The world is going through a recession period and bad money habits are more harmful now than they were before the COVID-19 pandemic. The effects of money misuse have far-reaching consequences and can be painful in the long term. 

Bad habits can however be broken, but the first step towards this is recognizing them. Here are some bad money habits to avoid.

Top Bad Money Habits You Should Break Today

Lack Of Or Failure To Stick To A Budget

Only about 25% of Americans have a form of a written budget (1). This is shocking since budgets ensure that you don’t spend more than you have to. 

Create a budget and stick to it so that you can have a financial plan for meeting your short-term and long-term goals. This will restrict impromptu spending especially on things that add no immediate & future value, or increases spending on set targets. 

Setting budgets also ensures that you have a way to monitor your spending.

Saving What Is Left After Spending

This is a bad idea especially for public employees with a fixed income. Save before you start spending!

Set aside a certain amount of money and automate the payments to your savings account so that you don’t miss payments. This also ensures you’re not tempted to use the money before you save. 

Not Paying Your Bills On Time

Lacking a schedule for bill payments might hurt your financial plans massively. Late fees might seem like small amounts, but if left to accumulate, the interest may add up to very high figures.

Maintaining a bill payment schedule and making all the payments for the month early enough can save you a lot of money by avoiding all the late fees. Ensure the amounts are written down and keep checking them to ensure that you don’t miss out on a payment.

Excessive Use Of Credit Cards

An average American had more than $5,000 in credit card debt in May 2020 (2). The ease and the convenience brought by the use of credit cards have led to excessive use of plastic money, leading to the accumulation of high debts. 

Credit cards come in handy in case of emergencies, so it’s difficult to completely avoid them. You can however follow basic recommendations like not carrying the cards around to avoid unnecessary purchases and paying the bill early can to avoid interest charges and curb your credit card expenses.

Lack Of An Emergency Fund

Life has a way of throwing you unexpected curveballs. Lack of money set aside to deal with these unforeseen events can set you back hundreds of dollars, compromising your plans, or getting you deep into debt.

Set aside money for emergencies to ensure your financial position is uncompromised in case they happen.

Top Bad Money Habits To Avoid Today

Everyone wants to attain financial freedom. However, This can only happen if you have a good financial plan and avoid habits that will get you into debt or decrease your savings power. 

Talk to one of our expert advisors about the  CalPATH Home Loan Program and how you can use your mortgage to increase your savings. 


About Mountain West Financial and the CalPATH Home Loan Program

Mountain West Financial is the exclusive lender offering CalPATH, the #1 home loan program for Teachers, Police Officers, Firefighters, and other public employees who serve our local California communities.

You may contact our CalPATH Hotline @ 800-310-7577, seven days a week from (8:30 am to 8:00 pm). A CalPATH advisor will be standing by to answer (any & all) questions you may have about the home buying or refinance process.

We look forward to working with you soon!


Joe Moore – Branch Manager

Links to sources used

  1.  12 Personal Finance Statistics to Know in 2020 – 
  2. COVID-19 Impact: Changes to Consumer Debt and Credit –