10 Spending Habits You Need To Stop RIGHT NOW

Seriously, you need to stop these habits right now!

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Chapters

00:00 Start Here
01:06 Waiting For Banks To Tell You When It’s Time To Stop Spending
02:17 Letting Banks Tell You How Much You Can Spend
03:33 Spending More Than You Make
04:34 Taking On Payments You Can’t Afford
05:26 Letting Your Life Revolve Around Your Stuff
06:32 Continuing To Make Bad Decisions When You're In A Bad Situation
07:27 Buying Wants When You’re Struggling To Pay For Needs
08:23 Going In Debt Over A Want
09:45 Waiting Until The Last Minute To Take Action
10:46 Making Decisions That Are Ruining Your Life

In this video, I explain 10 spending habits you need to stop right now because they are putting you in a bad financial situation.

1. Waiting For Banks To Tell You When It’s Time To Stop Spending

When people are spending too much money, they often wait until some higher authority steps in and tells them that it is time to stop spending. Maybe they reached their limit or are no longer approved for new loans. And it isn't until this moment that they make decisions to get in a better situation. If you are in the habit of waiting for banks to tell you to stop spending money, you need to stop it and determine for yourself when you should stop spending money.

2. Letting Banks Tell You How Much You Can Spend

Another toxic habit people have with money is letting banks tell them how much money they can spend. We often see this when it comes to buying a house where people are approved for a mortgage they can't afford, but choose to get a mortgage they can't afford because the bank approved them for a loan. If you are in the habit of letting banks tell you how much you can spend, you need to stop it and create your own budget of how much you can afford to spend.

3. Spending More Than You Make

In order to get ahead financially, you simply need to spend less than you're making. Many people, however, spend more than they are making, which puts them in a tough financial spot. Instead of spending more than you make, it is important to be in the habit of spending less and save or invest the difference.

4. Taking On Payments You Can’t Afford

Many people are in the habit of taking on payments they can't afford like getting a high car payment, which forces them in a bad financial situation of always being behind. Whenever you are deciding whether or not to take on a new expense, it is important to look at your budget to see if you can afford it.

5. Letting Your Life Revolve Around Your Stuff

Many people spend all their money on stuff and eventually their life revolves around their stuff where they have to focus a huge amount of time paying off debt and loans. It is important to be intentional when you spend your money and not go into debt for things because your life will eventually revolve around those things.

6. Continuing To Make Bad Decisions When You're In A Bad Situation

Many people who are in a bad situation continue to make bad financial decisions digging themselves in a deeper and deeper hole. If you are in a bad financial situation, then you should focus your energy on getting in a better situation instead of continuing to make bad decisions.

7. Buying Wants When You’re Struggling To Pay For Needs

Many people who are struggling to pay their bills and things they need, continue to make bad decisions prioritizing wants before needs. If you are in a bad financial situation, prioritize paying for all of your needs before spending money on wants.

8. Going In Debt Over A Want

Although I believe avoiding debt at all costs, there are some scenarios where it might be necessary like whether to go hungry or buy groceries with a credit card. Many people, however, choose to go in debt over a want like getting a new pair of shoes. Never go in debt for a want and instead save up for something until you can afford it.

9. Waiting Until The Last Minute To Take Action

Many expenses in life, we know far ahead of time that they are going to happen; however, many people choose to wait until the last minute to take action and end up behind on the expense. Give yourself time in advance to do something rather than waiting until the last minute.

10. Making Decisions That Are Ruining Your Life

The reason you should stop these spending habits is because the person that they end up harming the most is you. You shouldn't make bad financial decisions because they affect you more than anyone else and end up ruining your life. Instead, focus on making better decisions that allow you to do more things.

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[LaundryFaerie]

I'm the oldest of six siblings, and our dad died when I was 12. My mom moved us to another state after his death so she could afford to live on the salary she could make. We found a house we could afford, but we didn't have much furniture to put into it. For a couple of years after we moved in, my mother would proudly show visitors her empty dining room and show them exactly where the oak table, chairs, and corner hutch would be when she had saved up enough money to buy them. And buy them she did, when she finally had cash in hand. She did not go into debt, and she was able to raise all six of us on a teacher's salary because she was extremely careful with money.

[crazyadventuresandreviews]

Life is short when you stress your self with debt, you’ll end up with a heart attack

[SangTalksMoney]

Too many of us live on credit, spending more than we need, only to throw away the stuff we buy at the end of the month. Frugality is amazing!

