Solving money problems doesn’t happen overnight. No matter how carefully you plan a budget, you still have to follow through on your plan day after day in order to save money and improve your financial situation. As such, it’s crucial not only to build good financial habits but to break poor spending patterns as well. Learning how to avoid and prevent unnecessary purchases over a long period of time can go a long way toward helping you reach financial stability. To that end, here are four bad spending practices that you should strive to break right away:
Procrastination
Putting off a task until a later date may, in some rare instances, be a sound decision. More often than not, though, procrastinating is a poor life choice. If you notice any sort of problem –– ranging from a heel spur to a worn brake pedal –– take the time now to sort it out. Ignoring an issue, no matter how small it may seem, can lead to bigger problems, and bigger bills, down the line. Spending a little now can save you a lot later.
Double-Buying
It may seem obvious, but consumers should avoid purchasing multiple versions of the same product. Yet, many individuals inadvertently buy new items when they have perfectly good products they could use instead. Before you set out to buy something new, make sure to check your attic, closet, or basement to ensure you don’t have a similar item collecting dust somewhere in your home.
Unused Memberships & Services
Many companies entice consumers to sign up for memberships or services at a reduced price for a short period of time. However, if you’re not careful, you could end up paying much more for a membership or service than you realize. Review your bank statements every month and cancel any recurring expenses for memberships or services you don’t use consistently. Analyzing your spending habits is one of the best ways to turn over a new leaf.
Impulse Purchases
So many advertisements are designed to inspire immediate action. While it may be impossible to eliminate all impulse purchases from your budget, you can take action to avoid some of the more egregious, knee-jerk buys all the same. A good rule of thumb to follow in this regard involves waiting at least 24 hours before making a substantial purchase. If after an entire day you still feel compelled to buy something, it’s probably worth the investment. If not, then move on with your life and be happy you saved some cash! Staying disciplined like this over time can lead to significant savings.
Photo by Sharon McCutcheon on Unsplash