4 BAD money habits you need to break

4 bad money habits you need to break  

For many people the start of a new year is a chance to look back  and to set some new goals or resolutions for the coming year.

If you haven’t got round to setting any resolutions yet, I am going to help you.

I am going to talk about 4 bad money habits that you need to break.

Dealing with money issues and organising your finances for some people is a daunting prospect.

But, every once in a while, it can be worth putting some time aside and making sure everything  is in order.

Often, our worst money habits aren’t necessarily through bad decisions we have made, but rather by a lack of action.

Doing nothing is always an easy decision, but it’s rarely going to be the best thing for your finances.

Below are  4 habits and mistakes that need to be kicked out of your financial life.


  1. Not keeping track of your monthly income and expenditure

Setting a monthly budget is an essential first step for anyone looking to keep the finances in order.

Make sure you know what you’ve got coming in each month and what’s going out – both your essential outgoings ( things that have to be paid – bills etc ) and the more discretionary things ( nice too’s – clothes, treats etc).

It sounds obvious, but if you’re consistently spending more than you earn, you’re going to find it harder and harder to keep your head above water.

And if you do have a surplus each month and you’re not doing anything with it, you’re missing out on an opportunity.

  1. Only holding cash and ignoring investing

If you’re holding all your savings as cash, the first thing to say is well done for actually saving – but could your money be working harder for you?

A cash account can be a great if you need access to the money at short notice or in the next few years (we should all have an emergency fund), but often money is held in cash purely through a lack of knowledge or  understanding of investing.

Exploring the option to invest can mean giving your money the chance to grow.

  1. Putting off making money decisions – are you a procrastinator ! 

Whether it’s switching bank accounts or starting a savings account, it takes up time.

Time we’d rather spend doing something else.

But just like any decision in life, addressing the issue sooner rather than later is usually the best option.

This should result in less time worrying and more time reaping the benefits of a decision well made.

  1. Not thinking long term

It can be hard to focus on the long term when there’s so much going on in the here and now, but the longer you save for, the more chance your money has to grow

Albert Einstein is said to have described compound interest as the most powerful force in the universe.
The longer you can save or invest for the greater your future wealth will be.


There’ll always be conflicting needs and goals for your money and it can be easy to prioritise what’s happening soonest.

Maybe none, or maybe all of the above, apply to you –  even so the key message to take away is that you need to be in charge of your own financial future.

Swap the worry and procrastination for action, and get your finances on track.

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My diary is always open for a chat about how you can get greater control of your finances.

I wish you a happy, healthy and prosperous 2021.

Lee Gardner



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