[MarianaVHernandez]

Im a 28yo girl living by myself in crazy expensive Miami and I cannot tell you how much your videos have actually helped to change my mindset. I’ve never been in a "paycheck to paycheck" situation, however, pretty close to it at one point, until I realized I needed to change something. I’ve come across different creators who offer an almost unrealistic expectation of saving money, I love when you bring these real, actual problems and talk about it with such a down to earth tone. Thank you for what you do

[kortyEdna]

The financial sector and derivatives may have a Hindenburg moment if the US Treasury market collapses.Rising market illiquidity in the $14.8 trillion U.S. Treasury market, according to Bank of America, might affect other financial markets.

[DorathyJoy]

Managing money is different from accumulating wealth, and the lack of investment education in schools may explain why people struggle to maintain their financial gains. The examples you provided are relevant, and I personally benefited from the market crisis, as I embrace challenging times while others tend to avoid them. Well, at least my advisor does too, jokingly.

[pianotnt]

I stopped spending because I had 2 deaths in the family first my sister then last month my mom when i figured out that material things don't matter and you die and leave them behind material things meant even less I was depressed so I stopped spending

[georgeandrews]

Another is to not go to the mall for "entertainment".

[flohough]

When we decided to downsize our home, the bank couldn't understand it when we applied for our loan. "You could afford a much more expensive house." But we didn't want one! 🤦 I'm sure they were even more annoyed when we paid it off after we sold our other house LOL You also see with this with car loans, they will tell you what the monthly payment is as opposed to telling you what the actual price of the car is. And then if you can't afford it, they will modify the factors so you can...leaving some people with car loans for 6 years or more. Insanity.

[charliedurie]

I’m really glad I found your channel!! It’s been kind of a wake up. Call to me. I decided to really take inventory of my financial life and I discovered I need to make lots of improvements. Pretty good job and I contribute a 11% of my income to my 401(k) plan. I do have a savings account via Sofi Bank my credit score is pretty good in the mid-700s. But I realize I spent over $4000 on DoorDash food orders in 2023 which is completely insane so I made a decision for 2024 that I would not use DoorDash and I deleted it from my phone and so far so good and it’s helped me save tons of money so far. Also I would use my credit cards only for Christmas presents but this year I decided I’m not gonna do that. I’m going to save money in my SoFi account. Also I would upgrade my iPhone each year and take on about $400 in debt and I’ve decided I’m not gonna upgrade my phones anymore and only on special occasions. So I just want to say thank you for your channel and you are very entertaining and very educational!! Keep up the great work!!

[MichaelSorbello-yonl]

El Augustine's intros are getting more amusing all the time. Seriously; good, sound advice delivered in an interesting way
I'll continue to watch. Yes, common sense is out the window.

[andreaross]

I just started cooking at home more. I checked my bank statements and realized i spent way too much eating out. I will still go out to eat just not as much.

[TitaMomo]

This is so amazing! "Common sense" isn't that common. Once I showed my partner my credit card balances 0. And he was shocked to see I "didn't Have any money" i said I was worried for him to think having a balance means not to have money... Believe or not the men had a law degree... Yes, ignorance is that engrained.

[vincentleoni]

Im 35, i already know this stuff but i watch for entertainment. Good job nailing the topic brother 👍

[kimharris]

Glad I paid off all debt. Living below means, nice video.

[ricardojmestre]

Your channel is the proof that finance literacy videos don't have to be dry and boring. Thank you, El Agustín, que estés bien ❤

[autumnlaudato]

I love your channel so much. I'm a minimalist and a frugal spender. these videos are perfect for me

[videomgs]

Great common sense video Austin. I can already see the movie version staring Captain Obvious flying around the world to fight poor financial habits and rescue people from getting trapped in dept just in the nick of time!

[plappin]

Great video. Sadly I think it comes down to knowing how to delay gratification and being willing to do so: some people can and some people can't. Also I think people who feel deprived in general are more likely to splurge on a "want" -- perhaps their experience of life has taught them that it's better to live for the moment as tomorrow isn't guaranteed. I can see how people who grow up poor or who've experienced loss at an early age might feel this way.

[MSunhee]

Thank you for these videos!! They are so insightful. I feel like I sort of lucked out honestly because I didn’t even know that so many people lived that way. I can’t imagine the stress! I am 41 and a teacher have not spent a lot of energy or time in my life thinking about money and I guess I just “accidentally” avoided a lot of these issues. Your videos give me a lot to think about moving forward though.