Spending Habits That Make You Look Broke

At some point in your life or even now you have had at least one bad spending habit. My bad spending habits started in college when I was approved for my first credit card. This type of behavior leads to unnecessary debt and can lead to financial crises such as bad credit, collections, judgments or wage garnishments. 

These habits can be inherited from parents, relatives, siblings or friends. These habits usually start or are implanted in your subconscious as a child and stay with you throughout adulthood.

Determine where the bad spending habits started. Stop these bad habits now will save you time, money and stress in the future.  

Examples of bad spending habits are: overspending or spending more than you earn, impulse or emotional shopping, using payday loans or check-caused stores, using money orders instead of writing checks or using online banking; talking about your purchases and the cost.  Here are x way to stop bad spending habits that make you look poor. 

RECORD SPENDING HABITS

To stop bad spending habits write down your daily spending on paper and pen, Word or Excel or use a smartphone app. Assess your spending each week to determine areas where you can reduce spending.

Create a budget to track spending or use a budget app. Create realistic financial goals to help you stay on track with your spending. Go on a 30 day spending fast. Stop charging and buy only basic necessities.

Use voice recording, set alerts or reminders when bills are due and any other tasks to help you eliminate your bad spending habits. Seek professional therapy to help change your mindset.

DO RESEARCH

Comparison shop to obtain at least 3 price quotes to find the best deal. Search online and on social medial sites for discounts and specials. Sign up for email or text alerts. Use comparison sites like Amazon, Bizrate and Price Grabber or smartphone apps like BuyVia or RedLaser.

SET REMINDERS

Sign up for email or text alerts about coupons, discounts or specials on item your regularly purchase. Use cash back or rewards points earned to make purchases.

PAY LESS

You no longer have to pay full price for any item. You can comparison shop, ask for price matching or negotiate to obtain a lower price.  Reduce temptation when shopping and leave your debit card or check card at home.

How to Stop Bad Spending Habits That Make You Look Poor

At some point in your life or even now you have had at least one bad spending habit. My bad spending habits started in college when I was approved for my first credit card. This type of behavior leads to unnecessary debt and can lead to financial crises such as bad credit, collections, judgments or wage garnishments. 

These habits can be inherited from parents, relatives, siblings or friends. These habits usually start or are implanted in your subconscious as a child and stay with you throughout adulthood.

Determine where the bad spending habits started. Stop these bad habits now will save you time, money and stress in the future.  

Examples of bad spending habits are: overspending or spending more than you earn, impulse or emotional shopping, using payday loans or check-caused stores, using money orders instead of writing checks or using online banking; talking about your purchases and the cost.  Here are x way to stop bad spending habits that make you look poor. 

RECORD SPENDING HABITS

To stop bad spending habits write down your daily spending on paper and pen, Word or Excel or use a smartphone app. Assess your spending each week to determine areas where you can reduce spending. 

Create a budget to track spending or use a budget app. Create realistic financial goals to help you stay on track with your spending. Go on a 30 day spending fast. Stop charging and buy only basic necessities.

Use voice recording, set alerts or reminders when bills are due and any other tasks to help you eliminate your bad spending habits. Seek professional therapy to help change your mindset. 

DO RESEARCH

Comparison shop to obtain at least 3 price quotes to find the best deal. Search online and on social medial sites for discounts and specials. Sign up for email or text alerts. Use comparison sites like Amazon, Bizrate and Price Grabber or smartphone apps like BuyVia or RedLaser.

SET REMINDERS

Sign up for email or text alerts about coupons, discounts or specials on item your regularly purchase. Use cash back or rewards points earned to make purchases.

PAY LESS

You no longer have to pay full price for any item. You can comparison shop, ask for price matching or negotiate to obtain a lower price.  Reduce temptation when shopping and leave your debit card or check card at home.

Does A Messy Purse Result in Messy Finances

Does it take you forever to find something in your purse? Does your shoulder ache from all the stuff you carry in your purse every day? Do you have to pull everything out of your purse to find something? If this sounds like you, you are not alone.  I recently just organized my purse which reduces the time it takes for me to find something and I no longer have to pull everything out of my purse to find an item. It never occurred to me to organize my purse even though I organize everything else, my home, my car, my office, etc.

The way you organize your purse is an indication of how you manage your finances. If your purse is organized neatly it shows that you organize your money and your finances as well as your life.

If you keep all of your receipts in your book along with your checkbook but don’t balance your checkbook on a regular basis you risk the chance of having an overdrawn account.

If you keep everything in your purse including receipts from 2 years ago indicates that you are not organized with your money, your finances or your life.  Carrying a designer purse may show that you value image and appearance but usually doesn’t provide a lot features to help you keep your purse organized.

If you never have cash or never have enough cash that is a red flag that you need to adjust your spending habits quickly to prevent a financial crisis such as filing for bankruptcy or foreclosure or getting a judgment or tax lien.

