5 Money Habits to Break Up With This Year

Healthy financial habits can make life feel less stressful and more predictable. On the flip side, certain money habits can quietly hold you back from reaching your goals. The good news is that even small changes can make a meaningful difference over time.

Here are five money habits that might be worth breaking up with.

1. Ignoring Your Budget

Believe us, we know creating a budget can be tedious. But avoiding making one can make it difficult to see where your money is going. Without a plan, it is easy to overspend or miss opportunities to save.

To easily make a budget:

• Track your spending for one month
• Separate needs from wants
• Set realistic spending limits
• Review and adjust as needed

A budget is not about restriction - instead, it's about helping your money support what matters most to you.

2. Relying Too Much on Credit Cards

Credit cards can be useful tools, but relying on them to cover everyday expenses can lead to long-term debt and high interest charges.

When possible:

• Pay more than the minimum payment when you can
• Focus on paying down high-interest balances first
• Build an emergency fund to reduce reliance on credit
• Use credit cards for planned purchases rather than impulse buys
  
  

3. Putting Off Saving

Waiting until you feel financially comfortable to start saving can make it harder to prepare for emergencies or future goals. Starting small is better than not starting at all.

To start saving:

• Set up automatic transfers to savings
• Start with a manageable amount
• Gradually increase contributions over time
• Create separate savings goals for different needs
  
  

4. Avoiding Financial Check-Ins

When finances go unchecked for long periods, it becomes easier to overlook spending patterns, subscriptions, or changes in your financial situation.

Stay on top of it and:

• Review your accounts monthly
• Monitor recurring expenses and subscriptions
• Track progress toward savings or debt payoff goals
• Adjust your plan when income or expenses change
  
  

5. Comparing Your Finances to Others

Everyone’s financial journey looks different. Comparing your progress to others can create unnecessary pressure and unrealistic expectations.

Instead, try to:

• Focus on your personal goals
• Celebrate small financial wins
• Set timelines that fit your situation
• Remember that steady progress adds up over time

In short, it doesn't take drastic change to improve your money habits. Focusing on one or two areas at a time can help build confidence and create long-term financial stability.