I will freely admit that I’ve never been particularly good at managing money. (Let’s just say that our financial situation improved dramatically once I figured out how to use auto-pay!)
But over time, I realized that being good with money isn’t a talent you’re born with. It’s a skill, and like any skill, it’s something you improve by establishing good habits and practicing them consistently. And the inverse is true as well—poor money management is usually the result of consistently practicing bad habits!
And that’s what we’ll be looking at in today’s post — 7 bad habits that can cost you money, drain your budget, and undermine your efforts to save. By avoiding these 7 pitfalls, you can help ensure that you’re making the most of your hard-earned money.
7 Bad Habits That Are Costing You Money
1. Your Spending Isn’t Necessary
A lot of expenses are necessary, like paying your mortgage or buying groceries. It’s the expenses that aren’t necessary you should be worried about. Things like buying bottled water, paying for a gym membership you never use, and getting parking tickets are good examples of unnecessary expenses that can cost you a lot over time.
For more examples of unnecessary expenses that are hurting your budget, check out this post.
2. Your Tires Aren’t Properly Inflated
The amount of air in your car’s tires can have a surprisingly big impact on your gas mileage! According to FuelEconomy.gov, keeping your tires properly inflated can improve your gas mileage by over 3% and keep more money in your pocket.
Use a tire pressure gauge regularly to check the amount of air in your tires, and make sure it matches the tire pressure recommendations that are listed in your car’s manual.
Related: 9 Sneaky Hidden Fees You Need To Be Aware Of
3. You Don’t Keep Track Of Change
Getting change after paying with cash can be cumbersome, but you should resist the temptation to just leave it lying around. If you hang onto it, that change can add up over time and save you hundreds of dollars a year!
Pick a cup or container to use as a coin bank, and make sure that all of your loose change ends up there. (To make it even easier on yourself, get a coin bank that keeps track of how much you’ve saved or a coin sorter that will sort and roll your coins for you!)
4. You Throw Out Food
Food waste is not only an expensive habit, but it’s bad for the environment too. You can cut back on food waste in your home by only buying as much fresh produce as you can realistically consume. Make sure to keep track of expiration dates as well, so you can make a plan to eat your produce before it expires.
5. You Don’t Bother With Rebates
Many products come with mail-in rebate offers, which companies offer because few people take advantage of them. If you have a mail-in rebate offer, it’s definitely worth a few minutes of your time to send it in.
There are also plenty of money-saving opportunities for those who prefer to shop online. Using a service like Rakuten can be an easy way to earn cash back on your online purchases.
6. You Only Buy Name Brands
Many of us are “brand loyalists” when we shop for groceries, sometimes for no particular reason. But since generic items and store brands are often cheaper than their name brand counterparts, it’s worth giving them a try to see how you like them!
More Ideas You'll Love
If you try the generic version and can’t really tell the difference, buying the cheaper option can can help you save. To find out which store brand products OGT readers swear by, check out the list here.
7. You Neglect Your Car
Skipping oil changes and other vehicle maintenance can save you a few dollars in the short term, but it may lead to expensive repairs down the road. You’ll save yourself a lot of money in the long run by taking your car in for regular oil changes, tire rotations, and inspections.
What’s one good habit of yours that saves you money?
People who still insist upon using incandescent bulbs take notice. Years ago, in an effort to cut down on our electric bill, I switched 99% of the light bulbs in our home to cfl bulbs. That helped a bit, but cfls don’t last as long as they’d like you to believe, and they are a pain to recycle. Thankfully, you can take them to your local Lowes for proper recycling. When led bulbs became more reasonably priced, I switched over to them. First I tried the cheap ebay leds from China, which ended up dying within a year or two. I have since gone with name brand bulbs (GE, Philips, etc,) to replace those junk bulbs, and there has been a noticeable reduction in the power bill, and exactly none of these bulbs have burned out. This, by the way, is with only two of us in our home. If you have a large family who have a lot of lights on, you would save even more.
Please log in or create a free account to comment.Making coffee at home!
