Five Bad Money Habits and How to Break Them


If you want to set yourself up for financial success, changing your habits is a great start. Just like swapping out your afternoon soda for a cup of tea, replacing your bad money tendencies with positive spending and saving behavior, is a great first step in working towards a stronger financial future. With Perpay, breaking these five bad money habits might be easier than you think!

1) Spending more than you earn

Whether it’s the new Apple Watch or a Starbucks coffee, many consumers make educated guesses about whether or not they can afford to buy something with their credit card. The problem with that is that when it comes to paying off those extra expenses at the end of the month, it might not be as easy as it felt in that moment.

That why it’s important to try to live below your means, which requires staying educated about your spending. Budgets are especially useful when it comes to avoiding spending more than you earn each month. With automatic deductions made directly your paycheck each pay period, Perpay helps to ensure that you are not spending more than you earn.

2) Paying the minimum on your credit card balances

While it may be tempting to pay the small, minimum payment on your credit card, it’s important to keep in mind that you will end up paying much more in the long run. That’s why, with zero interest and no fees, purchasing items with Perpay instead of with minimum payments on a credit card can save you big in the long term.

3) Impulse purchases

It happens to the best of us. However, impulse purchases can leave a serious dent in your bank account. For this reason, it’s important to always shop with a list when heading to the mall, supermarket, or drugstore (yes, that means Target, too).

For bigger temptations, try and force yourself to wait a certain period (a day, a week, or even a month) before pulling the trigger. If you can’t resist, try coming up with a smart plan for your purchase rather than immediately buying it with cash or credit. With Perpay, items ship after just one payment, so you can still have them quickly, without hurting your overall budget.

4) Not budgeting or tracking your spending

We’re all about budgeting at Perpay. While Perpay takes a “built in budgeting” approach to purchasing, we also consistently remind our members about the importance of tracking your spending and keeping a budget. Without tracking your spending, it’s hard to understand exactly where your money is going. By creating a budget and tracking your spending, you’ll be able to prioritize your expenses and even identify where you can cut back overall spending.

Plus, with the technology available to us, monitoring your spending is easier than ever. Create a budget, track your spending, and even receive financial advice with apps like Mint and Albert. Making purchases through Perpay is also a great way to budget without having to think about it! Set it and forget it.

5) Putting off saving

Whether it’s for your retirement, an emergency, or your summer vacation, saving is extremely important. Putting off saving for the future might seem harmless now, but it could really hurt you in the long run. Plus, knowing that you have savings to rely on down the road can give you the confidence and peace of mind to make smarter decisions.

If you have a retirement fund or an emergency fund (or both), try to resist the urge to dip into either account. Most traditional IRA withdrawals made before age 59 1/2 incur taxes and penalty fees, so you could be setting yourself up to pay more now and in the long run by preventing your retirement savings from growing. Instead, try alternative ways of purchasing larger items, like Perpay. With small, easy payments, you can make buy big ticket items without dealing with fees, interest, or stress of getting off course with your savings.

Fiona McCurdy