5 Terrible Money Habits You Need to Quit Now

It’s easy to slip into bad habits — whether it’s sleeping in late, eating unhealthy foods or procrastinating on your work.

There are plenty of bad habits that have to do with how you handle your money, too. You might even be completely unaware you have a bad habit. It’s worth taking a closer look, though — you could be unnecessarily wasting your hard-earned cash.

Here are five terrible money habits you should be aware of and need to quit now:

1) Dining at Restaurants

Many people spend thousands of dollars every year by eating out at restaurants and fast food places. While $10 here and $30 there might not seem that bad, those costs can quickly add up.

If you buy your lunch when you’re at work, you can cut down on some expense by crafting your favorite sandwich and bringing it in. If you enjoy restaurant-dining with friends, have them over to your house for a home-cooked meal instead of going out. You could even make your own coffee in the morning before heading off to work instead of stopping at Starbucks.

Believe it or not, there are cheaper — and just as good — alternatives to eating out, saving you money each week, month and year.

2) Purchasing Luxury Items

It’s nice to be able to splurge on expensive luxury items from time to time. You work hard for your money, so you should be able to spend it on whatever your want, right? Sure, but within reason. Forgoing the regular purchase of luxury items might be more ideal if you have a tight budget.

Make sure you really think before you buy something expensive. Do you need a slightly bigger 3D television when your current television works? Is that new car really necessary when you can barely pay your mortgage? Be smart about your purchases and really evaluate the necessity of the item.

3) Not Using Loans

If you’re tight on money, then you should consider taking out a loan. Although it might be tough to get a loan from a bank, other options are available. For example, there are companies that offer personal loans to people who really need it. Employers sometimes even give travel loans, so make sure you talk to your boss if you’re spending a lot on gas or mass transit.

Just be careful — loans can be helpful, but they can also be dangerous. You’re going to have to pay it back at some point, so make sure you’ll have the money in the near future.

4) Not Tracking Your Spending

It’s your money. No one is going to track it better than you will.

Make sure you keep a record of everything you buy. It’s very easy to lose track of how much you’re spending. Adding up your expenses, however, will give you a great perspective on the amount of money you have going out — and how much is potentially being wasted.

Create a new Excel sheet and type in the name of the item and price of everything you spend money on. Make sure you have a cell that gives you the sum, so you’ll always know how much you have already spent. Look at this document every time you’re about to make a big purchase.

5) Entertainment Costs

When it comes to your entertainment, try not to spend money when you don’t have to.

Turn on your TV. How many channels do you actually watch? Maybe ten at most? Now, how many channels do you flip by to get to those ten channels?

Cable is starting to become unnecessary when networks either post shows on their websites or have a streaming channel on Apple TV, Roku and other devices. Why would you pay for cable when you can watch the shows you want to watch for virtually nothing?