If you have purse money in your purse but never know how much or have your money balled up or crinkled up you probably don’t know how much you spend either.  This is a warning that you need to create a budget.  If you don’t manage the money you have now when you have the ability to earn more you will not be able to manage it which can result in financial problems. Here are 10 ways to organize your purse:

1. Sort your purse as you would sort your bills and financial paperwork
2. Leave unnecessary items out of your purse such as: mail, water bottles, receipts, multiple credit cards, shoes, hats, gloves, hair products, trash, snacks, umbrella, etc.
3. Keep smaller items in a separate bag that you can carry or leave in the trunk of your car.
4. If you have children keep their snacks, toys, etc. in a separate bag.
5. Clean and organize your purse at least once a week.
6. Leave your checkbook, credit cards and debit card at home unless you know you are going to use it. You can keep one credit in your wallet for emergencies.
7. Organization is a trait that carries over into all aspects of your life. If you have a messy purse you probably have a messy home or messy room in your home or a messy car or work area. 
8. Keeping your purse organized is a tedious task but it can help you to organize other areas of your life such as: keeping your house clean, organizing your finances, organizing your time, etc.
9. If you can’t manage your purse you can’t manage your finances which make it difficult for you to achieve financial success.

Remember a messy purse equals messy finances so don’t be messy.

What to do when your spending habits become a problem

                                                               

 

Last year, consumers spent $10.7 trillion shopping. With that much money, you could buy over 2000 aircraft carriers, 300 private islands, and still have money left over for a latte. Most consumers have had or currently have at least one bad spending habit. Bad spending habits are just that habits and habits can be broken. 

Debt used to be a bad word and being in debt used to be a bad thing.  Unfortunately the credit card and banking industries made it so easy for consumers to get credit cards that they people got caught up in buying and forgot about how they were going to pay back that debt.  This also made it difficult to think about buying in terms of needs vs. wants.  Since credit is so easy to use many consumers who deprived themselves of their wants were now able to buy as many wants as they liked.    

Spending habits are usually inherited from parents or family members.  If you were not taught how to manage your money while growing up or did not see good example of money managing, chances are you will have bad credit at least once in your Iifetime.  If you don't much money left over after you get paid this is an indication that you spending habits have become a problem. Everyone should reduce spending no matter what your situation to ensure you live well below your means so that if a financial crisis occurs you can overcome it without having to make drastic changes.

It is better to reduce spending because it is much easier to scale back by making small adjustments to your life than to make drastic changes.  You don't have to sacrifice quality just because you reduced spending. Your spending habits may become a problem if you:

1. Buy things you don't need
2. Spend money you can’t pay back
3. Bounce checks or pay overdraft fees, late fees or other fees
4. Don’t track your spending (no spending plan or budget)
5. Don't have a saving or retirement account
6. Don't have health, life or disability insurance
7. Live paycheck to paycheck
8. Have creditors calling your house day and night or sending harassing letters
9. Have credit cards that are maxed out
10. Unable to buy or pay for basic necessities
11. Use risky financial products such as:  payday loans, cash advances, retirement loans, home equity loans, etc. to pay bills or debt
12. Borrow money to pay your bills
13. Avoid phone calls from creditors
14. Bounce checks or have overdrawn bank accounts
15. Bad credit

Here are 13 ways to stop your spending habits from becoming a problem.

1. Pay bills online or setup automatic paycheck deduction
2. Create a spending plan or budget
3. Setup email or text alerts for your bank accounts
4. Downsize or downgrade your lifestyle
5. Earn extra income
6. Reduce spending by 30-50%
7. Adjust your W-4 instead of getting a huge tax refund at the end of the year
8. Stop charging and pay for items with cash
9. Get current on late accounts – setup payment plans to pay down debt
10. Go on a spending fast for 14, 21 or 30 days
11. Join support groups to help people who have trouble managing their money
12. Sign up for financial tips from free newsletters or websites
13. Save money

How Men and Women Spend Their Money

                                                         

Results from the FINRA Investor Education National Financial Capability Study revealed that women with low levels of financial literacy knowledge were more likely to engage in bad credit card behaviors such as incurring late fees than men with low levels of financial literacy knowledge.  

However, there were no differences in behavior between men and women with high financial literacy knowledge. Increasing financial literacy knowledge can improve credit card management and reduce or eliminate gender based differences in credit card behavior.

Financial literacy is linked to retirement planning, investing, quick cash methods such as payday loans or cash advances, and generating wealth. A vast understanding of financial literacy improves credit card behavior for men and women.

Women were more likely to carry a balance, pay the minimum payment on their credit cards and be charged a late fee.  Women were less likely to pay their credit card balance in full each month and comparison shop for credit cards.

Women trail behind in finances and usually have low confidence when trying to set and obtain financial goals.  Many women shy away from finances and don’t view managing their finances as a high priority.  Many women focus more on their appearance and spend their money on shopping or entertainment.  Women put other’s needs first and focus on other priorities such as their children, college funding, etc.  However, women must put their needs first especially regarding finances.

The difference in how women view money may be related to how parents and educators teach girls about money.  These girls grow up and continue to use the same lessons they learned about money as a child.  Women are more emotional when it comes to spending.  Women like to spend money on things with little to no value like makeup, clothes, purses, shoes, etc. 

