Money Habits to Leave Behind This February

Money Habits to Leave Behind This February

February is often seen as a month for fresh beginnings. The resolutions song and dance might still be echoing into this short month before we step into the warmth of spring. One area ripe for review each year is our financial habits. I think back to my own journey—yes, the one where I stared forlornly at my bank account, wondering how my grand financial dreams matched up to reality. Spoiler alert: they didn’t. This month, let’s take a friendly walk down the lane of money habits you and I might want to rethink.

1. Procrastinating Financial Planning

We all have that one drawer, right? The one where receipts, unopened credit card statements, and bank notifications go to die? I, for one, was notorious for shoving off financial planning to “next Monday.” Sounds familiar? This habit of procrastination is one of the first that should go.

By delaying planning, we're not just stalling; we're missing out on opportunities for growth and savings. According to a study by the National Endowment for Financial Education, setting financial goals is linked to higher levels of financial satisfaction. So, break up the big tasks. Spend a few minutes each week reviewing your finances.

Tips to Break the Habit

• Set Specific Days: Designate a specific day each week for financial check-ins. I call mine "Money Mondays."
• Use Tools: Apps like Mint or YNAB (You Need A Budget) automate budget-tracking, making the process less tedious.

2. Impulse Spending

Walking through a store—whether Target or the local grocery—is always a struggle not to pick up that adorable mug or the newest bestseller. I’m guilty of a “therapy run” or five. But here's my reality check: each impulse buy adds up. In fact, individuals spend on average 20% of their annual income on impulse purchases.

Action Steps:

• The 24-Hour Rule: If the impulse strikes, wait a day. Often, the urge leaves once you’ve slept on it.
• Lists Save Lives: Carry a shopping list, and stick to it. My list is more powerful than any Jedi mind trick.

3. Overlooking Small Expenses

Ever heard of death by a thousand cuts? Sometimes that's exactly what daily lattes or endless online subscriptions feel like. I was shocked to discover $20 to $30 slipping away monthly on things I didn't even remember subscribing to!

Trim the Fat:

• Audit Your Subscriptions: Regularly check subscriptions and cancel those not in active use.
• Budget Coffee Runs: Allow room for a few coffees but stick to a strict overall budget.

4. Avoiding Financial Conversations

Money talk can often feel like a tightrope walk over a pit of socially awkward quicksand. For the longest time, I avoided money conversations with family and friends until I realized this lack of communication was hurting me financially.

Open Dialogue:

• Share Goals with a Trusted Friend: It’s not about judgment but accountability. Friends can provide great insights or spot where you might be going astray.
• Professional Guidance: Consider seeing a financial advisor. They're not just for those rolling in dough.

5. Ignoring Emergency Funds

Remember that old adage, "saving for a rainy day"? Turns out, it's solid advice. I used to prioritize dining out or vacations over building an emergency fund until a hefty car repair bill arrived. Having that emergency fund would’ve made the difference.

Building a Fund:

• Start Small: Aim for $1,000 initially, then build to three to six months of living expenses.
• Automatic Transfers: Schedule automatic transfers to a savings account dedicated solely to emergencies.

Real-Life Receipts

1. Weekly “No-Spend” Day: My favorite experiment is choosing one day a week where I spend no money, no matter what.
2. Subscription Cleanse Month: Every February, I skip certain subscriptions and reroute that money straight into savings.
3. Impulse List: Keep a list of things you've wanted to buy. If it's still a "must-have" by month's end, consider purchasing.
4. Accountability Partner: A friend and I share our savings goals each year. Knowing she’ll ask about it keeps me motivated.

6. Living Without a Budget

My financial life before a budget was like sailing without a map. According to the U.S. Bank, only 41% of Americans use a budget. Without a budget, I often wandered into financial quicksand, unsure of how I got there.

Budget Building Steps:

• Choose a Method: Explore budget methods like the 50/30/20 rule—needs, wants, and savings/debt.
• Review Regularly: Make budgeting a routine, complete with calendar reminders.

7. Skipping Regular Savings

Many of us have that inner dialogue: “I’ll save next time.” Yet, regularly skipping savings deposits contributes to financial insecurity and stress. I know because it stressed me out, too!

Consistent Habits:

• Direct Deposits: Have a part of your paycheck split and directly deposited into a savings account.
• Round-Up Programs: Banks and apps offer round-up savings based on your transaction amounts.

Conclusion

As February sweeps us closer to spring, it offers an honest chance to shed habits that aren’t blooming in our favor. Reassessing the way we deal with money is not just about seeing numbers multiply, but about nurturing peace of mind and future security. In our pursuit of smarter financial decisions, it’s about finding what daily practices add up to the victories we hoped to achieve last year—and still might, with a new dataset of lessons learned. Let’s leave behind what didn’t work with a promise to ourselves to be better, more informed money mavens.

Approach your financial goals with humor, determination, and a splash of vulnerability—we’re in it together!