16 Bad Money Habits We Are Leaving Behind in 2023

2023 is coming to a close and there are some things that we are going to leave in 2023 and not bring into 2024 with us. These bad money habits are going to stay in our personal history books and not come into the New Year with us!

One thing on all of our minds lately is how to save money and live the kind of life we want. Don’t let bad money habits keep you from getting ahead. We break bad money habits down. Learn how here.

1. Impulse Buying

Happy black woman, face and shopping bags for fashion or style against a white studio background.
Image Credit: PeopleImages.com – Yuri A/Shutterstock.

Going to the grocery store without a list is a recipe for disaster. Impulse buying happens when we don’t have a clear view of what we want or need, so we get whatever strikes us at the moment. Unfortunately, that cart full of quick snacks won’t last long and we’ll be forced to do the walk of shame back to our supermarket for actual food.

2. Not Budgeting or Tracking Expenses

Glass jar with coins, with a sticker saying Budget, on a blue background..
Image Credit: Aleksandr Grechanyuk/Shutterstock.

In line with the first statement. Lists are your best friend when trying to save money. Lists for what food you need, what bills you have to pay, any debts you owe, and how much to add to your savings account. When looking into your bills and normal expenses you might also find ways to cut costs or even switch where you shop. 

3. Ignoring Debts and Not Paying Them on Time

piggy bank half submerged in water: Drowning in debt
lightsource via DepositPhotos.com.

We get it; staring at the letters coming in the mail can be very overwhelming. But debt doesn’t go away, in fact, it can grow to much more than you ever owed, to begin with. If you can’t make the monthly payment you can always call and see if you can have it lowered. Or, if you have the money, see if you can save some by paying it off in full!

4. Relying on Credit Cards Excessively

Photo of cheerful young handsome man wearing plaid shirt over blue background hold debit card look empty space.
Image Credit: Roquillo Tebar/Shutterstock.

Early 2000s Tv really convinced us that multiple credit cards were the way to go. While we love slapping down our platinum card on the department store counter, it really is a bad money habit that puts us into credit card debt. Credit cards require us to pay back more than what we spent, and can get overwhelming when we are maxing out multiple at one time. Not to mention the havoc late payments and overutilization has on your credit score.

5. Spending Beyond One’s Means

Senior woman holding credit card as payment cover mouth with hand shocked with shame for mistake, expression of fear, scared in silence, secret concept.
Image Credit: Krakenimages.com/Shutterstock.

Social media has many of us thinking we need to stay up-to-date on trends and attend multiple events, spending beyond our means. Meaning, becoming used to a lifestyle that we simply don’t make enough to support. Don’t get us wrong, treat yourself to a designer dress, or overpriced macchiato every once in a while, but be truthful to yourself on what you can afford often. 

6. Not Saving for Emergencies

Close-up shot of cute and funny adult with red hair and beard.
Image Credit: Cookie Studio/Shutterstock.

While emergencies don’t happen often (knock on wood) they can cost us a pretty penny. Most Americans can simply not afford unexpected expenses. If you aren’t saving for the worst case then when it happens you will find yourself unable to fix it. If it’s something you simply need, like let’s say a new AC in the summer, then you also might find yourself signing up for a 5-year payment plan. Emergency funds save us money in the long run.

7. Neglecting Retirement Savings

Sad pensive older senior 70s man lost in thoughts looking out window.
Image Credit: fizkes/Shutterstock.

Retirement is a long way off for a lot of us, but that doesn’t mean we shouldn’t worry about it now. The sooner you start saving towards retirement, the more money you will have. Most retirement savings plans rely on compound growth, adding to your savings every year you have your account open before needing to use it. That means that even if you can only add a small amount as a young adult, what really matters is keeping money in there for as long as possible.

8. Frequent Dining Out or Ordering Takeout

A happy girl is snacking on a ready-to-eat salad in a city park. Diet and cheap takeaway fast food on the street.
Image Credit: frantic00/Shutterstock.

This is on every list of bad money habits because it is so true. When it comes to our pocketbooks, we think we’ll stick with homecooked food. Fast food has grown in price over the past few years, and sit-down restaurants require leaving tips. Don’t even get us started on the delivery fee, restaurant fee, plus tip that makes our $30 dollar Uber Eats order double in price.

9. Buying Expensive Coffee or Drinks Regularly

Hispanic young adult woman smiling confidently pointing to own broad smile. take away coffee concept
Image Credit: kues via DepositPhotos.com.

Remember what we said about living outside our means? You might not notice it in the short term but our daily coffees add up to a pretty penny. Don’t worry, we aren’t here to convince you that omitting your pre-work Starbucks will mean you can suddenly buy a house. But a penny saved is a penny saved, and relatively small purchases can add up when done every day. 

10. Not Negotiating for Better Deals or Discounts

A fuming mad man arguing with a customer service representative over the phone. A livid guy making threats.
Image Credit: MDV Edwards/Shutterstock.

Now we’re not recommending you haggle at your local grocery store. However, many places can actually give you a deal if you know how to ask. If you are great at paying back your credit cards you can ask for a lower interest rate. Your internet service provider might be inclined to offer a discount if you mention loyalty but that you found a better deal elsewhere. Big purchases such as cars can be haggled. You’d be surprised how much money you can save by simply asking if there are any specials at the moment.