Many women are taught to find a husband who will take care of them which may prevent them from learning about the various aspects of financial literacy such as budgeting, investing, savings, debt management and retirement planning. Many women feel they don’t need to learn about finances because their husband will manage the finances. 

Women have to change the way the think about money and set an example for their daughters and future generations of girls.  If you want to own a home, go on vacations and live a certain lifestyle you have to save, invest and make good financial decisions.

Many women are forced into different roles when a life-changing event occurs.  Many women find themselves unemployed, divorced or widows and didn’t know how to manage their finances.  This can lead to making bad financial decisions based on emotion and mistakes that may take years to recover from.

According to the Prudential and Hearts & Wallets study women feel less confident than men in their understanding of financial products, their ability to make financial decisions and their perception of their current economic standing.

The financial services industry caters to men in the way it presents and discusses information and products.  Women don’t make quick decisions regarding finances and are concerned with long-term results.  Women are not proactive about learning how to manage their finances and take it for granted that they won’t need to learn because their husbands will do it for them.  

Women earn less than men but have longer retirements due to the fact that women live an average of five years longer than men. Women have higher health care costs throughout their lives.  Women should be saving more than men and investing their savings more aggressively to get a strong long-term return that will grow their portfolios.

Women who don’t manage their finances properly directly affect men. If your wife or girlfriend always asks you for money or needs help with her bills, if you provide financial support to your mother because she has little to no savings or retirement or your daughter keeps borrowing money because she can’t pay her bills - this is a direct result not properly manage their finances and lack adequate financial literacy knowledge.

Men are self-directed learners and use the Internet to find out information more than women.  Women tend to rely more on personal networks with friends, family and financial planners, and they take a networking approach to gathering information or get validation. Men and women need to have a strong grasp financial literacy knowledge to help them make sound financial decisions that will improve their lives. 

Finances - Women vs. Men

Results from the FINRA Investor Education National Financial Capability Study revealed that women with low levels of financial literacy knowledge were more likely to engage in bad credit card behaviors such as incurring late fees than men with low levels of financial literacy knowledge.  

However, there were no differences in behavior between men and women with high financial literacy knowledge. Increasing financial literacy knowledge can improve credit card management and reduce or eliminate gender based differences in credit card behavior.

Financial literacy is linked to retirement planning, investing, quick cash methods such as payday loans or cash advances, and generating wealth. A vast understanding of financial literacy improves credit card behavior for men and women.

Women were more likely to carry a balance, pay the minimum payment on their credit cards and be charged a late fee.  Women were less likely to pay their credit card balance in full each month and comparison shop for credit cards.

Women trail behind in finances and usually have low confidence when trying to set and obtain financial goals.  Many women shy away from finances and don’t view managing their finances as a high priority.  Many women focus more on their appearance and spend their money on shopping or entertainment.  Women put other’s needs first and focus on other priorities such as their children, college funding, etc.  However, women must put their needs first especially regarding finances.

The difference in how women view money may be related to how parents and educators teach girls about money.  These girls grow up and continue to use the same lessons they learned about money as a child.  Women are more emotional when it comes to spending.  Women like to spend money on things with little to no value like makeup, clothes, purses, shoes, etc. 

Many women are taught to find a husband who will take care of them which may prevent them from learning about the various aspects of financial literacy such as budgeting, investing, savings, debt management and retirement planning. Many women feel they don’t need to learn about finances because their husband will manage the finances. 

Women have to change the way the think about money and set an example for their daughters and future generations of girls.  If you want to own a home, go on vacations and live a certain lifestyle you have to save, invest and make good financial decisions.

Many women are forced into different roles when a life-changing event occurs.  Many women find themselves unemployed, divorced or widows and didn’t know how to manage their finances.  This can lead to making bad financial decisions based on emotion and mistakes that may take years to recover from.

According to the Prudential and Hearts & Wallets study women feel less confident than men in their understanding of financial products, their ability to make financial decisions and their perception of their current economic standing.

The financial services industry caters to men in the way it presents and discusses information and products.  Women don’t make quick decisions regarding finances and are concerned with long-term results.  Women are not proactive about learning how to manage their finances and take it for granted that they won’t need to learn because their husbands will do it for them.  

Women earn less than men but have longer retirements due to the fact that women live an average of five years longer than men. Women have higher health care costs throughout their lives.  Women should be saving more than men and investing their savings more aggressively to get a strong long-term return that will grow their portfolios.

Women who don’t manage their finances properly directly affect men. If your wife or girlfriend always asks you for money or needs help with her bills, if you provide financial support to your mother because she has little to no savings or retirement or your daughter keeps borrowing money because she can’t pay her bills - this is a direct result not properly manage their finances and lack adequate financial literacy knowledge.

Men are self-directed learners and use the Internet to find out information more than women.  Women tend to rely more on personal networks with friends, family and financial planners, and they take a networking approach to gathering information or get validation. Men and women need to have a strong grasp financial literacy knowledge to help them make sound financial decisions that will improve their lives.