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Having bad money habits in 2022 can strip you of all your savings especially with an economy ironically as good as ours. No kidding with an increase in the standard of living coupled with the financial Illetracy of some individuals, going broke is inevitable. Worse case scenario, most of these individuals don’t even know what is wrong, they repeat the same mistake every single time while expecting changes in their finances.

If you are wondering why your finances keep dwindling, it’s no magic or witchcraft, it’s as a result of your habits or decisions you’ve probably made. Interested in knowing some of those habits that are currently digging a hole in ur pockets? Read on!

Old habits die hard, especially bad money habits. If you find yourself with no savings and spending more money than you earn and probably going broke, it’s time to drop those bad spending habits and start working towards better financial habits. Building good money habits can increase wealth and set you up for financial success. It will help you learn how to budget, save money, and work towards your financial goals.

Bad money habits include;

1. Impulsive spending.

All those goodies beautifully displayed in the checkout line aren’t by mistake. This is a retail tactic to get you to spend more money before you leave the store. Impulse purchases add up quickly giving you the illusion that buying it won’t make a difference, it’s just a few bucks but a closer look and calculation of all your impulse buys will leave you in awe.

2. Living above your paycheck

One of the worst habits you can develop is to live above your means. Living above your paycheck can quickly help you go broke ..Living a frugal lifestyle may seem challenging, but you’d be surprised how much money you will save by even small lifestyle adjustments. Simple changes in your spending habits such as couponing, purchasing pre-owned vs. new, can go a long way in saving your finances.

3. Spending without a budget.

A budget will help you manage your money successfully. Budgeting helps you pay your bills on time, build wealth by saving, and prevent financial mistakes.

now imagine spending without a plan or budget, you end up spending extra and buying things you probably don’t even need.

4. borrowing.

borrowing puts you at the mercy of your lender not condemning it but it should be a last resort, not borrowing to shop online or even shop irrelevant things that probably can’t pay for itself.

5. Waiting till you “have more money” to save or invest


You know the way they say “If you don’t learn to give N100, you would never be able to give N100,000”; it’s the same with saving and investing. Do not wait to “have more” before you start saving and investing because these two grow over time thanks to the power of compound interest. Thankfully, you don’t to be a finance expert to start, you can simply use cozysignals to begin your short and long term savings and investment plans.

6. Dipping into your savings

Al you can’t grow wealth if you keep dipping into your savings. Not having the discipline to save will adversely affect your plan to build wealth. Once you set up savings towards a goal, keep your hands off of the savings till you achieve your goal. To keep you guided, you can create 3, 6, 9 or 12 months goals or more. That way you can focus and achieve a lot more.


Breaking bad habits and cultivating new ones cannot happen in a flash. However, with discipline and the right information, you can begin to adjust and imbibe better money habits that will lead to financial success.

Here are good money habits you should begin to imbibe right now.

  1. Start and maintain an Emergency Fund.
  2. Create and stick to a budget.
  3. Document your daily/weekly/monthly expenses so you can measure and tweak your money leaks.
  4. Pay yourself first by saving a portion of your income every month or every week (depending on how you earn)
  5. Save to invest, do not save to spend
  6. Start and stick to your savings and investment plans.
  7. Pay off all your debt.
  8. Diversify your investment portfolio between low, medium and high risk.