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What are some bad financial habits one should get rid of and why?

Submitted by Vikas on Thu, 03/01/2012 - 00:38
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What are some bad financial habits one should rid of? Explain why you think one needs to kick out those habits.


It's a horrible habit to take money out of ATM's that charge a fee. I have found that you get in to a situation where you need money quickly, and you're willing to accept the fee. $2 or $3, here and there quickly adds up to a car payment in a years time. I have found that preplanning and knowing where the No Fee ATM's are located is a good way to kick this habit !


Submitted by stephanie.coffey on Thu, 03/01/2012 - 05:36

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Eating out or going to a bar numerous times a week. The average dinner at Chilli's or Applebees is $30 for a couple. If you add drinks, it gets to over $50. For bars, a Saturday night tab could be between $70 and $90 plus tip.

If you go out to eat 2 times a week and then out drinking one night on the weekend, chances are you spend over $600 a month on those 3 weekly events. Cutting it down to eating out once a week and going out drinking twice a month would save you over $400.

Some other options are having people over to your house for drinking and board games/movies, going to other house parties, having a picnic or even buying pre-made meals at the grocery store.


Submitted by arlier on Thu, 03/01/2012 - 09:11

arlier

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Well, there are the obvious ones, like going out too much, impulse shopping, taking out payday loans, and buying things you don't need. But, the one habit that I eliminated that helped me on my way back to financial freedom was spending money that I didn't have yet.

Often, I would spend part of my savings or my rent money, knowing that I'd get paid in a few days and I could pay myself back. This meant I was always in debt to myself and eventually borrowed too much from my future self to sustain my present self, and found that I was broke.

The lesson was to never spend money you don't already have. Even credit cards scare me now. I'm a cash/debit kind of person these days and it's made a big difference.


Submitted by zacharyeckstein on Thu, 03/01/2012 - 10:31

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The worst habit is spending what you do not have. Credit and payday loans are so easy to get and so hard to get rid of. You need to save for what you want to buy if at all possible. Once you get into the borrowing habit your paycheck is no longer your own. I have had that problem in the past and I am working hard to get out of the rut.


Submitted by kstedman on Thu, 03/01/2012 - 10:41

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Going out to eat too often - bad for the waist & for the wallet. Plus, makes it more special when done less. Bring your lunch to work, as saves money & now it makes a difference as also saving gas money too! Or, just buy the food and get your drink from the vending machine or from your stash at works as instead of paying $1.95-$3.00 for the drink you only pay 50 to 75 cents.


Submitted by mirojobmw on Fri, 03/02/2012 - 16:54

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neglecting to check the credibility of any product you buy on the internet, whether a payday loan or getting that miricle diet pill, that will just melt off all that unwanted weight, I now look to the BBB and Consumer Complaints , and my states attorney general website to view all the valuable information, I must add this site "DebtCC" as it has information that will save alot of hardache and teach us a better way of protecting what we have.


Submitted by kitty15650 on Sat, 03/03/2012 - 15:29

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procrastination of payment of bills on time. This leads into deeper debts. Borrowing money for no reason to spend when there is no need. Buying things that you do not need in order to keep up with others. Lack of budgeting and planning. If you do not priorities your responsibilities you will always incur more debts


Submitted by Graham Odenyo on Sun, 03/04/2012 - 14:41

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Ignoring your debt is one of the worst financial habits one could have. There is tremendous anxiety in realizing your debt is accruing at a rate that is becoming overwhelming, but ignoring your financial situation will only continue to make it worse overall. At this point, it is time to pick up the debt ball and chain and resolve the situation, instead of letting it continue to drag you around.


Submitted by amd115 on Sun, 03/04/2012 - 15:04

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1) stocking up on stuff because its on sale - You buy much more than you need or can use because its cheap and end up spending alot:

2) compulsive shopping to feel better - don't think well about what is being purchased and whether it will be used or collecting dust;

3) buying clothing/shoes without trying on in hopes to try at home and return later - often you miss the return deadline and stuck with unwanted merchandise; some stores also have limitations on amount of returns per year for each customer;

4) shopping at thrift stores - stuff seems to be so cheap that you buy a lot of all kinds of stuff, often not trying on and thinking what to do with them later;

End up spending good money and barely use most of purchased things, and have way too much stuff to fit in your space and often if you have too much stuff you don' remember what you already have and end up buying more of the same things.

