No one wants to be accused of being a bad money manager. Unfortunately, poor habits are far too easy to create. It is painfully simple to start living beyond your means. All it takes is an extra night out with your significant other each month, getting a membership at a nicer gym or upgrading your Netflix subscription. Life is great until you get the bills. Suddenly, you are struggling to make those necessary payments or eating ramen every night for dinner.
Ironically, the cause of your poor monetary habits could be a raise. A bigger paycheck can lessen the burden of keeping up with your bills, or it can trick you into thinking you have more money than you do. You start spending thoughtlessly because you believe you have money than you do. The extra couple thousand dollars a year you are now earning makes no difference if you waste it.
Poor money management habits are tied to more than just overspending. Living paycheck to paycheck, while sometimes necessary, is not an ideal situation. Bad monetary habits have the potential to keep you trapped in that cycle for a long time unless you make a change. Here are seven things people who are bad with money do and how to break those habits.