IncrediTools has vetted the best services in these industries, click to view:

Bad Money Habits and How to Break Them

It’s no secret that bad money habits can lead to financial disaster. In fact, bad spending habits are one of the main reasons why people end up in debt. If you’re struggling with your finances, it’s time to break those bad habits and get back on track!

In this article, we will discuss some bad money habits and how to break them.

Not Having An Emergency Fund

One of the worst money habits you can get into is not having an emergency fund. An emergency fund is vital for covering unexpected expenses, such as a job loss, car repairs, or medical bills. Without an emergency fund, you’ll likely have to rely on credit cards or loans to pay for unexpected costs, which can quickly get you into debt.

The Solution:

To break this bad habit, start by setting aside a few hundred dollars into an emergency fund. Then, make it a goal to build up your fund to cover three to six months of living expenses. Once you have a solid emergency fund in place, you’ll be better prepared to handle unexpected costs without going into debt.

rupixen com Q59HmzK38eQ unsplash

Overspending on Credit Cards

Credit cards can be a helpful tool for managing your finances, but only if you use them wisely. One of the worst money habits is overspending on credit cards and then carrying a balance from month to month. This can quickly get you into debt and damage your credit score.

If you’re worried about debt, take a look at what government relief programs are available. Learn more at Freedom Debt Relief.

The Solution:

If you’re guilty of overspending on credit cards, the first step is to cut up your cards and close your accounts. Then, create a budget and make a plan to pay off your debt. Once debt-free, you can start rebuilding your credit score by using a secured credit card or becoming an authorized user on someone else’s account.

Impulse Purchases and Reckless Spending

Whether it’s buying that new gadget you’ve been wanting or splurging on a fancy dinner, it’s easy to let your spending get out of control. However, these impulse purchases can quickly add up, leaving you with less money in your bank account than you intended. Not only will it drain your bank account, but it can also prevent you from saving for your future.

The Solution:

The first step is to become more aware of your spending. Track where you’re spending your money and see where you can cut back. Then, create a budget and stick to it. When you’re tempted to make an impulse purchase, take a step back and ask yourself if it’s really worth the money.

Not Having a Budget

A budget is a vital tool for managing your finances and ensuring that you’re not spending more than you can afford. Without a budget, it’s easy to overspend and get into debt.

The Solution:

If you don’t have a budget, now is the time to create one. Start by tracking your income and expenses for one month. Then, use this information to create a budget that allocates your money to different spending categories. Once you have a budget in place, make it a goal to stick to it each month.

jason briscoe amLfrL8LGls unsplash

Not Saving or Investing

Without enough saved up, you may have to rely on credit cards or loans, which can add to your debt and interest payments. Additionally, not saving for the future can mean you miss out on opportunities to grow your money. For example, you may miss out on potential investment opportunities or be unable to take advantage of employer matching programs.

The Solution:

If you want to break this bad habit, start by setting aside money each month into a savings account. Then, make it a goal to invest in your future by contributing to a retirement account or investing in stocks and mutual funds. By saving and investing for the future, you’ll be better prepared for whatever life throws your way.


Bad money habits can quickly get you into debt and ruin your financial future. A good start is learning about bad money habits and how to break them. Start by creating a budget, cutting up your credit cards, and fighting the impulse to buy things you don’t need.

Related >  11 Legit Ways to Make Good Money Right Now