The list can go on and on


Submitted by fr2306w on Tue, 03/06/2012 - 16:30

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I think a really good financial habit to get out of is buying things you dont absolutely need for instance some of us feel the need to buy the best of the best brands weather its hair products, make up, laundry detergent ect.....but what we really need realize is that buying the cheaper brand will work just as good and its not the end of the world if you buy the 4 dollar mascara instead of the 10 dollar one! They work the same and no ones going to notice that you used the cheaper brand!!!!


Submitted by shamayzobell on Wed, 03/07/2012 - 10:42

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One bad financial habit one should get rid of is living on credit -- period.

When you buy things on credit, you spend more. The credit cards know this, the stores know this. We ourselves, do not realize this. We feel because the cash is not coming out of our pockets physically that it doesn't "hurt" that bad.

When it does hurt is when you have to pay it back and you get the bill, plus interest and late fees. That 20 dollar scarf is now more like 50.

So the best thing to do is live on cash. Then you know where you always stand.


Submitted by chrissyhen1 on Thu, 03/08/2012 - 09:59

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There are many bad financial habits. Too often in our current culture, we live in excess and we want our things NOW. This leads to poor decisions or impulse buys that generally lead to excessive debt which can be uncontrollable. Another bad habit is living without a budget and "winging it" I'm regard to your finances. If you don't plan on how to spend your money, and don't know what you're spending your money on, you will usually end up never having enough money, and wondering where it went. If you really want to gain control of your financial future, you must kick these bad habits and replace them with habits of budgeting and being patient with your purchasing decisions.


Submitted by Jasonburt.esco on Thu, 03/08/2012 - 22:09

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I think the two biggest financial mistakes people make are 1) not having a budget and 2) not keeping track of their spending.

Not having a budget is like trying to find lost treasure without the map! You cannot reach your financial goals without a plan and the budget is that plan. If you don???t have a budget, you need to sit down with all your bills, bank statements, 401(k), IRA, etc. and make one. Set financial goals for yourself. Figure out how much you want to put into your future savings, how much you should be spending on a monthly basis and how much you should have on hand for emergencies. If you have debt, set up a strategy to pay it off. Make the budget and stick to it!

The way to stick to your budget is to keep track of your spending. People are always amazed when they find out that their pack of cigarettes or 2 cups of Starbuck???s per day habit is costing them around $2000 annually. All of those little things add up. Keep track of them and, if you can, eliminate them. :)

Just implementing these two things will have you first taking a good look at your finances and then repairing past mistakes and preparing for a stable financial future.


Submitted by OhioGal1 on Fri, 03/09/2012 - 08:30

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Gambling, casinos, addictions and all other similar habits... or spending money on useless stuff you're not going to use... or purchasing anything that looks good (but you don't actually need it).

Reason why you need to remove these habits is obvious, you waste money one of your most precious resources!


Submitted by karlsult on Sat, 03/10/2012 - 11:05

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Easting at fast food resturants and coffee shops on a regular basis. Alot of money goes out the door that could have been put in a savings account. It cost $10 to $20 just to go to jack in the box, Mc Donalds Starbuck etc. Buy groceries more often. You get more for your money. Pack a lunch instead of eating out.


Submitted by loco on Sun, 03/11/2012 - 17:58

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1) Being disorganized -: Disorganization costs money. Lots of money. Money spent on late fees, interest charges, memberships with groups you no longer associate, subscriptions to journals you no longer read, customer invoices that go unpaid, and warranties that never get filed.

2) Doing your own taxes -:Unless you are an accountant, it's good business practice to hire one to make sure your taxes are done properly. It isn't that the system is so complicated you could never handle it. It's more that your time is better spent doing what you already know how to do.

3) Undervaluing your products or services -: I recently purchased some handmade baby care items from a friend who is much more craftily inclined than I am. Every piece is high quality, hand-sewn, and detailed.

And the amount she charged me? Ridiculously low.I'm no expert in handmade baby gear, but I know a good thing when I see one, and I'm willing to pay a decent amount of money for it. So are your customers, unless you tell them they don't have to. If your products and services are meeting a demand, allow your prices to rise to that demand. Value what you produce as much as your customers do.