11. Not Reviewing Bank Statements and Bills

Photo of a positive young couple embracing and calculating the bills at home..
Image Credit: bbernard/Shutterstock.

Our card is something we use and then tend to forget about. We might look at a snapshot of how much we have left but how many of us actually open up and scroll through our purchases? Regularly checking your bank statements might reveal unused subscriptions still taking $15 a month from you. At worse, you might catch a few purchases you didn’t make. Keep an eye to avoid disappearing money.

12. Borrowing Money From Friends or Family Without Repayment Plans

Happy family: cheerful mother and father with kids smiling and putting coins into piggy bank while sitting on sofa at home
Image Credit: Evgeny Atamanenko/Shutterstock.

All of us have been there, and it’s great to have friends and family that can help us out sometimes. This is a money-saving tip and a good personal tip. Make a plan to repay your debt, either in full or in payments. This will keep your relationship on good terms and avoids your friend asking for their money back when you’re in another tight spot.

13. Falling For Get-Rich-Quick Schemes

Excited bearded man in eyeglasses showing dollars on smartphone camera sitting at workplace with laptop,
Image Credit: Khosro/Shutterstock.

The internet is many things, and a pit of fake jobs and pyramid schemes is one of them. A simple way to avoid these kinds of postings is to see if they require YOU to spend money first. No real job will have you pay them for a starter pack or for training. Unfortunately, making money is more about hard work and diligent saving.

14. Using Payday Loans or High-Interest Loans

Payday Loan
Image Credit: garagestock/Shutterstock.

The thought of $2,000 in your pocket with an almost 100% approval rating is enticing, but these types of loans carry insanely high interest. If you take a look at what you have to pay back and for how long, that $2,000 to you could easily mean paying $4,000 to them. If you don’t absolutely need that money, it’s best to just save it up yourself. If you already have one of these loans, see if you can get a deal by paying it off in full early.

15. Not Putting Money in Personal Savings

Picture of excited young african woman posing isolated over yellow background holding money make selfie by camera..
Image Credit: Dean Drobot/Shutterstock.

We won’t ever truly have financial freedom if we never build savings. Most of our bank accounts come with a savings account attached to them and it’s something you should be using. With every paycheck, put some away. If you are the type to forget then you can even set up an automatic transfer so you don’t even need to worry as you move closer and closer to financial freedom. 

16. Avoiding Financial Education and Knowledge-Building

woman holding dollars in glass jar and american flag.
Image Credit: Andrew Angelov/Shutterstock.

The way we spend and save is always changing and there are many types of accounts, loans, and money-building tips. Strive to continue building your financial literacy so you don’t get taken advantage of. Break bad money habits by staying up to date on your spending and on your future goals.  

12 Frugal Hacks That Make All The Difference

Portrait Of A Mature Woman Smiling.
Image Credit: Nadino/Shutterstock.

A Reddit user who started the frugal journey with his wife a couple of years ago wanted to know the frugal hacks people had that made all the difference.

According to the OP, shopping grocery sales every week and planning their meals helped cut their bill from $250 to $100 per week. Other users shared their stories about frugal hacks they had that made some difference in their lives. Here are some of the best ones.

12 Frugal Hacks That Make All The Difference 

12 Items Frugal People Proudly Exclude From Their Shopping List

Old Man in a hat as a cowboy.
Image Credit: Thomas Mucha/Shutterstock.

Frugal people are known to spend their money wisely. They live within their means and don’t spend a lot of money. According to a thread on Quora, here are some common things frugal people never buy.

12 Items Frugal People Proudly Exclude from Their Shopping List

23 Side Hustles You Never Considered That Make More Than Your 9 to 5

woman warrior. woman holding sword
Image Credit: Avrora-Andrey via DepositPhotos.com.

Have you ever wanted to make a lot of money from a side hustle and quit your 9 to 5? You may know about the typical side hustles, but I bet you never even heard of these lucrative side hustles!

23 Side Hustles You Never Considered That Make More Than Your 9 to 5

9 So-Called “Frugal” Habits That Are Actually a Waste of Time and Money

woman laying under knitted blanket
Image Credit: serezniy via DepositPhotos.com.

Not everything is frugal! I am sure you have read articles and tips that promote frugal living and give some ideas that are just not frugal! These frugal myths float around and sometimes even cost people a lot of money!

9 So-Called “Frugal” Habits That Are Actually a Waste of Time and Money

10 Stupid Scams People Won’t Stop Falling For

Doctor in corruption concept with being offered bribe.
Image Credit: Elnur/Shutterstock.

It seems like every day there is a new scam popping up, promising to make you rich or solve all of your problems. Yet, despite the prevalence of scams and the numerous warnings about them, people still fall for them.

10 Stupid Scams People Won’t Stop Falling For

 

 

 

 

Hi! I am a millennial mom with a passion for personal finance. I have always been “into” personal finance but got inspired to start my blog after a period of extended unemployment. That experience really changed the way I viewed my relationship with money and the importance of accessible personal finance education.