Generally speaking, bad spending habits are anything that encourages you to spend beyond your means. However, even if you are not particularly in debt, a bad spending habit could be compromising your future financial health.
These habits can vary from something small, such as buying an expensive coffee every day to larger impulse purchases. To determine if something is a bad spending habit, take a serious look at how much you actually spend. Buying a fancy coffee every morning may not seem like much, but if you’re spending $3 every weekday, it adds up to $60 a month or a staggering $720 a year. So, if you’re struggling to budget and save for something, that seemingly innocent daily coffee is a bad habit.