Spending Habits to UNlearn

Cliché as they may be, there’s a reason why New Year’s resolutions are often centered on money. There’s lots of advice about stuff you should be doing—like building a budget—but sometimes it’s more beneficial to figure out what you should probably stop or think twice about doing.

Here are four spending habits to UNlearn in the new year.

OVERSPENDING TO TREAT YOURSELF

Let’s face it, treating yourself and the people you love is fun. However, splurging to boost your mood can become an awfully spendy habit. Ever heard the phrase “retail therapy”?

It refers to emotional spending, AKA chasing dopamine hits with your purchases. It’s a habit worth trying to break, especially because of how easy shopping has become. Think about it: no matter where you are or what time it is, if you’ve got your phone, you’re just a few clicks away from making a purchase. UNchecked spending can quickly turn into debt or otherwise eat into potential savings.

UNCONTROLLED CREDIT CARD USAGE

“With great power comes great responsibility” is more than just comic book wisdom. It’s also UNbelievably good advice for credit card users. Credit cards are a powerful tool for building credit and boosting your credit score, but you gotta be responsible with ’em.

You’ve heard the advice to freeze or cut your credit cards to curb out-of-control spending. If that’s what it takes, then go for it! If that’s not your style (especially since your cards live on your phone anyway…), try setting boundaries that align with your financial goals and commit to sticking to them. It’s also worth exploring how a balance transfer could help you get a lower rate to make paying off debt easier.

MAKING LATE PAYMENTS

The early bird gets the worm. The late bird gets worm scraps as a penalty for not being on time. Late fees are like worm scraps—and you probably don’t find either all that appealing.

Being on time may not be your thing, but it’s almost always going to cost you. Automating your payments is a fast and easy way to do away with this habit. Set up bill payments within online banking, and we’ll do the work for you every time it’s time to pay.

OVERPAYING FOR SUBSCRIPTIONS

Are you a sucker for a free trial? Do you now have subscriptions you don’t necessarily need, but wound up with because of not cancelling said free trial? If so, track what you’re reading, watching and listening to for one more. This’ll give you a better idea of what’s worth paying for and what’s costing you more than you realize.

The results may surprise you.

This blog is intended for educational purposes only. For details about specific products or services, see credit union for details. For questions about investments, please consult your financial advisor.