When I received my offer letter for my first job I made a list of all the things I wanted to purchase with my first salary. I was too excited to make my own money, so I went shopping the day after I received the paycheck. 

Despite my plans to purchase a lot of items, I couldn’t bring myself to part with my hard-earned money on that day.

It was that day that I realized I had limited money. I couldn’t afford to buy everything I wanted.

Saving it was the best thing I could do. I felt much happier buying only what I actually needed.

Since I began managing my money, many things have changed. I now know that it is not easy to make money. It’s not easy to stop bad money habits though.

While you might be willing to adjust your budget in order to buy that handbag at the boutique, you will soon regret it. To manage your finances effectively, you need a solid strategy.

The first step is to get rid of bad money habits that have been draining your savings.

It’s not too late to make a change if you are worried about your inability to save money due to poor money habits.

Here are some bad money habits you can change, provided you have a steady source of income and a desire to save as much as possible.

1. Impulse buying 

Up until recently, I was a victim of emotional buying. Although my intuition was strong against impulsive, unplanned purchases, I still succumbed to my emotions.

When I felt the need to save money, I started to realize how I was spending my money on impulse shopping. Since then, things have improved tremendously.

I now make it a habit to ask myself some questions before I buy anything on impulse.

• Am I really going to use the product?
• Can I afford to purchase this product?
• What is the expected shelf life of this product?
• Is there a cheaper alternative to this product?

Sometimes I even go to sleep before making a purchase to gain perspective and help me make a decision.

Although emotional buying may not seem like an issue at first, it can quickly become a costly money problem if it isn’t recognized as such.

It can really save you a lot of money if you plan ahead and consider what you want before you buy anything.

2. Credit Card Dependence

If your credit card is something you rely on too heavily to perform your daily transactions, you may want to reconsider using it.

Credit cards have a way of making it easy to spend money. Remember, you don’t own any of this money. Besides, they end up being too expensive in the long run.

Talk about those high-interest rates.

The simplicity of a credit card can also be dangerous for your financial health because you can buy any item simply with a swipe of the card, without having to give up cash.

It’s always much harder to give away physical cash. It sounds weird but it’s true for a lot of people.

You will notice a change in your spending habits if you adopt a cash-only lifestyle You can only carry so much cash in your wallet.

This forces you to keep it for the things you really need.

3. Outrageous Housing Costs

Sometimes you don’t realize the amount of extra cash you have spent on housing, such as insurance, repairs, rent or maintenance, and even utilities.

You can make an informed decision about where you want to live and how much you are willing to pay.

This will give you a clear picture of the total spending for the house you plan to live in. With this prior information, you’ll be able to budget appropriately.

4. Keep up with the Joneses

It’s great to learn good money habits from others, but it’s often those very same surroundings that cause you to want to live a lifestyle you cannot afford.

You can live within your means and save money if you think about how your friends and family influence your spending habits.

You can make some saving-influenced changes to your lifestyle as well as spend more time with people who can manage money in the best way possible.

Conclusion

If you have the right intentions, quitting bad money habits will not be so difficult. It’s fine to cheat sometimes, but it’s also okay to indulge in the things you love.

However, it’s important not to make it a routine. You can be as happy with a cheap product as you can be with the savings that will protect your future.