Please log in or create a free account to comment.A Keurig machine is your friend, but only if you use your own ground coffee in a k-cup insert instead of buying overpriced k-cups at the store.The amount of coffee in a store bought k-cup isn’t enough to make a decent size cup of coffee to begin with. And then there’s the waste involved with the disposal of those cups.
Please log in or create a free account to comment.Food does not “expire.” Those dates were never intended to be used that way
Please log in or create a free account to comment.Saving? Or just spending less?
We’ve been conditioned in this country to think they are the same thing. And we are among the world’s worst savers.
Unless you bank the funds not spent, you aren’t saving.
Please log in or create a free account to comment.When my husband and I were first married we had a large change jar. We added to it during the year and at Christmas time we rolled up the change. The money in the jar ranged from $350 to over $500 some years. Back then my husband dumped his change every day. He never used change. I used mine but when I had too much I’d dump it all in the jar.
Please log in or create a free account to comment.I have a 5 gallon glass water bottle, the type you use to see on office water coolers before they went to plastic. I got in the habit years ago of dumping my pennies in there whenever I had them in my pocket. When it was nearing full, I finally decided to take them to our bank to cash out as they have a coin counting machine in the lobby. I ended up with about $170 just from those pennies.
Please log in or create a free account to comment.Review your credit card and cell phone bills. Are there charges on there for video services that were free for a limited time but now you are paying for? Those charges can catch you off guard. Over the last 3 years I have repeatedly asked my cell phone company for a cheaper plan. We were paying for 4 lines, two of which were no longer used. I finally got hold of the right representative and got our plan switched to a 2 line senior citizen plan, which is available at age 55. It shouldn’t have been that hard to accomplish, but it took 3 years! My phone bill has been cut in half.
Please log in or create a free account to comment.Jo, these are great tips! To add to your thoughts, you should always check your bank and credit card statements on a daily basis. You should also go over your bills carefully. I have found errors and charges I either forgot to cancel or I didn’t authorize.
As far as your phone bill (or internet, cable, etc…) the trick is to say you want to cancel your service. They send you to the “Retention Department” and these people have more authority then a regular customer service rep, to offer you the best deals and savings, because they do not want to lose your business.
Please log in or create a free account to comment.A few years ago I gathered up all the change we had all over the house. We had a whopping $700! I almost flipped!
Please log in or create a free account to comment.Number 5 re: Rebates, you list Ebates. It’s now called Rakuten.
Something I do that saves money in the long run is pay more than the minimum on loan payments. For example, my car payment used to be $317/mo but I paid $350/mo. Now, my minimum payment is less than $50/mo. I’m still paying $300/mo to keep paying it down faster and save on interest. You can also refinance your loans to get a lower rate.
I also pay more on each credit card until I get one paid off then I roll that payment over to the next highest interest credit card so it’s paid off even faster.
You can improve your credit score by paying bills on time, keeping debt low, paying more than the minimum on loans and credit cards, and keeping one credit card and using it RESPONSIBLY.
My score used to be in the mid-600 range. But by doing those things, it’s around 730 even though I still have a bankruptcy from several years ago showing on my report.
Another thing money experts suggest is moving credit card balances to lower interest cards. I’ve not done that but it’s something to check into if you have a lot of credit card debt.
Please log in or create a free account to comment.The Dollar Store is a great place to shop. But, be prepared. Some things seem to be a great value, however for the same or more amount often times at Walmart is cheaper. We like to buy the frozen bags of fruit occasionally. The foodstuffs are often a smaller quantity and often fit my needs for menus with just the amount I need and no leftovers. All the school and home office items are great for use. Unless it has to be a particular brand get it from The Dollar Store.
Please log in or create a free account to comment.I take #6 a step farther by not buying “products” but ingredients. Some ingredients are still branded of course, e..g, cream cheese, butter, canned tomatoes etc. but I reason that the more I make from scratch or nearly so, the farther our money will stretch – or at least the more worthwhile the expenditure will be. For products that really are cheaper pre-packaged than homemade (like ice cream), to me it’s worth spending more to have foods that are healthier in the long run.
