These Bad Money Habits May Make You Broke

(MoneyHippo.com) – Thinking of bad habits might conjure images of eating fattening cakes, smoking harmful cigarettes, or biting fingernails. Yet, bad money habits are every bit as detrimental and could devastate anyone’s finances unless they turn those behaviors around.

Racking up credit card debt is one of the single most harmful habits people develop because people spend more than they earn, and they pay much more for every purchase they make. Plus, high debt will lower their credit score and make it harder to stick to a budget, making it difficult to get ahead.

Another bad financial habit is spending every bit of income without saving for emergencies or retirement. Because you know both of these circumstances will occur, why not plan for them now? Neglecting an emergency fund could have you reaching for credit cards when an unexpected expense arrives, and being without a retirement fund could leave you penniless in your golden years.

Formulating and sticking to a budget instead of spending money without tracking it can help you see where all your income goes. You can adjust your spending according to your goals. Without a budget or any way to track your spending, it becomes extremely difficult to break any bad money habits or begin to grow your wealth.