Last Updated on by Bree
Making tiny cuts in our habits can make a lot of difference in our finances.
And this blog post will discuss tiny money habits that keep you broke.
And what you can do to reduce your spending.
Let’s dive in.
7 Habits Keeping You Broke
One of the things keeping you broke is subscribing to every service that catches your attention.
TV subscriptions, apps you hardly use, meal kits, makeup subscriptions, gym memberships, etc.
Though they seem convenient, the monthly charges add up fast.
I used to subscribe to Birchbox and Ipsy makeup subscriptions.
Though I got some lovely skincare and makeup products, I didn’t like some things in the box.
And every month, the money keeps leaving my account.
The most annoying part is when you think you have a certain amount, and an automated payment reduces your balance.
So what can you do?
Get the free trial.
And set a reminder to end the subscription three days before it expires.
Don’t wait till the last day to cancel.
As you won’t know if the subscription renews at midnight or mid day.
Also, check all your subscriptions and cancel the ones you don’t use.
You can always reactivate the subscription if you change your mind.
Another smart choice is to share subscriptions with friends or family.
2. Retail therapy
Don’t worry; you’re not the only one guilty of retail therapy.
I’ve been there too.
When bored or unhappy, I’ll open my phone and start window-shopping.
And before I know it, I’m ordering stuff.
And that money leaves an even bigger hole in your account.
Of which the high of getting that new stuff has expired.
So you’re only filled with guilt and debt.
What can you do then?
Challenge the urge!
Before buying, ask yourself: “Do I need this or just want it?”
Can you wait and save for it?
Could you borrow or find a cheaper alternative?
Talking about cheaper alternatives.
Instead of buying a brand-new designer bag or coat, why not find a secondhand alternative?
There are many great things secondhand, and you’ll get them at a fraction of the retail price.
And if secondhand shopping isn’t your thing, places like Burlington and TJ Maxx are also great for budget-friendly options.
3. Eating out and your morning coffee
Another thing that eats into your budget is eating out and buying that special oat milk latte.
It might seem like a harmless buy, but eating out daily adds up over a year.
So what can you do?
Start making your lunch.
Buy a coffee maker to brew your coffee at home.
I still pack my own lunch when I go for my weekend gig.
My husband also takes lunch to work.
It’s not always convenient to cook all the time.
But the good thing is that cooking your food can significantly reduce your spending.
And you can make eating out a treat you give yourself occasionally.
4. The impulse buys
Impulsive spending is another habit that can keep you broke.
You know that new bag or gadget that caught your eye, and you thought you must have it.
But since you bought it, you haven’t even used it?
Yes, that’s what happens with impulsive buys.
They often end up collecting dust on our shelves or closets.
I have bought several things impulsively, too.
Imagine I was pregnant with my second child and impulsively bought a gorgeous pair of pumps.
You can bet that I never wore those shoes all through and even after pregnancy.
I threw them away as they started peeling from being stored forever.
So, what’s the solution to impulse buys?
I ask myself if I need that item, not just want it.
And I sleep over it, too.
Then, I also consider where the money will come from for that purchase.
After a couple of days, the excitement to get that thing eventually wears out.
And I end up not buying it.
Implement a waiting period or ask yourself if you’d still love that item in a week or a month.
Or if you see yourself using that thing anytime soon.
Sometimes, we think we’ll use something, but the opportunity to use it might never come.
5. Competiting with friends or family
Another dangerous habit that keeps us broke is comparing our finances with others.
Maybe our friends earn more and buy expensive stuff.
And to keep up with them, we spend money we didn’t plan for on things we don’t need.
What you can do
Instead of trying to catch up with our friends or family’s spending, why not focus on ourselves?
Focus on your journey!
Celebrate your wins no matter how big or small.
Track your progress, and set reasonable goals within your means.
Remember that financial wellness isn’t a competition.
It’s a journey.
6. Your friends can also encourage habits that keep you broke
Talking about competition, the kind of friends we keep can also keep us broke.
Sometimes, your friends encourage you directly or indirectly to spend foolishly.
You know when your friends only want to eat out at expensive restaurants?
Or they only like you when you buy expensive clothes and bags like they do.
That kind of friendship keeps you broke.
So what can you do?
Cut off people that can’t accept you for who you are.
Make genuine friendships based on real connections.
Not people that only like you when you’re keeping up a facade.
You’ll be shocked how your finances will improve once you cuff off fake friendships.
7. Your kids
If you have kids, sometimes you buy things to make them happy at the moment (instant gratification).
But if those purchases aren’t controlled, we can stay broke for a long time.
So what can you do?
Sometimes, when my kids ask for a toy they saw in a TV ad, I say, “No, we’re not getting it.”
They need to get used to hearing no, sometimes.
Also, they can only pick clothes when we go to the clothes store.
Because that’s why we’re there.
And if they want a toy so bad, we keep it in mind for their next birthday or as a Christmas present.
It doesn’t mean you won’t buy something for them once in a while.
But it would be best to control the urge to buy everything your child sees on TV or picks from the store.
Tantrums might be in your future. Lol.
But you got this!
Conclusion on money habits that keep you broke
Breaking habits that keep us broke isn’t easy.
But the payoff is enormous.
So, embrace mindful spending and ditch the habits that encourage staying broke.
And you’ll see an improvement in your finances.
What are your tips for achieving financial freedom?
Please share them in the comments.
Thanks for reading.