Money Habits That Will Make You Go Broke
If you’re living paycheck to paycheck – you’re making some mistakes with your money, but they may not be as obvious as blowing your checking account on fancy dinners or the latest tech gadget. Here are the four money habits that’ll make you go broke according to Investopedia.
- Let’s start with window shopping. You don’t have to be in the mall to do it anymore. You can “window shop” online or when catalogs come in the mail. The more things you see, the more things you want, and eventually you’ll whip out your credit card. It’s like being on a diet and walking by a bakery every day. Or being an alcoholic and walking by a bar on your way home from work. Why put yourself in the path of temptation?
- The next habit that can break your budget: Shopping via cell phone. One out of five people do, and retailers are rolling out special smartphone-only deals. Experts say that’s simply impulse shopping on steroids. The easier it is to buy things, the more likely you are to do so. The fix: Before you download a shopping app, ask yourself what specific item you need to buy with it. If there’s nothing in particular, skip it. Why do you think Amazon has that “One click” buying option? The less time you have to think about making a purchase, the more likely you are to make one.
- Another wallet-busting habit: Carrying lots of cash. We all know shopping with credit cards makes you spend more because it doesn’t feel like you’re spending real money, but a cash-only diet can be toxic too. That’s because carrying a lot of cash gives you the feeling of wealth, having extra money to spend. The fix: Every morning, set aside just enough cash you’ll need that day for food, gas, or a movie with friends and not a dollar more. Once the money’s gone, you’re done for the day.
- The final habit that’ll make you go broke:Clipping Coupons. Even if you buy something with a 90% off coupon, you’re still losing money if the item sits in your pantry forever. The fix: Make your grocery list first, then clip the necessary coupons or print them online.
