9 Money Habits Holding You Back From Your Dreams

Ever find yourself scrolling through bank statements, wondering where all your money went? 

You're not alone if the thought, “I should really get on top of my budget,” plays on repeat in your mind yet feels as distant as starting a diet “tomorrow.” It's like every month is a loop of “should've, could've, would've,” with finances slipping through your fingers like sand. 

We get it. Life throws curveballs, and sometimes, just keeping up feels like a win. 

But here's the kicker: what if bad money habits are holding you back from your dreams? Imagine flipping the script, where every dollar propels you closer to your dreams, not away. 

Let's roll up our sleeves and transform those “should'ves” into “I did.” 

By identifying the money habits holding you back, it’s possible to address the problem and pivot towards your financial goals. Here are the top 9 culprits that might be holding you back:

1. Keeping Unused Subscriptions

Ever peeked into your monthly statements and spotted charges for things you hardly use? Yep, those sneaky subscriptions can quietly drain your wallet. It's like paying rent for an apartment you never sleep in. Crazy, right?

Unused subscriptions can come in all shapes and sizes. Consider:

• Streaming services: For the shows you never watch.
• Food delivery apps: When you prefer cooking at home.
• Dating apps: If you're swiping left on using them.
• Game apps: That you haven't opened in months.
• Digital news subscriptions: For news you don't read.
• Food prep subscriptions: If the boxes collect dust.

The fix? Dive into your bank statements or subscription settings. Unsubscribe from the ones that don't spark joy or you forgot existed. 

Redirect that cash towards your dreams, whether it's saving for a beach getaway or padding your emergency fund. It's about making every dollar count for something you truly value. 

2. Chasing Sales without the Need

It's a common scene: a big, bold “SALE” sign lures you in, promising savings on something you hadn't even thought of buying. Suddenly, your cart's full, and so is the regret that follows. 

The thrill of snagging a deal can overshadow the reality: buying things you don't need, just because they're on sale, doesn't save money; it spends it.

Here's the twist: flip the script by adopting a mindful shopping mantra. Before “take advantage” of the next sale, ask yourself: “Do I need this, or is the deal too sweet to pass up?” 

If it's not on your list, it's not in your cart. Period.

Start with:

• Making a shopping list before sale seasons hit.
• Setting a budget for discretionary spending.
• Reminding yourself of your financial goals before shopping.

This way, you're not just chasing deals; you're chasing your dreams, with every dollar saved bringing you a step closer. Remember, the best savings come from not spending at all on things you never needed.

3. Not Saving for Gifts and Holidays 

Ever noticed how holidays and birthdays sneak up on you, as if they're playing a stealthy game of surprise? You know they're coming, yet when they do, it's a mad dash to the store, credit card in hand. 

The aftermath? 

A hefty bill that sticks around longer than the confetti on the floor.

The truth is that these aren't surprise events. They're as predictable as the sunrise, which means you can plan for them. How? Start a gifts fund. Each month, tuck away a little cash into a dedicated savings account. Even a small amount can add up and when it's time to celebrate, you'll shop stress-free, knowing you're not diving into debt for a slice of cake or a thoughtful gift.

This approach isn't just kind to your wallet; it's a gift to future you, who'll thank you for not piling on debt for past celebrations. 

Plus, it makes giving even more joyful, knowing each present is already paid for, with no strings (or interest charges) attached!

4. Failing to Save for Family Vacations

Just like with gifts, vacations often fall into the “I'll figure it out later” category, leading to last-minute bookings charged to credit cards. 

The excitement of travel dims a bit when you return home to a daunting bill, doesn't it?

Here's a thought: treat vacation saving as a non-negotiable part of your monthly budget, much like saving for gifts. Start a vacation fund where you regularly contribute a set amount. Planning your trip well in advance not only gives you something to look forward to but also lets you hunt for the best deals, reducing costs even further.

This strategy turns vacation planning from a financial burden into an exciting countdown, without the post-holiday debt hangover. 

Imagine sipping that beachside cocktail, basking not just in the sun, but in the glow of financial savvy. Now, that's relaxation at its finest!

