This is part 2 of Money Habits To Avoid. If you missed part 1, please search my blog post.
3. Using Credit Cards to Get By — You know what I mean, you use your credit card because you don’t have the cash to purchase … This is a red flag if this is an every day, week, or month occurrence. Credit cards definitely havea place in your finances, but they are not the means to spending more than you can afford on a regular basis.
4. Discretionary Spending to Impress — This may have happened to you, I know it did for me when I was coming out of college. You are out with friends and you offer to pick up the tab. Maybe you want them to think you are doing better than you actually are, maybe you want to seem on par with your friends, whatever the case, no one expects you to pay more than your fair share. If you can’t afford to do something at this point, maybe you politely decline.
5. Emotional Spending — Just like emotional eating, emotional spending can be a problem. You are upset, and you go out and buy a …… Yes, you feel great in the moment, but did you need a … ….? Was it money you were planning on spending? Probably not. You know what you need to purchase, make a plan and stick to it.
Check out the next posts to find out the rest of the Money Habits To Avoid.