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Some of them still hold on to some bad, bad money habits.
According to experts, this is exactly what could derail a hard-won financial recovery.
Read on for a list of bad money habits that could hinder a financial recovery.
Also seeseven surprisingly easy-to-learn money habits that could help you save.
She noted that a lack of awareness about where money is going is the foundation of many financial setbacks.
Kevin Shahnazari, founder and CEO ofFinlyWealth, noted the same.
Making emotional purchases during stressful times derails budgets, he said.
Ive seen customers rack up thousands in credit card debt during difficult life events.
Creating a 24-hour rule for nonessential purchases helps prevent impulsive spending decisions.
That daily coffee habit often amounts to $300-plus monthly that could go toward debt repayment or savings.
Treating credit cards like extra income creates a dangerous debt spiral, he said.
Shahnazari has seen many bad credit habits firsthand.
This habit typically leads to carrying balances and paying hundreds in interest charges monthly, he said.
I always emphasize the importance of building a safety net before pursuing lifestyle upgrades.
Failing to build an emergency fund makes people vulnerable to debt, Shahnazari said.
Without savings, my customers often resort to high-interest credit cards or predatory loans when unexpected expenses arise.
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