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  • Emily Friday

5 Habits That Could Be Hurting Your Finances

Getting into the habit of being ‘good’ with our money can take some time. We know that we should be saving our money, paying ourselves first, and potentially investing to increase our income.

But, if you find yourself still taking part in these unhealthy money habits, you could be hindering your progress!

Here are 5 habits that are more than likely hurting your finances:

1) Trying to look wealthy

You have a preoccupation with trying to look “wealthy”.

Wealth means something different to everyone - but if you’re fixated on how you outwardly appear to others, this can negatively impact your finances.

How, exactly? Well, if you’re constantly trying to keep up with the latest trends by buying only designer fashion and upgrading to the latest gadgets (even when your current iPhone model works just fine!), you may quickly find your bank account struggling to keep up.

2) Impulse spending

We’ve all been a victim of impulse spending before, but if it’s become a regular habit in your day-to-day life you could be in trouble!

Whether your first instinct is to open up the shopping tab to cope with any negative emotions you may be feeling or you’re consistently doing the grocery shop when hungry, these habits can take their toll over time. And ironically enough, the damage they inflict to our wallets ends up causing us more stress!

Top tip: Besides the obvious of making sure you go shopping on a full stomach, try to wait at least 1 week before making any impulse purchases - or 24 hours if that seems too challenging. Chances are you’ll realise you don’t really need that item once the feeling passes!

Read more here about the link between money and mental health.

3) Spending more than you earn

Frequently spending more than you earn is usually one of the biggest culprits in hurting your finances.

If you’re guilty of this, you’re always going to be in financial difficulty - which means falling into your overdraft or relying on credit card debt to see you through to the next payday. It can be a hard habit to beat, but as long as you have a budget, overspending can be controlled.

Conveniently, this brings us to our next habit…

4) Not having a budget

Whether you consider yourself good with money or not, a budget is an absolute must for people of all ages, professions, and backgrounds. And if you find yourself struggling with overspending, a budget is the first thing that will help curb this habit.

Budgeting helps ensure that all your bills are paid, you aren’t relying on debt, and allows you to identify where you’re perhaps spending a little too much money each month. Without one, you’ll no doubt find your finances quickly getting out of control!

Not sure where to start? Click here for our guide on how to create your first budget.

5) Not learning about money management

Last but not least, getting to grips with financial education is potentially the most important part of improving your financial situation.

For many of us, financial literacy was likely not part of our curriculum at school - which means many of us jumped into the adult world without any knowledge of taxes, budgeting, mortgages - you name it!

The good news is that it’s never too late to learn. There is a magnitude of resources and education out there - many of which are completely free - for you to learn more about effective money management.

We share a range of different tips and information across our Instagram and other blog posts, and Money Saving Expert has practically everything you need to know to achieve financial security.


Later this month, we’ll be releasing a guide on How to Unpack your Relationship with Money so that you can stop these habits for good and replace them with healthier alternatives. Follow us on Instagram so that you don’t miss out!


If you’re ready to start building better money habits, the ImageNPay app could help.

With your very own prepaid card, you can budget your money with ease and ensure you stop overspending for good. Tap the button below to find out more!


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