13 Money Habits to Break on Friday the 13th
It’s Friday the 13th. Are you feeling a bit more cautious or scared? The fear of Friday the 13th is called “friggatriskaidekaphobia.” Trying to say friggatriskaidekaphobia 13 times, I’d be scared too.
I’m not a superstitious person. I don’t have any negative associations with Friday the 13th or the number 13 in general. However, the number 13 is known to some as an unlucky number, and having the 13th day fall on a Friday makes some avoid stepping on cracks in fear it’ll break their “mother’s back.”
Instead of breaking your momma’s back, let’s break some bad money habits.
Here are 13 bad money habits to break on Friday the 13th.
1. Checking your credit report only after applying for credit
Have you been turned down for financing? Your credit score is a reflection of the information on your credit report. Everyone should check their credit report once a year through AnnualCreditReport.com and verify the accuracy of the information.
Tip: Review your credit report before applying for credit or financing. Use a free credit monitoring service to check your score.
2. Reviewing your bank account only on payday
If you only check your balances on payday, you’ll have a harder time understanding your spending habits and managing your money. Instead, use a personal financial management or budgeting app to help you monitor your expenses.
Tip: Review your accounts frequently using expense tracking tools that offer you notifications, text alerts, and the ability to view your latest transactions. Check with your bank or credit union, as most offer a tool to do these things.
3. Depositing your paycheck
Direct deposit makes it easier for you to access your money on payday. If you’re worried about bank glitches, imagine how long it takes to get a replacement paycheck for the lost one. Waiting to get a physical paycheck means you’ll find yourself driving to the bank, waiting in line, and, in some cases, waiting a couple of days before it clears.
Tip: Set up direct deposit with your employer to make your life easier. Increasingly, many credit unions and neo-banks offer early paydays, too. You can get your paycheck two days earlier, which can help you improve your cash flow.
4. Swiping your debit card mindlessly
While waiting in line at the cashier, I’ve heard people say, “I don’t understand. I had enough money. What do you mean it didn’t go through?” So, it’s important to break that money habit of not checking your available balance before using the card.
Tip: Have a budget to allocate your money to what matters to you. With a budget, you’ll know how much you can spend after your bills have been paid.
5. Withdrawing money at out-of-network ATMs
ATM fees can add up. How many fees have you paid because you withdrew money out-of-network and paid an ATM surcharge fee? A friend checked his bank statement and realized he paid $390 in ATM surcharges in one year. That meant he visited an out-of-network ATM 7 times a week.
Tip: Plan by withdrawing the cash you need for the week. Find surcharge-free ATMs through your banking app. For more options, consider having another account with a credit union offering a network of thousands of CO-OP ATMs.
6. Writing a check to pay utilities
You might feel in control by writing checks. However, if you wait until the last minute to send a check, you risk the chance of late payment and get hit with a fee. You can access many of your billing statements with online bill pay features. This makes it easy to schedule your payments ahead of time and have a check or electronic transfer done on the date you specified.
Tip: Ask your financial institution about online bill pay services. Set up your account and make paying your bills easier. Need another tip? Set up bill alerts.
7. Carrying a credit card balance month-to-month
Keeping a balance on your credit card from month to month does not improve your credit score. In fact, it has the opposite impact. Credit scores look at your revolving credit utilization, meaning it’s calculating the outstanding credit balance against your credit limits. Getting close to your limit? It can mean a lower credit score.
Tip: Pay off your balances in full each month. The only benefit of carrying a balance is for the creditor. If you’re carrying a balance now and unable to pay off the unsecured debt, follow a credit card debt payoff strategy.
8. Reacting when it comes to money situations
Respond to your financial situation, not react to them. Your financial situation is often a result of your actions. Reach out to your creditors and billers to find a resolution. Don’t wait to be on the receiving end of collection calls.
Tip: Be proactive. Call your creditor and learn about your options when you believe you cannot pay a loan. A budget is the best tool for an overview of your finances. Learn how to budget your money.
9. Buying extended warranties on everything
It’s not necessary to add extended warranties on most purchases. If a gadget has a defect, it will most likely break within the limited warranty period. Additionally, many credit cards automatically offer extended warranties when you use the card for specific items.
Tip: Analyze the item’s cost with the warranty price. Do your research. If you buy an extended warranty, ensure it covers what you expect, as most warranties will not cover failure due to normal wear and tear.
10. Tipping way above your means
This is a hot-button issue for many. There are services where tipping becomes mandatory because the business owner does not pay their employees a standard minimum wage. However, you should not feel compelled to tip above your means. Tipping is for services rendered (to your satisfaction or dissatisfaction). It would be best if you tipped, but tip appropriately.
Tip: Tipping is between 10% and 20%. Check your bill to make sure the tip was not already included. Use the pre-tax amount for your tipping.
11. Splitting the check evenly when dining out
It might seem easier to split the bill evenly when dining with others. That’s okay if the meals are of equal value. But if you split the bill every time you dine out, you’re losing money you can use for other purposes, like funding an emergency fund or investing.
Tip: You can split the bill occasionally. But practice being okay telling family and friends that you will only be paying for the food and drinks you actually purchased. It’s easier to grab the bill when it arrives, do your calculations (remember to include taxes and tip), and tell everyone how much you owe.
12. Paying full price for everything you buy
There is absolutely nothing embarrassing about using coupons or asking for a discount. I once purchased a suit at Macy’s, and the cashier gave me an additional 20% off at the register. The less you spend on items, the more money you get to keep.
Tip: Before making any purchase, look for coupons, online codes, rebates, or other cash-back offers. Ask for discounts at the register. You can save by using cashback portals like Rakuten. You could also stack the savings by using a cashback credit or debit card for the purchase. Find more cashback apps here.
13. Playing the lottery
The lottery is not your path to retirement and wealth. The odds of winning the lottery are astronomical. You’ll likely get hit with lightning (a 1 in 161,000 chance) than winning the Powerball (1 in 292 million). No matter how many times you play the lottery, it does not increase your chances of winning. Your “turn at winning” is as mythical as Friday the 13th.
Tip: Plan for your retirement. Small amounts can add up to big savings for your future. Make sure you’re contributing to your company’s retirement plan and then open a taxable brokerage account to invest using Roth IRAs. You can find the best online brokerages on phroogal.com.
What other bad money habits are you ready to break on Friday the 13th?