5. Paying Only the Minimum on Credit Cards

Speaking of credit card debt…

Paying just the minimum on your credit card is like keeping the debt monster at bay. It’s like feeding the debt monster a tiny snack, just enough to keep it coming back for more. The less you pay now, the more you'll pay later, thanks to interest stacking up like dishes after a feast.

So, what's the game plan? 

Aim to pay more than the minimum each month. Even a little extra can slash the interest you owe and shorten your debt's lifespan. If you're juggling multiple cards, consider the snowball method: start with the smallest balance, pay it off, and then move to the next, using the momentum to tackle larger debts.

This approach doesn't just reduce what you owe; it's a direct investment in your peace of mind. Watching your debt shrink is empowering—a financial victory dance worth every penny.

To learn more about credit card pay-off strategies, check out my previous post: Dealing With Credit Card Debt When You’re in Over Your Head.

6. Buying Goods to Impress Others

Ever found yourself splurging on the latest phone or eyeing the top-shelf wine, all for the sake of a few impressed looks? This habit of upgrading or choosing pricier options just to keep up appearances can quietly drain your wallet. It's the craving of approval that often outweighs the rational voice in our heads.

But remember, genuine connections are built on shared moments, not shared price tags. 

Before reaching for that next shiny object, consider:

• Upgrading to the latest tech gadgets when your current one works just fine
• Buying new clothes every season for the trends, not the need
• Opting for the fanciest wine or meal to impress a dinner party
• Leasing a luxury car instead of choosing a reliable, budget-friendly option

Focus on making choices that reflect your values and financial goals, not the expectations of others. Investing in experiences and items that bring you genuine joy, rather than fleeting approval, is a step towards lasting happiness and financial stability. 

Let's aim to impress with our savvy, not our spending.

7. Overusing Food Delivery Services

Ah, the convenience of food delivery at our fingertips! It's tempting to swap pots and pans for a few quick taps on our phones, especially after a long day. But here's the rub: those delivery fees, service charges, and tips add up, turning convenience into a costly habit

Here's a tasty thought: cooking at home more often. Not only does it save money, but it also turns mealtime into an adventure in your kitchen. If the idea of cooking every day feels daunting, start small:

• Meal prep for the week: Cook in bulk and enjoy homemade meals that just need a quick warm-up.
• Have a cooking night with friends or family: It's fun, and you learn new recipes.
• Explore cooking challenges: Try making your favorite restaurant dish at home.

Limiting food delivery to special occasions rather than the norm can dramatically cut unnecessary spending. Plus, discovering the joy of cooking is like finding money in your pocket you didn't know was there. 

8. Not Taking Advantage of Retirement Contribution Match

Skipping out on your employer's retirement contribution match is like walking past free money every payday. 

Imagine your employer offers a 50% match on your retirement contributions up to 6% of your salary. If you earn $50,000 a year, 6% of your salary is $3,000. By contributing $3,000 into your retirement account, your employer would add an additional $1,500 (50% of your contribution). 

That’s $4,500 going into your retirement savings each year instead of just $3,000.

Now, let’s project this over 20 years with an average annual return of 7%. If you contribute your $3,000 yearly without the employer match, you’d have about $137,000 after 20 years. 

But with the employer match (contributing a total of $4,500 a year), that amount jumps to approximately $206,000. That's nearly $70,000 more for your retirement, just from taking advantage of the match!

This example shows the powerful impact of employer matches on your long-term savings. It's a crucial step in securing a comfortable retirement, proving that a little attention to your benefits now can pay off in the future.

9. Living Paycheck to Paycheck Without Budgeting

Living paycheck to paycheck is a tightrope walk over a financial canyon, where one misstep—a sudden expense, an unexpected bill—can mean a fall into debt. The root of this high-wire act? Usually, it's not budgeting.

Here's how to step off the wire and onto solid ground: Start by tracking every dollar that comes in and goes out and organize them into categories. You might discover that what's been leaking your funds isn't a necessity, but unnoticed spending. That daily treat, those impromptu online purchases—they add up.

Creating a budget isn't about restriction; it's about making informed choices that align with your priorities and goals. By gaining control over your money, you're not just avoiding the financial canyon; you're building a bridge to your dreams, one dollar at a time.

Unsure where to start? Start here.