How to Break Your Bad Money Habits

Bad money habits can be hard to break, but with a little determination and effort, you can overcome them and improve your financial situation. Bad money habits can take many forms, from overspending and impulse buying to not saving enough money. But, no matter what form they take, bad money habits can have a negative impact on your financial situation. The good news is, with a little effort and the right strategies, you can break free from these habits and take control of your finances.

The first step in breaking bad money habits to know thy enemy. Identify exactly what the bad habits are. Are you a compulsive spender? A chronic impulse buyer? A lazy saver? Once you've got a handle on your bad habits, you can start taking steps to change them. This can be difficult to do on your own, so it may be helpful to seek the advice of a financial professional or to work with a financial coach. They can help you understand where your money is going and how you can make changes to improve your financial situation.

Setting specific, measurable goals is a great way to stay motivated and on track. For example, if you want to save more money, set a goal to save enough to buy a piece of land for instance. Or to have a certain amount of money in savings by a certain date. Setting a goal will give you something to work towards, and it will help you stay motivated as you work to achieve it.

Creating a budget is a great tool to help you take control of your finances. By creating a budget, you'll be able to see where your money is going and make adjustments as necessary. Make sure to include all of your income and expenses, and be realistic about how much money you can save each month. A budget will help you understand where your money is going, and it will give you a roadmap for how you can improve your financial situation.

Going on a cash diet can help you avoid impulse buying and overspending. By cash diet, I mean you commit to using ONLY cash – no credit cards or mobile money. When you use cash, you'll be more aware of how much money you're spending, and you'll be less likely to overspend. Plus, it's way more satisfying to see a wad of cash shrink in your wallet than a number on your phone. This will definitely be difficult at first, but it can be a great way to curb your spending and help you take control of your finances.

Automating your savings is a great way to make sure you're saving money each month. You can set up automatic transfers from your current account to your savings account and investments accounts. This will remove the sting of having to set money aside every month for saving and investing. Automating your savings is a great way to make sure you're saving money each month, and it will help you reach your financial goals more quickly.

Having an accountability partner can help you stay on track with your financial goals. You can share your goals with them, and check in with them on a regular basis to see how you're progressing. Plus, it's always more fun to achieve your goals with a friend by your side. An accountability partner will help keep you motivated and on track, and they can offer support when you need it. If you are shy about sharing your financial position with someone you know intimately, a finance coach can assist you with this.

Breaking bad money habits is not easy, but with a bit of determination and consistency, you can improve your financial situation and take control of your finances. Remember to be patient with yourself and to keep working towards your goals. It's important to be kind to yourself, and to remember that everyone makes mistakes. If you slip up, don't beat yourself up, just pick yourself up and keep going.

If you’d like to talk to a financial coach about overcoming your bad money habits, you can book a free 30-minute ZOOM call with me HERE.

I am ready to help you kick those habits this year!