More money can't fix bad spending habits

We all tend to overspend here and there. However, when it happens regularly we get used to doing it, become not fully aware of it and form a bad financial habit.

Bad financial habits can have a lasting impact. The happiness of impulse spending is quickly replaced by regret and potentially guilt when you start to think whether you really needed to make this purchase.

Short term: you start struggling to keep up with your expenses.

Medium term: your financial goals may be compromised.

Long term: you might be completely unprepared for emergencies like a job loss or medical bills.

Improving your spending habits leads to achieving your financial goals faster.

It is a challenging but rewarding process to replace bad financial habits with the newly formed healthy ones. More money can't fix bad spending habits.

You can start working on forming healthy money habits now by learning to recognise your behaviour in the moment of making a decision to purchase something. While being fully aware of your urge to buy, ask yourself whether this purchase is necessary or you might regret it later. How do you feel about your answer? If you feel unsure or that you might be feeling guilty after the purchase, pause for a second and reconsider your decision.

After repeatedly practising this newly acquired skill, it will become a good habit that will help you to build a solid foundation for your finances.