Say Goodbye to These 5 Toxic Financial Habits in the New Year!
The new year is your chance to kick those pesky money habits to the curb! PM Images/Getty Images
As you step into the fresh canvas of the new year, perhaps your thoughts are racing as you glance at the mountain of credit card bills or bank statements: Wow, it’s time to get my finances sorted!
Maybe last year saw you indulging in online shopping sprees, evading some credit card payments, or grappling with a medical bill that’s throwing your budget into chaos. If you’re eager to gain control over your spending in 2025, we’ve got you covered! Here are five financial habits to ditch as you embrace a more financially savvy year ahead.
Habit to Leave Behind: Succumbing to Temptation and Buying What You Don’t Need
In this whirlwind of constant online sales and targeted ads, it’s all too easy to overspend. To reign in those impulse buys, try minimizing your exposure to shopping promotions and take charge of your social media feeds, suggests sustainable fashion expert.
- Unfollow social media accounts that encourage unnecessary spending! Fashion influencers and brand pages can be traps that lure you into spending.
- Unsubscribe from brand emails. Daily updates about sales can lead to unplanned purchases.
- Follow influencers who promote mindful consumption. They can become your support system in changing spending habits.
- Block websites where you tend to shop impulsively. This simple step can eliminate those tempting browsing sessions.
Explore how the “No-Buy Challenge” can help you save money!
Habit to Leave Behind: Chasing After Expensive Possessions
When life offers a raise or a new job, many find themselves caught in the trap of “lifestyle creep.” Suddenly, the allure of fancier cars and bigger homes seems irresistible, yet it’s a slippery slope. Just because your income is up doesn’t mean your spending should be!
As your salary increases, aim to boost your savings rate, not your expenses. Consider direct deposits into a high-yield savings account to grow your wealth while enjoying life sensibly.
Learn more about lifestyle inflation and how to avoid it.
Habit to Leave Behind: Maintaining Unused Subscriptions
The first step is to audit your subscriptions. Check your bank statements and see what services you’re actually using. If a subscription isn’t worth it, let it go!
For those services you only use occasionally, keep a “TV diary” to track your viewing habits. This can help you decide whether to keep or ditch that streaming service.
Listen to our episode on saving money on streaming services!
Habit to Leave Behind: Ignoring Credit Card Debt
If you frequently miss payments, it’s high time to confront that credit card debt. Create a solid plan to chip away at what you owe.
Consider using free online calculators to map out a repayment strategy. Knowing your plan can empower you to tackle debt head-on and reclaim your financial freedom.
Discover smart credit card habits to help you stay on track!
Habit to Leave Behind: Accepting Medical Bills You Can’t Afford
Facing an overwhelming medical bill? Don’t just accept it blindly. Reach out to your hospital for potential charity care programs that can help reduce costs.
Request an itemized bill, and scrutinize every charge. If the amounts seem inflated, negotiate them down! Many hospitals are open to settlement offers, especially if you can pay upfront.
Learn how to negotiate your medical bills for better outcomes!
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