Break These Ten Spending Habits in 2009!

Most of us have some bad spending habits. Some of these bad habits may be obvious, but others may not be so apparent. These bad habits, however, may be limiting our ability to get out of debt. And in this shaky economy, we all need to strive to do better. As a result, we should take some time now to evaluate our spending.

Our Top Ten List of Bad Spending Habits

1. Smoking – There are many good reasons to stop smoking, besides the risk to your health. The average pack of cigarettes costs anywhere from $5.00 to $8.00. If you smoke a pack of cigarettes a day, you will likely spend $1,800 to $3,000, per year. This amount could be used to start an emergency fund or to start an IRA account, instead.

2. Starbucks – Everyone understands Starbuck’s ambiance. Starbucks, a magical place, causes non-coffee drinkers to enjoy an exotic cup of coffee. Nevertheless, if you are spending $4 to $5 per workday, at Starbucks, then you should consider franchise ownership.

3. Gambling – Are you spending $10, per day, on lottery tickets? Hopefully, you have chosen to live in a state that does not draw lottery numbers on Sunday. Otherwise, you are spending $70, per week, on lottery tickets. Yes, you can win $1,000,000 from one ticket, but you may never win even a small prize. By limiting your gambling habit, you can direct more of your money towards savings.

4. Shopping Sprees – You may think shopping sprees relieve stress. Unfortunately, your excessive shopping can turn into a bigger problem. How are you going to pay for unforeseen emergencies, such as brake repairs, new car tires or buying a new furnace, when you have already spent your savings at the mall? While you may enjoy the rush from shopping, you probably won’t be ecstatic when you need to pay the bill.

5. Vacations – Some people are able to spend a fortune on vacations. These individuals enjoy lavish hotels, first class airline tickets and the best restaurants. Sometimes, instead of planning one vacation for the entire family, these people may choose two vacation destinations since the children are not in school for the summer. Depending on where and what you do on vacation, the cost can be quite alarming.

6. Special Occasions – Christmas, Valentine’s Day, Mother’s Day and birthdays lead many to spend more than their budget can handle. The excitement over the occasion causes some individuals to pull out those credit cards or wads of cash to please everyone, except for their financial planners, at review time. The purchase of diamond rings and tennis bracelets may be symbols of love, but they also can lead to repossession of houses or cars, if individuals are not careful.

7. Excessive Credit Card Usage – You may be tempted to use your credit card at the grocery story. In the past, you probably have used your the credit card, but you should pay in cash or by using your bank debit card, unless you cannot afford the item. If you cannot afford to pay in cash or by debit card, you might consider leaving that item in the store. Therefore, you do not want to drown in credit card debt, for you could be paying the credit card bill with 25% interest attached. And if you are only making minimum payments, you can expect to be paying your credit card bill for a long period of time.

8. Clubbing – Some people live for the weekends. Individuals meet up with their friends to eat, to drink and to explore various clubs. Some people spend nearly $3,000, per year, on the weekends. For you math gurus, that figure is approximately $57.69, per weekend. It does not sound like a lot of money, but imagine if you earned interest on that money for thirty years, instead.

9. Expensive Dinning – You might enjoy the well-prepared meals served at a four star restaurant. Maybe you are trying to impress a love interest or to sway more business your way. However, you may not be comfortable spending $70 to $100, per week, on dinner dates. Instead, you probably need to find someone else to date or to entertain other potential clients.

10. Competitive Spending – Some individuals have to spend more than their neighbors, friends and family members. These individuals will not stop spending money, for they expect everyone to envy them. It is not uncommon for these individuals to purchase a new car, yearly, or to upgrade their home every three to five years. What a waste of money!

Hopefully, you are doing a good job of managing your finances. If not, you may want to look over this list again. If you find yourself performing any of these bad habits, which are listed above, then work hard to overcome these challenges; otherwise, it will be harder to save more of your income. Strive to become financially secure in 2009!