eating when you're sad, quit drinking booze for no reason.

Sure, a bite of food here and there won't break the bank, but if you do it compulsively it can really add up.

3. Don't argue with yourself

When part of you is saying you really don't need something, that's the part you need to listen to.

You want a new car but know you don't need it. Which side wins?

It doesn't matter, going back and forth with yourself is already losing.

If part of you says no, just go with it.

4. Stop hiding from the facts.

People get into bad financial situations and just hide from it. They think the bank won't foreclose or they'll never get evicted even if they don't pay rent. Unfortunately, these people end up on the street eventually and reality sinks in.

5. You forgot to think about something big

Vehicle maintenance, home repairs, all these things add up and you probably never accounted for them when you made your purchase.

People buy way more expensive cars than they should and don't realize their oil changes will cost $70 for their unique oil requirements. Or their expensive house costs thousands of dollars per year in upkeep and maintenance.

By forgetting these things you are going to trap yourself.

DO you have toxic habits?

What toxic habit do you have?

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Avoid Bad Financial habits

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    • rentalinvesting profile image

      Sarah D 11 months ago from New York City

      I've seen a lot of people with $40,000 or $50,000 cars but they live in apartment complex in a place where houses are pretty cheap.

      It's funny but sad at the same time. Cars are a terrible way to spend money.

    • nipster profile image

      nipster 11 months ago

      I really like number 5. Its funny because I see people all of the time who have cars they can make payments on but the maintenance costs are unfathomable.