Please log in or create a free account to comment.The biggest money saver for me is to avoid coffee shops. It’s outrageous that a simple cup of coffee there costs around $3.50! You can make it at home for pennies. Most of the time the coffee made at home tastes better too! Win/win.
Please log in or create a free account to comment.Make your own laundry soap!
Please log in or create a free account to comment.And if you haven’t seen it already Jillee has a recipe for homemade laundry soap. I haven’t tried it yet but I will.
Please log in or create a free account to comment.To help with rebates, I keep a bank bag with envelops, stamps & those free address return labels in my car. That way I can drop the rebates in the mail on the way home or just drop them in my own mailbox.
Please log in or create a free account to comment.Here’s the big old fashioned way of saving money at the grocery store; make a list and stick to it.
Please log in or create a free account to comment.Only buy what you need even if there is a sale. The item will go on sale again in the future and if you are low you can pick it up then. Our houses are not storage lockers.
By doing this my grocery budget went down by hundreds of dollars a month and we don’t throw anything away or have expiring dates in the past.
I save lots of money by making things that I learned from you, Jillee! My favorites are the laundry detergent and instant oatmeal packets. ( I’m not an oatmeal eater except if it’s in a cookie, but everyone else loves them, and say that they taste even better than the store packets.) I make almost all of my cleaning products from your recipes, and I have a great video of my grandson in his walker pushing around a swiffer mop with a pink fluffy sock on it! He LOVES cleaning the floors with it!
Please log in or create a free account to comment.Thank you!!
Please log in or create a free account to comment.I don’t understand why people don’t just use their change. If you save change for many years, you actually lose money because of inflation. When I buy something with cash that is 2.72, I pay 2.72. Why mess with jars of loose change? You’re not actually saving money, you’re just saving change.
Please log in or create a free account to comment.I use my change as well. Money is worth more now then later and I like to get rid of my pennies when I can. Also, so many stores would like to have small bills and coins. I do save some quarters in a special place in my car in the event I need to stop at an air pump to inflate my tires (when the temperature changes, the tire light appears). The coins I find on the street I save and give back to the Salvation Army bell ringers at Christmas.
Please log in or create a free account to comment.One does need to be careful when buying the store brand products. Sometimes the brand name will be cheaper than the store brand. Recently I purchased black pepper, have been buying the store brand for years, had put it in my basket, looked back at the price, and couldn’t believe the difference in the prices, was almost a dollar, so I got the brand name, plus I actually had a coupon so I saved even more. This was at WalMart, I have noticed numerous items that the brand name was the cheaper way to go. It pays to compare the prices. Some items I only want the brand name, just has a better taste. I do buy alot of the store brand items tho.
Please log in or create a free account to comment.Have a pair of boots you just don’t wear any more but can’t part with? Especially if they are decorative, like mine are caramel colored cowboy boots I love… Now I keep them in back of the entry door to my apartment. Why? I pay for cash items with bills and get as much change as I can and put it in there every few days. It REALLY adds up! I throw some extra bills in one boot and the change in the other. Yeah for simple saving the fashionable way! :)
Please log in or create a free account to comment.I save money by bringing my lunch to work. Even though we have a deli at the store and can buy things to eat the cost of this adds up very quickly. I also have a change counter that I use for my extra change. Unless the money is very filthy I save it. I discovered years ago the small change can really add up. My work also has a coins to cash machine.
Please log in or create a free account to comment.With my job I had wondered how I would pay for Gifts at Christmas other times, and spending money for trips, combined with any money I get from tips at work. I’m so glad I discovered this method.
I also have a cup at home that use to bring water for work. We have a filter on our water pitcher that filters our water. I rarely buy water bottles at the store.
Please log in or create a free account to comment.I have learned so much from this blog. Like how to properly use instant pot and the difference between it and the crockpot. And the biggest lesson how to save money and when the best time is to purpose certain items.
Please log in or create a free account to comment.