by Ann Brown
Never see to save any money? Maybe you’re sabotaging yourself with terrible financial decisions. Here are five bad money habits to break:
1. • Always Overspending: Can’t stop impluse shopping? Before you hit the store have a plan. “Make a shopping list before buying. Think about want versus need,” says Jon Lal, smart shopping expert and founder of coupons and cash back website BeFrugal.com.
2. • Living Without a Budget: “How can you possibly save money if you don’t know where it’s going?” asks Kristl Story of TheBudgetDiet.com. “Establish a written budget and track expenses. This can be done the old-fashioned way with pen and paper or try free services like Mint.com.”
3. Keeping Up with the Jones: Do you worry about what your friends have and you don’t? Just because your neighbor or your friends own the latest products, doesn’t mean you need them as well. “This is one of the reasons that so many people are in financial trouble right now. We try to emulate others that we think have it all and buy things we cannot afford to look good on the outside,” says Danny Kofke, author of How To Survive (and perhaps thrive) On A Teacher’s Salary and A Simple Book of Financial Wisdom: Teach Yourself (and Your Kids) How to Live Wealthy with Little Money. “Establish priorities. Doing what is right for you (and not someone else) is a value many “wealthy” people possess. Having this value will lead to setting priorities for you and your family.”
4. • Having a Fear of Money: Fear of losing money, fear of not making money, fear of not enough money…all these fears can be counterproductive. “A bad habit is looking at money in terms of fear and scarcity,” notes Steve Siebold, author of How Rich People Think. “The better approach is to see money from the point of view of freedom, opportunity, abundance and possibility.”
5. • Thinking About Money Emotionally: Take your feelings out of your financial situation. “A bad habit is to look at money from an emotional standpoint,” notes Siebold. “The better approach is to use logic when it comes to your finances. In other words, don’t get caught up in the moment about a great deal you think you are getting on something you really don’t need.”