8 Toxic money habits leaving you broke and how to detox yourself

by Lynn

Bad money habits are lethal. Whether you have a savings plan, a debt management plan, or a budget your toxic money habits will derail whatever financial goals you have. Toxic money habits can be caused by a lack of money and financial management skills or you don’t know any better. 

Here are some of the toxic money habits leaving you broke: 

Retail Therapy 

Emotional spending is one of the very toxic money habits if it’s not controlled. A little retail therapy here and there is not bad but if it becomes a habit it will prevent you from reaching your financial goals. It can even get to the extent of bankruptcy or shopping addiction. 

FIX: There are circumstances where splurging would be necessary however, you need to control it. Identify your triggers and come up with alternatives or how to deal with your emotions so as to avoid splurging. Set aside some miscellaneous expenditure in your spending plan or budget just to give you some allowance.  

RELATED: Things you should be doing if you’re broke

Always picking up the check 

If you’re picking up the check at the expense of your bills and other financial goals and plans you’re going way overboard. Paying the check may give you a sense of pride at the moment but what happens if you’re still struggling to pay your bills? This is one of the toxic money habits you need to work on. Eventually, it even becomes harder to identify your true friends because maybe they just invite you out because they know you’ll pay 

FIX: ALWAYS GO DUTCH, whether you’re at a club or at a fancy restaurant. Let everyone pay what they have consumed because everyone has bills to pay and financial goals to achieve and you should not be in the business of pleasing people at your expense. 

RELATED: 10 ways to save money on a low income

No personal finance plan 

Do you have any financial goals in your life? Whether it’s saving for a house, paying up your mortgage, Paying off your debt, stop living paycheck to paycheck. If you have no financial goal or any financial plan in your life that in itself is a toxic money habit. 

FIX: If you have no plan just sit down and list what is important to you, paying bills, paying off your debt, or just increasing your savings and investments. After you identify what is important to you, make a plan, or a budget identifying how you’re going to achieve your goals.  

RELATED: 10 Smart ways of managing money as a single mom

Credit Card dependency

When you have a credit card  you have multiple ways to hurt your overall credit score, not to mention the high interest rates. The main risk of credit card dependency is that you could put yourself in credit card debt that may take years to repay. This affects your overall credit score and eventually lowers your credit score rating. Credit card dependency is a very toxic money habit because if websites automatically repay your payment method it’s so much easier to make unnecessary purchases.

FIX: Read the fine print on your credit card statement, terms, and conditions and decide if it’s all worth it. Ensure you understand the repayment structure, the fees, and interest rates on your card. There are 2 ways you can reduce your credit card dependency. You can stop using credit cards immediately and come up with a plan of debt repayment. Alternatively, you can do it by paying more than the minimum amount required and taking advantage of your existing rewards, and eventually transition into using a debit card.  

No investments or savings account 

The more you save at a younger age, the more wealth you accumulate as you grow older. Always make a habit of saving at least 20% of your income. Make sure it goes to a fixed account and access the funds only in times of a real emergency. 

FIX: Set up a standing order in order to automate your savings, or start investing so as to secure your future. Establish your savings goals and why you’re saving, this should motivate you every month to save. 

Not repaying your bills and debt on time 

If you don’t repay your bills and debt on time they will start accumulating interest and they will pile up and eventually you will be unable to pay lowering your credit score. 

FIX: Always pay up your debt on time and if you can repay in advance and avoid debt as much as you can. Utilize your bank’s bill payment function and pay your bills electronically and you can even choose to automate the payment. 

Lending money 

It’s always recommendable to offer a lending hand, always lending money to friends and family may hurt you in the long term. Let’s face it a better portion of the friends and family do not pay back the money eventually this leads to conflict and resentment. So at the end of the day, you don’t have your money and you’ve lost a friend or ruined your relationship with your family. 

FIX: If you lend money consider it a gift, this is to avoid future conflict. Alternatively stop lending money entirely, if you have a budget and a spending plan, stick to it. 


This is the habit of maintaining the status quo, keeping things as they are instead of changing or moving forward. This mindset is why most people are broke, you accept that is where you should be in life. It is very hard to break any habit if you have this mindset. 

FIX: Try as much as you can to change your mindset, it won’t be easy but it will be worthwhile. Always strive to be better, to do better and your habits will change. A change in bad habits leads to a change in life. Having a budget and setting goals is very vital. Automate your savings plan by setting up a standing order. 

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That Girl Everyday 8 Toxic money habits leaving you broke

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