8 Bad Money Habits That Are Keeping You Broke, According to ‘Reformed Shopaholic’ Christina Mychas

In today’s economy, finding some external force to blame for being broke is easy. Topics like inflation , unemployment and housing prices appear frequently in the news and on social media platforms. However, you are more in control of your financial fate than you may believe.

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Self-described “reformed shopaholic” and YouTube finance influencer Christina Mychas believes it’s bad money habits that are holding you back. Mychas admitted that she once was a shopaholic while struggling with $120,000 in student loans. However, by breaking some bad habits and revamping her relationship with money, she was able to fix her finances.

In a recent video , she detailed eight money habits that kept her broke and that you may need to stop doing, too.

Money mistakes the super wealthy never make - that you might be doing now.

Buying More Because It’s Cheap

Thrift shops and second-hand stores can be an excellent way to save some cash instead of buying brand-new clothes from the mall. Thrifting is becoming more popular, with purchases increasing by 12% over the past 10 years.

Be careful, though! Mychas pointed out that getting carried away is easy when the price is cheap. You may start with the intent of buying one or two items and end up overspending due to the low prices.

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Spending More Because You Earn More

You’re probably due for a celebration if you get a hard-earned raise. Between January 2020 and January 2024, average American wages rose by over 21%. However, the average personal savings dropped by about 47% at that time, according to MarketWatch. This shows that Americans are having an increasingly difficult time saving despite having more income. One reason is lifestyle creep.

With more money, it’s easier to up your lifestyle standards. A common problem among Americans is raising their standard of living whenever they make more money. Upgrading your housing situation, buying a new car or going out to eat more often because of a salary increase can keep you living paycheck to paycheck if you’re not careful. Maintaining your standard of living and saving, investing or paying off debt are better ways to use your excess income.

It’s not that you can’t upgrade your lifestyle, Mychas said. She just suggested doing it “slowly and mindfully.”

Spending for Your Fantasy Self

One of the biggest challenges for Mychas to get her finances back on track was to stop spending for her fantasy self. In the past, she used to buy things for the reality she wanted rather than the one she was living. Buying luxury clothes, shoes and accessories for the person you hope to become can leave you with many items that you rarely wear, as they aren’t practical in your everyday life.

There are some exceptions to this rule. Mychas pointed out that spending on gym clothes and memberships to get in better shape is one reason to spend on who you want to be. As long as you are putting in the effort to be your fantasy self in the future, it isn’t a bad spending habit — apart from just buying things to look the part.

Prioritizing Pleasure

Instant gratification is an enemy of your bank account. It’s human nature to chase pleasure, and for many, it can cause them to make unneeded purchases. Learning to tell yourself “no” and delaying gratification can help improve your finances.

Waiting to buy something doesn’t only help you buy fewer things. It helps you determine how much you actually want that item. If, after a few days, you stop thinking about making that purchase, it would’ve been a mistake to buy it in the first place.

If you have trouble with impulse buying, Mychas suggested making a wish list. This will help you remember the items that excited you and give you time to take a breath and decide if it’s worth it.

Spending To Save

Everyone likes saving money , but there are times when you might be deceiving yourself. Research done by CapitalOne Shopping revealed that 91% of Americans look for discounts before buying online.

Mychas explained that a common marketing tactic is discounting an item to make you believe it is a bargain. When you purchase some half-off shoes, you might feel like you’ve saved some money. In reality, you’ve just parted with money you didn’t have to spend. Remembering this when you’re shopping can help you resist buying just because something is on sale.

Agreeing to Everything

Events like dinners, trips, movies and drinks are a lot of fun and allow you to connect and socialize with family and friends. However, saying “yes” to every invitation that comes your way is expensive.

Mychas pointed out that when you say “yes” to everything, you’re saying “no” to financial goals. Finding a balance and learning to decline invitations you can’t afford or aren’t overly interested in can help you save a lot more.

Overusing Your Credit Card

Credit cards are popular tools for spending. Mychas said 61% of Americans have credit card debt that amounts to around $5,800 on average. For some, this is an income problem — they aren’t making enough to buy what they need and must depend on their card. However, for others, it’s a matter of not tracking your credit card use.

In the past, Mychas would use her credit card without keeping track of how much she could spend. She figured she’d just pay the balance with her next paycheck, but she often spent far more than she thought. To get out of this reckless cycle, Mychas learned how to budget, figured out exactly how much she could spend each month and stuck to her spending limits.

Forgetting To Pay Yourself First

When you get a paycheck, it’s easy to fall into the trap of not paying yourself first. Most people pay their monthly bills and rent right away and then go on to treat themselves and pay for other monthly needs over the month. Whatever they have left at the end of the month — which is often very little, if anything — goes into savings or toward investments.

Mychas suggested taking a set amount of your paycheck and putting it aside right away for savings or investments to improve your financial health.

With modern banking, you can automate the process of paying yourself first. Have a portion of your paycheck automatically routed into a savings account before you even have access to it to make it easier for you to save. And, as Mychas said, “It’s like you never even had that money to begin with,” so you don’t miss it.

This article originally appeared on GOBankingRates.com : 8 Bad Money Habits That Are Keeping You Broke, According to ‘Reformed Shopaholic’ Christina Mychas