10 money habits that are keeping you poor, and how to overcome them

10 money habits that are keeping you poor, and how to overcome them

  13 Jan 2024

Have you ever questioned where your money went?

Do you live paycheque-to-paycheque?

No matter what your income, good money habits can help to build wealth and set you up for financial success… but bad money habits can do the opposite.

Bad money habits can see you dwindle your savings (if you have any) by continuously spending more than you earn.

These might even be habits that you don’t even realise, yet are detrimental to your financial success.

Well, here are 10 money habits that can be eating away at your hard-earned money and keeping you poor, and how to overcome them.

  1. Not having (and living to) a budget

No matter what your income, having a realistic and well-planned budget is key to financial planning and success.

Without a budget, your spending can get out of control (think impulse purchases) and leave you questioning where all your funds went at the end of the month.

So make a budget, and stick to it!

  1. Relying too heavily on credit

Racking up credit card debt or taking out a payday loan is an easy way to splash out on the flashy item you’ve always wanted… but the reality is, if you need credit to buy it, you can’t afford it.

Racking up credit card debt is one of the most expensive bad-money habits you can have.

Not only can high interest rates make the debt almost impossible to pay off, but high balances on your credit card, especially if you miss a payment, can damage your credit score.

So avoid throwing money down the drain and pay off your credit card balance in full every month to avoid the fees, and if you can’t do that, perhaps get rid of it altogether.

  1. Not keeping a record of your money

This ties in with the concept of budgeting.

Tax Budget Finance Money

If you don’t know where your money goes how much your bills are, and who they are payable to, how can you possibly keep on top of your finances?

The reality is, that many are aware of their major expenditures, but the smaller ones slip through the cracks and end up eating away at our finances.

By keeping track of your finances and writing down exactly how much you need to pay, and to who can help you budget for the rest.

Also, keeping a close eye on your money ensures that if there is fraudulent activity on your account, it’s identified and dealt with straight away.

  1. Prioritising the wrong things

Saving money and building wealth doesn’t come without a few sacrifices.

Want to buy an investment property, upgrade your home or take a holiday?

Living Expenses

Perhaps you need to cut back on some of life’s unnecessary guilty pleasures.

We’ve all heard it before, but making a coffee at home every day instead of buying takeout can save you a fortune.

It’s a small change but prioritising your home renovation over your daily coffee can make that dream home goal come along faster and more easily.

Not only do you need to be clear about your goals and priorities, but they also need to be regularly reviewed.

  1. Ignoring your debt

The only thing worse than racking up unnecessary and expensive debt is ignoring it altogether when it comes time to pay it off.

Worryingly, when the financial woes become too overwhelming and the debt spiral kicks off, many people stick their heads in the sand and ignore that spiral worsening.

Debt

It’s a vicious cycle and could leave you with nothing.

Instead, consider consolidating your debt and paying off an achievable amount regularly.

Getting on top of your debt before it gets on top of you is the only way to avoid losing it all.

  1. Poor shopping etiquette

Spending more to save more?

Shopping when bored or (for food) when hungry?

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