When was the last time you reviewed your expenses?

If you don’t keep track of your spending, it’s easy to fall into unhealthy spending habits. And if left unchecked, these habits might have adverse knock-on effects, such as debt. In the busy modern world, taking time to comb through receipts isn’t everyone’s priority — and there’s no shame in forgetting to do this!

However, many of us have unhealthy habits without even realising it. Today we’re drawing attention to the most common negative money habits to help you check whether your personal finances could be healthier. Here are the top money habits to avoid and a few positive alternatives.

5 Signs of Unhealthy Money Habits

Don’t worry if you recognise some of these money habits. The quickest way to start saving is by identifying bad habits and making a change.

1. You Buy Things To Impress Others

Also known as “Keeping up with the Joneses,” buying things to impress others is a sure way to spend too much money on things you don’t need.

For example, this could look like spending beyond your means to attain the latest style or gadgets to impress your friends — even if you don’t really care about the products.

Instead of spending more on status-symbol purchases, consider whether you truly want the item. Oftentimes, you don’t! Cutting back on these purchases can save you a lot of money in the long term.

2. You Have No Financial Goals

When it comes to personal finance, do you have any goals you are working towards?

Goals help to curb aimless spending and help you secure a fruitful financial future. Without specific goals, many end up making extra purchases because the money isn’t directed towards an objective.

Common financial goals include:

  • Pensions
  • House deposits
  • Holiday savings
  • Emergency funds

Consider adding a meaningful goal to your finances. You might realise you’re frittering hard-earned money away without meaning to.

3. Impulse Shopping

You can’t do anything without being exposed to adverts these days. While this does increase our exposure to incredible innovations, it also puts us at risk of overspending on things we don’t need without a second thought.

If you impulse shop (or panic buy), start adding products you want to a list or Word document. Then, revisit them after 72 hours. This gives your brain enough time to process the desire, and often shoppers realise that they don’t desperately want the product.

You should also consider unsubscribing to marketing emails and influencers that trigger impulse shopping behaviours. It’ll help you save and reduce the clutter at home!

4. You Don’t Have A Budget

We love budgets.

Not only do they ensure your money is evenly distributed and covers your basic needs, but they help you prepare for the future and unexpected costs.

Not having a budget can leave you at risk of overspending, not saving for the future and having general disorganised finances. Don’t put it off any longer. Learn more about living on a budget here.

5. You Are Ignoring Your Debts

Finally, a concrete sign your money habits need some work is if you are ignoring your debts. Digging your head in the sand might seem easier, but your debts will cause problems in the future if left unpaid.

Paying off debt takes some planning and we are here to help. Read our complete guide to paying off debts and achieving financial freedom today.

Creating Financial Wellness: The Takeaway

Habits take time to break, but we all have to start somewhere. Hopefully, this spending guide has inspired you to make healthy changes. It’s never too late to start!

Want more expert advice? Cash ASAP is on hand with the latest personal finance topics. Read more on our blog here.