Yahoo Finance I Saved $1,000 a Month by Cutting Out These 2 Bad Habits
Personal finance is unique to everyone because we have different habits and lifestyles. While embracing frugality could be easy for one person who enjoys simple activities, it could be challenging for someone with expensive habits. There are also situations where we have a bad habit that we know we should change, but we never get around to it.
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We spoke to Josh Nesbitt, who said he saved over $1,000 per month by cutting out alcohol and dining out from his lifestyle. Josh and his wife, Nicole, decided to get serious about their fitness and finances by taking on a challenge requiring them to eliminate alcohol entirely and cut dining out.
See all of the bad habits that can leave you broke.
What Was the Cost of Dining Out?
Nesbitt was spending $90 to $120 on eating out (including alcohol), which he did up to three times per week. That added up to as much as $1,440 per month.
Nesbitt said he saved at least $1,000 monthly with this lifestyle change.
Many of us likely can relate to this because it’s tempting to go out for food or to rely on food delivery apps to handle our meals. We may not feel like it’s hurting us financially, but when you add up the costs, you usually find that it is eating away at your finances.
“I didn’t realize how much we were spending on eating our meals out until I ran the calculations,” he said.
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How Can You Cut Out a Bad Habit?
Personal finance isn’t just about numbers and statistics. Money management often involves behavioral change. Here are a few tips for working on the bad habits that are holding you back from saving.
Accept That You Have a Bad Habit
The first step is to accept that you’re guilty of holding on to bad money habits that are hurting you financially. It’s essential that you know a problem exists before you can attempt to tackle it.
Here are a few ways to figure out what your bad habits are:
Looking over your sending from the last 30 days.
Examine where you spent more money than you thought you did.
Highlight this problem area.
Have an Accountability Partner
It’s essential to accept and acknowledge that we can’t always take on bold goals on our own. It helps to have an accountability partner. In this example, it was easier for Nesbitt because his wife was also on board with making changes.
Your accountability partner could be a family member or even someone on social media from a group with like-minded people. It’s critical to find someone you can rely on to hold you accountable so you stay focused on your goal of fixing this bad habit.
Try a Challenge
“We decided to try the popular ’75 Hard’ fitness challenge where you have to get serious about your fitness and overhaul your entire lifestyle for 75 days,” Nesbitt said.
The challenge forced them to look at all of their habits. They realized they were eating out and drinking far too often. Because this fitness challenge forces you to prepare your meals and cut out alcohol, it makes you re-evaluate your daily habits.
Set a Bold Financial Goal
Sometimes you need a push that motivates you and excites you about trying to eliminate a bad habit. You could decide to save up for a down payment, plan for a dream vacation or make a plan to quit your job. One of the best ways to accelerate the process of reaching your financial goal would be to look at the bad habits hurting you financially.
Replace Bad Habits With New Activities
The Nesbitts look up recipes and prepare their own meals instead of relying on restaurants and dining out. The goal is to replace your bad habit with a new activity that would keep you busy and focused.
Here are a few examples of how you can swap a bad habit for a good one:
Instead of meeting your friends for drinks, try going to fitness classes.
Instead of dining out, look up new recipes to experiment with.
Find like-minded people by joining local groups so that your hobbies don’t cost you as much.
While eliminating a bad habit won’t always be a simple process, it’s important that you do your best to make positive changes. The journey won’t always be perfect, but you’ll be proud of yourself for making positive changes.
What Are Bad Habits Worth Cutting Out?
Money management isn’t about cutting all joy out of your life. It’s about figuring out how to save money while still creating memories and enjoying the present.
Here are a few habits you can control in order to save money:
Constantly dining out.
Impulse buying.
Gambling.
Instant gratification.
Going out too often.
Upgrading your lifestyle before you’re ready for it.
Financing your lifestyle with credit cards and debt.
You don’t have to try eliminating every bad habit at once, but it helps to be aware of what’s holding you back from reaching your financial goals.
Closing Thoughts
If you find yourself eating out too often, gambling or struggling with any kind of bad habits, it’s essential that you seek help and guidance. If you need to speak with a professional, look into possible resources.
If you feel you could tackle this issue on your own, find an accountability partner and set a financial goal for yourself. You’ll be pleasantly surprised by how much money you could save by eliminating one habit holding you back.
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