A habit, as defined by Merriam-Webster, is a usual way of behaving: something that a person does often in a regular and repeated way.
Life’s little luxuries are nice to indulge in every now and again, but when splurges become habitual practices, your savings can seriously suffer.
Try cutting out some of these habits and finally make waves on that 6-month emergency fund you’ve been meaning to build up.
1. Wasting groceries
Picking up food after work on the drive home or ordering takeout is a habit that could cost you quite a bit of money and wasted food. Yes, it’s convenient, but if you’ve already done your grocery shopping for the week, or month, you are throwing money down the drain. Make a grocery and takeout budget for the month and stick to it.
2. Paying your bills late
With charges of $25 and up, late and overdraft fees can really set you back. Setting up automatic payments and making sure you have enough funds to cover your costs will save you money and keep you from having to pay a hefty bill.
3. Fancy lattes every morning
Starbucks is great, most of us can agree on that, but it can also get expensive. Especially if your coffee drink of choice is a $6 venti caramel macchiato (those things are addicting). I’m not telling you not to splurge on your favorite coffee drinks, just don’t make it a habit. Treat yourself to a specialty drink every now and then but opt for a simple, less expensive, cup of joe with cream and sugar, or even better make your coffee at home!
4. Designer shopping
I love my MK bag; in fact, I may even be obsessed with it, but updating to a new handbag or shoe every time Michael Kors or Coco Channel decides a style they released last week is outdated can dry up your entire paycheck. Splurging on expensive items is something you should do sparingly. Try taking a page out of Facebook CEO Mark Zuckerberg’s book and just wear the same thing every day. It seems to work for him!
5. Paying for a gym membership… you don’t use
Ok, sure you had great intentions of working out every day when you originally bought that $50 a month gym membership, but intentions don’t save you money, and in this case, they lose you money. Time to be realistic and ask yourself “is it really worth it to pay for something I haven’t used since January 2nd?”