Everybody’s got a few bad habits: nail-biting, smoking, using your cell phone while driving…the list goes on and on. However, many people have developed awful financial habits, too. These are a little harder to notice in your day-to-day life, but over time, they definitely add up.

Here are four money habits that you need to break now to avoid damaging your financial future.

Taking High-Interest Loans

It doesn’t matter how much money you make: if you’re in debt, the money you make is not yours; technically it belongs to debtors and creditors.

Although credit and loans are a nearly unavoidable part of living in the world today, you should always do your best to avoid high interest loans like car title loans. Even if you’re absolutely certain that you can make the monthly payments, you’re still getting ripped off in the long run.

The fact is, most people who take high-interest loans, take them because they have bad credit. Sadly, this ends up being the proverbial “nail in the coffin” for many people who can’t pay back the outrageously high interest rates on their loans.

Using Credit Cards for Daily Purchases

Recent surveys have found that nearly half of young people today regularly use credit cards to purchase daily necessities like food, and even to pay bills.

While some people are able to use credit cards responsibly, others end up with a lot of debt, which only snowballs and gets worse over time. The “buy now and pay later” mentality is one of the most unhealthy financial attitudes you can have. It sets up a dangerous cycle of spending money you don’t have, digging deeper and deeper until you can’t see the sunlight.

This situation often arises as the result of bad budgeting. Sure, you may have a budget, but if you can’t stick to it, you might as well not have one at all. Set a realistic budget that allows you to pay all necessary bills (and hopefully save at least a little money, too). Even though it’s not as pleasant in the short term, you’ll thank yourself in a few months when the money you are making is truly yours again.

Not Saving Enough Money

You’ve probably seen plenty of statistics that say millennials don’t save enough money–however, what these statistics ignore is that there’s been an overall downward trend in savings for many years. Millennials were simply raised by a generation who wasn’t very good at saving either; fortunately, it’s never too late to get started.

You need at least a medium-sized emergency fund for “rainy days”. It’s okay to start small–set aside as much as you can from each paycheck, until you’re able to have $100, then $500, and eventually $1000+ worth of savings that you never touch.

Why Should You Take the Time to Break These Habits?

Changing a few bad financial habits might not seem like it would make much of a difference, but if you correct these simple bad behaviors, you’ll be on your way to a brighter financial future. We’re always here to answer any questions or comments you might have; let us know your concerns in the comment section below. Thanks for reading!