Four Toxic Habits Keeping You Broke - Break Them and Break Free From Financial Woes

Your paycheck hits the account, and a week later, it's all gone. You're wondering: “How is it possible that I earn well, but hardly anything is left?” Well, let us explain – you might be doing a few things that aren't great for your finances (not to mention saving). We'll go through some bad habits and give you tips on how to kick them.

@doujiang.youtiao

last week i spent $400 on dog treats

♬ original sound - cherry 🎀

1. Impulse Spending

Let's start with a habit that's hard to resist sometimes. When you have money in your account, you tell yourself it's okay to “treat yourself”. E-shops are full of sales, your favorite pistachio croissant for 4 euros always makes your day better, and there's a new aesthetic matcha spot at work = perfect factors for impulse spending.

Psychologists say that impulsive spending is often more about emotions than logic. Common psychological triggers include massive discounts, trends, limited-time offers, attractive packaging, rarity, or novelty. Sometimes, this kind of shopping is a coping mechanism for emotions, stress, or boredom – in that case, it's a deeper issue.

We're not saying you can't indulge. But frequent, long-term “treating” can have a big impact on your finances, which could be larger or used in better ways by the month's end.

@savingmoneybish Finding the root cause of your impulse spending is so underrated 💸 I had a shopping addiction because I was v depressed and thought that all my self-declared flaws needed to be fixed asap #overconsumption #impulsespending #shoppingaddiction ♬ original sound - Demi

💶 TIP: Think About It – Do You Really Need It?

Every time you're about to buy something, consider if you really need it. Give yourself a time gap, and if you don't think about the product for long, it might just be another unnecessary impulsive purchase.

Also, look at how many things you already have at home. You really don't need another cute mug because you've got “a million” of them at home. That trendy lip gloss from a celebrity might be cool, but you've got half of your current gloss left that does the same thing. And why order a heap of low-quality clothes you know you won't wear?

Not to mention, with fast-changing trends, shops are always packed with items that end up in second-hand or resale stores sooner or later – or worse, in the trash. That doesn't help our planet either.

Use as much as you can from what you already have and learn how to care for things, whether it's gadgets, clothes, cosmetics, furniture, etc.

@the_real_jnl Shop responsibly y’all #underconsumptioncore #underconsumption #overconsupmtion #landfillcore #consumer #minimalist #minimalism ♬ duvet - henri

💶 TIP: Try a Challenge

You can try a small experiment. Go at least a week without any unnecessary spending (apart from essentials). Skip the coffees, snacks, taxis, etc. Just try not to spend anything for a bit and see how much you save. Who knows, it might even change your shopping mindset. You can get inspired on TikTok.

2. No Financial Overview

How do you know how much money you'll have left when you don't even have a basic overview of your expenses? Daily purchases can quickly stack up, and you might have no clue how much is going out and where – leading you to spend more than you have.

💶 TIP: Tidy Up Your Finances

Open a notebook or Excel. Every time you get paid, note down all the essential expenses coming up: like rent, bills, food budget, etc. From what's left, put some into savings, and the rest is yours.

To easily track your finances, you can use Excel sheets, AI chatbots, or Csob SmartBanking's eReceipts to store paper receipts in one place.

@youarelovedtemplates Budget in a cute way ✨ #budget #spreadsheet #spreadsheets #googlesheets #monthlybudget #monthlybudgetplanner #budgeting #budgetspreadsheet ♬ original sound - Laura Flick

3. Not Saving Money

If you're earning, having savings and a savings account is fundamental. Relying on a pension isn't enough for many, so taking control of it yourself is wise. It's not just for the future but also for sudden life situations that require financial outlay.

💶 TIP: Save What You Can

There’s no universal rule for how much you should be saving. Don’t follow people who say they save 200 euros a month. Look at your own expenses and figure out what you can regularly set aside – whether it’s 5, 50, or 150 euros.

You can also try the 50-30-20 rule, which consists of three categories of spending:

• 50: Half of your income should go to your necessary expenses. This includes things like housing, utilities, medications, basic groceries, and bills.
• 30: This part is for your lifestyle: gym, dinners, trips, outings with friends, clothing shopping, etc.
• 20: The remaining fifth of your income should be saved for the future, ideally in a savings account. In times of high inflation, it’s good to protect your finances, for example, through investing, which can yield positive returns in the long run (note: investing carries risks). 

4. Shopping for Food Without Planning

Nowadays, you can secure breakfast, lunch, and dinner with a few clicks or a quick trip to a restaurant. It's fast, and you don't have to deal with annoying dishes – we totally get it. But if you do it regularly, you're spending way more on your hunger than necessary.

Sure, groceries have gotten more expensive, but a traditional shopping trip will still cost you less than regular delivery or eating out.

💶 TIP: Shop Smart

Simply put, knowing how to shop will save you loads of money. Stay on top of sales, sign up for loyalty cards, take advantage of discounts, and don't shy away from foods near their expiration date.

Focus on foods you can use to make various meals, like potatoes, rice, pasta, beans, oats, whole chicken, and seasonal veggies and fruits. Skip the sugary drinks, snacks, pre-sliced fruits, or convenience foods. It'll help not just your wallet but your health too.

💶 TIP: Meal Prep

Meal prepping is an awesome way to ensure you have food ready for days. By having everything conveniently prepared, you’ll cut down on eating out and ordering in – easing your bank account.

Customize meal prep to your needs, but you can find lots of inspiration on TikTok. Check out the video below:

@miroslavaarea keeping it simple, balanced & high protein this week 🍴🤍 → breakfast: overnight oats with protein powder ~ 38g protein → lunch: burger bowl ~ 36g protein → dinner: chicken & shrimp pesto pasta ~ 42g protein #mealprepideas #weeklymenu #healthyfoodinspo #highproteinmeals ♬ This Will Be - audios4you