11 Bad Money Habits to Stop Now & How You Can Change Them

Today we are going to be talking about ten bad money habits that are keeping you poor and, even more importantly, how you can change them. It’s time to break these bad money habits once and for all. Let’s get started.

After I had my first kiddo, I quit my job as a dog walker and trainer to stay home. However, we were also $30,000 in debt at the time, and it was at that moment that I realized that I had to make some drastic changes in my life in order to get us out of this hole.

In eight months, we were able to pay off all that debt and slash our expenses by more than half, simply by creating some new money habits.

Here are ten (plus one bonus) money habits to break in 2023:

1. Change your money mindset

One of the first things that I had to change was my mindset. Your money mindset is your unique set of beliefs surrounding money. These are beliefs that you don't even realize that you might have. There are thousands and thousands of subconscious money mindsets that all of us have that we don't even realize we have.

2. Stop the blame game

The second thing that I had to do was stop blaming others for my money situation. At the time, I thought it was other people’s fault that I didn't have any money; for example, it was the government's fault because they taxed me too much or gas prices were too high.

I had a million excuses, and I had to take responsibility for my financial situation. I have never seen a time when blaming someone else for your financial situation led to money in your pocket.

Tracking expenses

3. Eliminate careless spending

The third habit that you need to change because it’s keeping you poor is careless spending. What do I mean by that? It basically comes down to budgeting.

I know people hate that word because it just sounds boring, but basically, budgeting is just seeing how much money is coming in and how much money is going out because the only way you can have control over your money is to have control over your money.

4. Be responsible with credit cards

The number four habit that is keeping you poor is your reliance on credit cards. Credit cards are only in business because the majority of people cannot use them responsibly. The definition of insanity is trying the same behavior and expecting a different result.

So if you have tried credit cards in the past, and you keep messing up with them, you are going to continue to keep messing up with them. Stop using the credit card.

Credit card debt

5. Stop expecting a miracle

The fifth bad money habit that is keeping you poor is expecting a miracle tomorrow. Stop waiting for the miracle of money to just fall into your lap tomorrow because, before you know it, tomorrow becomes a year, then a year becomes two years, then two years becomes a decade, and you're still in the same position that you were in a decade ago.

6. Don’t tackle everything at once

The number six habit that is keeping you poor is trying to do it all at the same time. I think that financial success has different layers to it.

There's cost-cutting, paying off debt, investing, and having a side hustle, but if you try to do all of that tomorrow, you are going to burn out quickly. So I suggest starting in one place and doing that one thing until you have that habit down pat.

Setting financial goals

7. End immediate gratification

The number seven thing you’re doing that's keeping you poor is that you aren't planning ahead for the future. It's no fun to cut your expenses and work really hard to change your life if you don't have a goal in mind. So make sure you're saving for something fun and exciting because you do not want to burn out.

8. Spend time with frugal people

The eighth thing you’re doing that is keeping you poor is your circle of friends and your community. You are the average of the five people that you hang out with most.

So if you are really struggling with money, try to join an investment club or social activity in your area with people who are making the amount of money you want to make a year from now or people who are financially successful.

Side hustle ideas

9. Get a side hustle

The ninth thing that you are doing to keep yourself poor is not making extra money. No matter what your situation is, you can always make extra money. In fact, you can probably make way more money than you think, especially in the digital age.

10. Step outside your comfort zone

The tenth habit you’re doing that’s keeping you poor is you’re staying within your comfort zone. If you want to make drastic changes in your life, you're not going to get there without actually making drastic changes in your life. So you have to get outside your comfort zone. Success happens outside your comfort zone.

Savings jars

11. Automate your savings

Bonus tip number eleven that’s keeping you poor is not having your savings automated. I use Acorn to save money automatically. It rounds up my expenses to the nearest dollar and puts that spare change into a separate account. It is amazing how fast this adds up and how much you don't even notice it.

Bad money habits

If saving money and being frugal is something that you enjoy, you are on the right track to creating better money habits in your life. Addressing these ten bad money habits now will lead to even more financial success in the future.

Which money habits do you plan to change or establish next? Let me know in the comments section below.

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