Bad spending habits

*Never ever set a budget that is too strict!!Like a super-strict diet, a super-strict budget will eventually lead you to “cheat.” Start by cutting back in one area such as food shopping. 

*Stop Only using the coupons from the Sunday paper. The best price reductions are online, sign up with social networking sites, like Facebook and Twitter. Search for your favorite stores, then click “Like” to get updates on their sales and promotions. You never know what savings you might come across. For example, Old Navy recently shared a 20 percent discount code and Target offered a coupon code for 15 percent off:both via Facebook.

*Buying brand-new when there are less expensive options to be had. Free is always better!The days of heading to a store when you need something are over thanks to three big game-changers: the green movement, the economy and the Internet. Motivated by Mother Nature and/or saving money, people have being using the Web to barter, trade and even give away items they don't want anymore.

* Do not Ignore your credit score. If you don’t keep tabs on your credit score, you could be in for a rude awakening. Log on to AnnualCreditReport.com for a free credit report. Understanding your credit report will help you make better money management choices. Review your report for errors and have them resolved as soon as possible. Take note of your debt-to-available-credit ratio; if you have $20,000 in credit, you should have no more than $10,000 in debt. Cancel cards you don’t use, especially those that charge annual or monthly fees.

*Not having basic financial knowledge is a very bad habit to have. What you don’t know can hurt you. If you don’t know how to tackle your debt or invest your savings, and ignore either rather than take action: you could wind up costing yourself thousands upon thousands of dollars. Take a basic finance course at a local community college, which should give you a solid financial foundation.

*“Hoarding” money in your savings account. Big NO NO You’re not maximizing your earnings if all your money’s sitting in a savings account that earns 1 percent interest or less! Having enough cash to cover your living expenses is always important.You should be investing in order to maximize your earnings. Most people are focused on short-term survival when they need to be thinking about long-term success. Even the most conservative investments will pay more than a savings account over time.

*Carrying a balance on department store credit cards. The cons outweigh the pros when you only make minimum payments. It’s easy to get enticed by a 20 percent instant discount when you’re standing at the register, but you’ll pay for that savings several times over if you carry a balance on a department store card; most have higher-than-average interest rates: some as high as 25 percent! Also, frequently opening credit card accounts can hurt your score. Make sure to pay off balances in full, or better yet, just say no! 

*Not having a household budget. You and your partner will be more likely to fight about money if you don’t have clearly defined rules for saving and spending. Having a budget in place will help you plan better, Sit down with your partner and come to an agreement about your spending goals, such as buying a home, and saving strategies, like discussing any purchase over $100.

*Making purchases based on convenience. You’ll spend two, three, even four times as much on common household items when you make a last-minute dash instead of planning ahead. Don’t buy household items like paper towels or toilet paper by the single roll; instead, buy in bulk at a discount club or stock up when there’s a sale at your supermarkets.