5 Bad Financial Habits and How to Fix Them | Tom Orr Law

5 Bad Financial Habits and How to Fix Them

5 Bad Financial Habits and How to Fix Them

Money is an extremely important thing that everyone needs in life. However, money is extremely easy to lose track of and it can be very easy to owe more than you have. Here are five bad financial habits and how to fix them.

  1. Spending more money than you make:
    It is much easier to spend money than it is to make money. According to FINRA, studies show that less than half of the American population spends less than they earn. Roughly 38% break even and the remaining percent spends more. There is no easy way to fix this, but if you’re entirely committed there is a way. In many cases, the car payment or mortgage or rent payment may be too large. This could mean that you have to face downsizing to avoid spending more than you make.
  2. Not opening bills on time:
    It is critical to not let the pile of envelopes build on the corner of your kitchen counter. Avoiding bills can lead to even more financial problems. An easy solution for this is to tack your bills on a fridge or corkboard so you don’t forget to pay them on time. Don’t shove them in a drawer to be forgotten about.
  3. Not paying bills or loans on time:
    If you end up shoving the envelopes in a drawer and forget about them, then the chances of remembering to pay them on time can be slim. Not paying your bills or loans on time can heavily affect your credit score and future financial investments. Paying for things late results in even more fees. Creating a budget and time schedule of when money is coming in and out can help avoid late fees. Another option is to see a debt consolidation company to help.
  4. Not tracking expenses or keeping a budget:                                                  
    Even if you make a high income, it is very easy to spend money readily available to you. A budget can help keep you on track for your expenses and savings. Keep a list of all the expenses you make each billing cycle and create a plan of how much you will allow for each category. Some category examples are food, gas, miscellaneous. You are not able to budget some expenses like rent or a mortgage. But other things that vary from month to month are within your control.
  5. Using credit cards like free money:
    Credit cards can be a dangerous thing. More than often people pull out and swipe their plastic to buy everyday purchases. It is easy and allows you to spend on a whim. In 2015, the average American household had $15,762 on credit cards. The only solution to this is to strategically budget and plan your expenses or to simply cut up the card so you can’t use it.

Financial problems are sometimes the reason for debt and can result in your choice to file for bankruptcy. If you need an effective attorney for your bankruptcy case, please contact me.


Hundreds of thousands of Americans, including consumers and business owners, file for bankruptcy each year. While many think this situation is the result of overspending, most cases are due to financial hardship such as job loss, costly medical bills, divorce, or a poor economy.


I’ve been practicing bankruptcy law in Burlington, New Jersey for over 33 years. With just one location, I can focus exclusively on helping my clients make their way not only through bankruptcy, but well past it. We will work together to explore all of your options and determine if bankruptcy is the right choice for you. The goal is to get you on the path to a new beginning.


If you’re losing sleep, feeling scared or even embarrassed, let’s talk. There is life after bankruptcy and it starts here. My offices are located in downtown Burlington, near the Riverline train stop. I provide Saturday and evening hours as needed. I offer payment arrangements to fit your budget. Contact my office today at ​​609-386-8700.


Start your path towards a new financial beginning. Contact our offices today!
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