The strategies and habits that lead to your personal financial success aren’t just comprised of big investments and down payments, but also of knowing which things to avoid. According to money expert and financial analyst Michela Allocca, a rising voice in personal finance, certain financial habits are major contributors to keeping people broke.
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She said, “Personal finance success is 10% strategy and 90% behavior. There are so many things you can do that are external of your income to help ensure you stay on the right path.”
So many money moves are positive, such as starting an emergency fund, diversifying your portfolio or maximizing your 401(k). However, keep reading to discover the five habits Allocca says you should break unless you want to stay broke.
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Not Keeping a Grocery List
If you are living paycheck to paycheck and spending every dollar you earn, there’s no room for impulse buying at checkout if you want to start saving.
Grocery shopping is inevitable, but Michela Allocca said it doesn’t have to derail your monthly budget. Keeping a grocery list is a great way to ensure you stick to your budget while shopping.
“Having a grocery list and shopping my pantry makes it so much easier to save money on food and not waste anything,” added Allocca. “It’s a simple habit that makes a big difference!”
Not Tracking Your Expenses
One of the most common mistakes people make is failing to create and stick to a budget. One of the biggest culprits in this is not tracking your expenses.
“You need to be doing this to know where your money is going,” she said.
Allocca stressed that budgeting is not about restriction but about clarity and control over your money. Without a clear plan, it’s easy to overspend and lose track of where your money is going.
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Signing Up For Shopping Email Lists
Credit cards are attached to so many accounts and digital platforms that spending money on something you see that pops up in an email can be too easy.
To avoid this, Allocca recommended not subscribing to or unsubscribing from shopping lists automatically sent to you.
“These are constantly sharing promotions and sales that can encourage shopping,” she warned.
Not Returning Things
Everyone has experienced buyers’ remorse at some point. You give into the impulse to buy that shiny, new item and moments later wind up regretting it.
Some of us, either due to laziness or inconvenience, choose not to return the item and just eat the cost. But this is money you could put toward your financial goals.
“I have a harsh rule,” said Allocca, “if I don’t absolutely love it, it goes back. Returning things can be annoying, but it’s necessary.”
Following Too Many Influencers
Unlike how it is for the rest of us, most influencers get stuff for free. One of the key lessons from Michela Allocca is that financial ignorance is expensive and being under the influence of trending people constantly trying to sell to you will drain your resources pretty quickly.
According to Allocca, the best way to avoid making these purchases is to unfollow or follow fewer influencers trying to subtly shake out the contents of your wallet through product placement or blatant sponsorship.
“If you’re following people who only post links/collages/sales/amazon stuff… unfollow them,” she added.
Final Take To GO
The bottom line is that breaking bad financial habits can set the stage for achieving financial goals, independence and freedom. It’s all about taking small, intentional steps toward saving, budgeting and investing while simultaneously avoiding the pitfalls of certain spending habits.
By shifting your mindset and adopting healthier choices, like the ones outlined by Allocca, you can break free from the cycle of living paycheck to paycheck and start building the wealth you deserve.
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This article originally appeared on GOBankingRates.com: 5 Financial Habits Keeping You Broke, According to Money Expert Michela Allocca