4) Letting small leaks sink your big ship -: Overdraft fees, late fees, and the like, can suck your bank account dry and can mar your financial reputation with potential lenders and investors. It's money spent on nothing but your own disorganization. Don't do that.

5) Failing to negotiate -: Say you do some research on Internet providers and discover that there's a great deal from another source. Don't call your current provider to cancel; call to negotiate.

In order to keep your business, your provider might quickly match the competitor's offer, and you're saved both the hassle of switching and the extra money you were paying.

Don't be afraid to negotiate. It's not bad manners to negotiate; it's good business.


Submitted by usavsdebt1 on Tue, 03/13/2012 - 05:37

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Opening new credit cards that have a low or zero percent interest rate with the intention of transferring higher interest credit cards to the new account. Unfortunately I did this FOUR times! If you already have the habit of abusing a credit card, transferring the amount to a new card will only get you in deeper. You then have the first credit card with a zero balance and that is just too tempting when tempted to overspend. You should either #1 try to negotiate with your credit card company to lower your interest rate by telling them you are going to transfer your balance to another company with a lower rate or #2 the minute you transfer the balance to the new lower rate card, close account #1 immediately. (of course you will say you are going to close the account and then rethink it because you just MIGHT need it). So the best option is ask for the lower rate on card one. Unfortunately I think most of the people who are in exceptionally high unsecured debt balances are the ones who had excellent credit and were sent dozens of offers on low balance cards which they used all too freely and then got in over their heads. My husband and I ended up with $70,000 in credit card debt and with a $220,000 mortgage - this amount should have never even been offered to us when factoring our income/debt ratio.


Submitted by bucksbargainbarn on Wed, 03/14/2012 - 07:51

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Don't buy it unless you absolutely need it. This stops impulsive buying and puts more in your pocket for later.

Stop buying everything when you fill up your car. Gas stations are expensive.

When looking to rent or own housing never pay over 1/4 of net earnings on mortgage or rent. Because you will always be broke.

If you can borrow it and save your self money, do it. Always return Items in great and clean conditions.

Look for quality and durability over cheap. Make sure what you buy lasts forever.


Submitted by jim4781205 on Thu, 03/15/2012 - 12:36

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Trying to be involved with too much businesses, or things that debit your checking account on a monthly basis. If one gets sick or can't work for whatever reason, your debits will still come out unless you cancel your debit card and get rid of things one doesn't really need to survive in this crazy world we live in with our smart phones and our computers which are now almost a necessity for most of us.


Submitted by merryannlyerly on Thu, 03/15/2012 - 15:23

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I had two credit cards and they both have the same bank.I bought two items whith on intrest. I had so many months to pay it off. Then I made payments of 50.00 only 10.00 would towards the item with on intrest. They like to make the comsumer loose the intrest. .So they tack on that intrest back on the payments and your paying more. I had to get a cash advance to pay off the other card because they were going to add that back on to the intrest.I was told only part of your payments gose towards the non intert item.
I called them told them I want my whole payment go towards the non intrest item so I want lose the non intrest on my credit card. That's how they get you.


Submitted by dianmm1963 on Fri, 03/16/2012 - 08:45

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I think what help me with with my bad financial habit, which was over writing checks, which the bank love. I bought a budget book and start writing down what I spend,check bank statements weekly. I eat before shopping so you will not buy things that you do not need and I ask myself when I'm about to buy something that I really do not need. I say to my self "do you really need this"?It give you a chance to think before you spend, also leave the credit cards in the fridg on ice. Make a list of your needs and limit your wants because you will always have bad financial habits. I'm a senior citizen on a fixed income and was over fifteen thousand dollars in debt about to loose my house.I got my budget book and went to work, cutting out wants and cut back on some needs and to day I paid them all off , I just have a condo note and It feel great.


Submitted by kennycornelia25 on Mon, 03/19/2012 - 22:14

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One simple bad habit is rounding out figures for calculating money.wether it's tallying up purchases , calculating a project,or trying to do a budget. We have all heard the phrase ,"guesstimate"
it's a general lacksidasical additude about math. I think we would all do well to be more precise when it comes to money and math.
Just like the banks that charge you, we should get into a habit of realizing every detail of our money.


Submitted by drepark78 on Thu, 03/22/2012 - 12:41

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