A bad habit can be hard to break, especially if
you don't know you have one. Ask yourself these questions to find
out where you can improve your spending habits:
1. Are you unable to save any money? This means
you're not reaching your goals.
2. Have you reached the limit on your credit cards? This means you
have no access to additional funds and could be in trouble in an
3. Do you only pay the minimum amount due on your credit card bills
because that's all you can afford? This means you're probably paying
more money in interest than you should.
4. Do you buy things because they make you feel good? This means
you're not focused on your financial goals.
5. How often do you buy something and then return it because you
don't need it? This is called impulse buying, which can happen when
you don't plan ahead.
6. Do you "borrow" money from your savings or emergency
fund to pay the rent or other bills? This means that your savings
are not being used for the future, which means they're not "savings"
7. Are your monthly expenses, not including your rent or mortgage,
more than 20% of your take-home pay? This means that your debts
are too high for your income. You're probably in over your head
and could benefit from financial counseling.
8. Have you ever been asked to cut up a credit card or been denied
credit? This means you have a blemished or insufficient credit
history and could benefit from financial counseling.
If you answered yes to any of these questions,
then it's time to take a closer look at your spending habits. You
could be risking your credit and setting yourself up for even bigger
financial worries down the road.