The Money Place presents you: costly habits you need to quit right now!

We all have different hobbies and habits. They make us who we are, and they also help us move forward and work hard to get all those things we might want. But what if some of these are costly habits that are actually sabotaging your savings?

I was there; trust me. I remember that when I was in my 20s and I got my first real job in a marketing company, I was so proud of myself and the money I was making that I would pay the rent and bills, and then I would head to the mall.

It’s safe to say that one of my costly habits was buying shoes and clothes and then ending up being broke for the rest of the month. At the end of the month, I was looking at my bank account and had no idea where my money went, but it was in my wardrobe, waiting for me to wear it.

I soon realized that those costly habits sabotaged my life in the city because I couldn’t enjoy my stay there, and I knew I had to make some changes in my finance department.

So if you look at your bank account and can’t remember what you spend your hard-earned money on, it might be time to take a look at your costly habits and change a couple of things.

Whether you know how to deal with money or you need some help, I think you won’t mind cutting down on some unnecessary costs that keep you from reaching your financial goals.

With that being said, in today’s article, we’ll talk about all these costly habits you might have and why it is better to quit them ASAP. Click on the next page, and let’s begin!

1. Unused subscription services

How many subscription services do you have? And how often do you use them? Just think about it: did you get a new TV streaming subscription last year so you could watch a show, but the moment the show was over, you forgot about the subscription? Or maybe you kept it because it was only a few dollars each month, and who knows when another great show will be streamed there?

What about the apps you paid for on your smartphone or membership communities? These might not seem like much, but they’re costly habits that take dollars and dollars out of your pocket each month, and they keep adding up.

Just look at the recurring subscriptions on your bank statement from the previous month and analyze the situation. If you notice any subscriptions you haven’t used in the past 30 to 60 days, it’s time to kiss them goodbye. If you still want them, consider downgrading them.

These companies frequently attract you with their low-cost subscriptions, making it easy to sign up for something that costs “only $10 per month.” Those $10 will be $120 at the end of the year, and that’s just one subscription. So, what do you plan on doing?

2. Shopping as a hobby

Shopping can be therapeutic, and I truly believe it. There’s a fantastic rush of excitement and happiness when you find the item you were looking for, such as a new incredible gadget or a fantastic pair of shoes.

But as you can see from the story I shared with you at the beginning of this article, shopping can easily become one of the costly habits that you need to stop when it’s getting out of control.

Instead of allowing it to get out of hand, you can shop smart and still get the things you want. If you’re like me and you feel tempted to open the emails you receive from your favorite stores, telling you about new collections and sales, unsubscribe! If you don’t desperately need a new product, then don’t worry; another sale will come before you even realize it.

However, maybe you’re bored and you think you’ll feel better if you do a little bit of shopping. But why not get the same dopamine rush but still have money in your pocket with the help of a walk in the bark? You get some exercise in, you burn calories, and you’ll be happy and glowing all day long.

Other than done, if you tell yourself that you’re not going to shop anything but you still look at websites or go to stores, please don’t! You’ll be more frustrated and sad after, and you’ll spend money without actually needing that item.

3. Not keeping tabs on those bills

So many of us simply pay our bills each month without giving them much attention. I used to do that too, but when I realized that my bills were creeping up without any explanation, I knew I needed to go through all of them.

You should always know what you pay for, how much the taxes are, the additional fees, and many other things. Plenty of companies give their customers contracts that expire in a couple of years or have a model where the amount you pay keeps growing year by year.

They know that the majority of people will gladly pay them without spending any extra minutes analyzing them, so if you do that, this is one of the costly habits you need to quit right now.

The great news about this is that if you don’t like the amount of money you have to pay each month, you might be able to negotiate lower bills. You can ask them for a rate reduction, or you could simply switch providers on any of the bills so you can save more and spend less.

If you want to start saving money and quitting these costly habits, you can start off with a tiny piggy bank! Here’s a cute one from Amazon! It also serves as a decor item, so win-win!

4. Smoking

If you’re a smoker, you already know that this is one of the most costly habits you could have. It is not only bad for your wallet but also for your health, considering that you have higher risks of diabetes, heart disease, cancer, stroke, chronic obstructive pulmonary disease (COPD), and lung diseases.

If these dangerous side effects didn’t convince you to stop, maybe the cost of a pack of cigarettes will, especially since an average one is around $10. Whether you only smoke on particular occasions or constantly, money spent on this unhealthy habit is literally money going up in smoke.

I strongly advise you to quit these costly habits right now, especially this one, because the money you spend on cigarettes will soon be the money you need to have for your doctor’s bills.

5. No budget

Even if things are going well and you don’t need to account for every dollar, a budget can help you keep track of your costly habits. One of the worst mistakes people make when they start their money-saving journey is overestimating how much they can set aside for other things.

Saving more than half of your monthly income is not realistic for the majority of us, but this split is: 50% of your income goes on housing, a retirement plan, and bills, 30% goes on things you want to get, such as holidays, concerts, movies, and shows, and the rest of your 20% goes on your savings account.

Knowing exactly how much money you need for different things is going to help you have a clear idea of how much you have available, so you won’t be tempted to lose yourself in these costly habits.

6. Credit card interest

We’re almost done with these costly habits many people have, but we still have a couple of things to talk about, so don’t go anywhere just yet. Speaking of mistakes, it’s no secret that using credit cards carelessly can lead to serious financial difficulties that you’ll regret later.

Many people are aware of these cons but behave like they don’t care that much. If you’re one of the people who have a credit card, you must pay off your balance each month.

However, if you can’t do that because of a larger balance, you should come up with a plan to pay off your balance each month. Credit card interest can easily become a major issue, so be careful with that.

Whether you plan on paying your bill off sooner or opt for a credit card with a zero-interest promotional period, it can have an effect on your financial status once the interest starts to add up.

One way to keep these costly habits to a minimum is to avoid obtaining high-interest credit cards, such as retail cards, and concentrate on paying off the accounts with the highest interest rates first.

You can also spend as much of your income as you can on paying off balances, and whenever you have the chance, try to pay more than the minimum so you get rid of it faster.

What do you think about these costly habits? Are you guilty of any of them? Leave a comment down below and let us know! If you found this article useful and you want to read more from The Money Place, here’s a fantastic post for you: 11 Ways To Earn An Extra $1k A Month