Five Bad Money Habits and How to Break Them
Updated August 2026
Building better money habits doesn't have to be hard. Small changes to everyday decisions can make a big impact over time. Here are five common money habits that hold people back, and simple ways to break them.
1. Spending More Than You Earn
It can feel easy to swipe a credit or debit card for something you want, like a new gadget or a coffee run. The tricky part then comes at the end of the month, when bills are due.
Living below your means starts with knowing where your money goes. A budget can help you plan ahead and avoid overspending each month.
When you shop the Perpay Marketplace, your payments come out of your paycheck automatically through payroll direct deposit. This can help you manage larger purchases while staying on track with your budget.
2. Overdrawing Your Checking Account
It can happen fast. A payment goes through before your paycheck lands, and suddenly you owe an overdraft fee. Those fees average close to $27 each, which can add up quickly if it happens more than once.
By keeping a small buffer in your account and checking your balance before big purchases, it will become much easier to avoid these fees.
3. Making Impulse Purchases
Impulse buys happen to everyone, but they can quietly drain your bank account.
Shopping with a list can help, whether you're at the store, the mall, or the drugstore. For bigger purchases, try waiting a day, a week, or a month before you buy. Or, you can shop on the Perpay Marketplace to pay over time for what you need. Your order ships after your first payment, so you can get what you need without straining your budget.
4. Skipping a Budget or Spending Tracker
It's hard to know where your money goes without tracking it. A budget helps you see what you're spending and where you can cut back.
Budgeting apps make this easier than ever. Many let you track spending, set savings goals, and get financial tips, all in one place.
5. Putting Off Saving
Saving for retirement, an emergency, or even a summer vacation can feel like something to put off. But the sooner you start, the more time your money has to grow.
If you already have savings, try not to dip into them for everyday purchases. Withdrawing from a traditional IRA before age 59 usually means paying income tax plus a 10% early withdrawal penalty, with a few exceptions.
Start Small, Build Better Habits
You don't need to fix everything at once. Pick one habit to work on first, and build from there. Small, steady changes can help lead to a stronger financial future.
Ready to put one of these habits into action? See how Perpay can help
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