10 signs of bad spending habits & behaviours

Rates and Fees verified correct on December 10th, 2016

Are you guilty of two or more things on this list? Then it could be a sign of bad spending...

finder.com.au has released its list of Top 10 Signs You’re Bad With Money to help Aussies realise whether or not they have poor spending habits,

This list may help shed some light on common spending habits that you never knew you had and takes into account Australia’s worst spending habits or purchases.

Are you a bad spender?

There are two distinct types of bad spenders; bargain hunters and self-entitled spenders. Buying a product or a service because of a discount or because you think you’ve earned it does not imply that you actually need it.

Consumers should also know that it does not take long for a spending habit to catapult into a full blown problem and if you hope to remain in control of your finances down the line it is best that you take action now.

Top 10 signs that show you're bad with money

  • The amount you spend on takeaway and restaurants exceeds your grocery bill.
  • There are instances when you do not use daily deal vouchers before their expiry dates.
  • You use your new top-of-the-line iPad only to play games.
  • Your wardrobe includes clothes with tags that you’ve not removed, yet.
  • Every time you visit IKEA, you have to buy something.
  • If you buy something on sale you think you’re being cheap.
  • Credit card reward points interest you, but you don’t get around to paying credit card bills.
  • You own a ShamWow or Snuggy.
  • You bought an expensive steam mop because it included a free set of knives.
  • eBay rates you with a gold-star.

Taking action

Remember, you don’t have to say yes to all the points on this list to indicate that you have a spending problem. While splashing on an occasional dinner is alright, spending out of control and continuing to justify your purchases is definitely not. The good thing is spending habits are not hard to combat and what’s required is being conscious of your budget and knowing just where your money is going.

If you, like many others, wonder where all your money goes, you should consider keeping a track of every transaction using some kind of a budget planner. In doing so you may end up finding out that you spend money on something you don’t really need and your problem could be as trivial as using a wrong credit card. A number of reward cards, for example, tend to attract higher interest and annual fees and these outweigh the rewards you earn if you don’t pay off the balance in full every month or don’t spend enough.

If you think you’re a bad spender there is no reason to continue on the same path and taking effective action now would only help simplify your financial affairs for the future.

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2 Responses to 10 signs of bad spending habits & behaviours

  1. Default Gravatar
    sypho | May 10, 2014

    how do you tell when someone is swimming in debts especially a young person for instance a student

    • Staff
      Elizabeth | May 13, 2014

      Hi Sypho,

      Thanks for your question.

      There is no real one sure-fire way to tell if someone is ‘swimming in debts’ as people earn different money and are in different financial situations. It is difficult for a young person if they feel like they are in debt as they sometimes earn lower incomes or are only able to work part-time due to study commitments. One way to see a breakdown of your financial situation is to work out your budget, including your spending, debts and income, and see how long it might take you to get out of debt. We also have several pages on managing debts.

      If someone feels they really may be ‘swimming in debt’ then it would be best to contact a financial advisor or call a free debt counsellor.

      I hope this has helped.

      Thanks,

      Elizabeth

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