We all have those things that make our skin crawl—those financial habits or situations that just don’t sit right. For me, it’s the “ick” list of debt-related behaviors and mindsets that remind me why I never want to go back to that overwhelming place of financial stress.
Here’s my Financial ick list, along with some ways you can avoid these mistakes and build a healthier, debt-free future.
1. The “Just One More Purchase” Trap
There’s a moment when the thrill of shopping takes over, and you tell yourself, “Just one more thing won’t hurt.” But then it’s a slippery slope. That “one more thing” becomes a weekly habit, and next thing you know, you’re drowning in a sea of impulse buys. It’s not just the purchases, but the mindset of I deserve it that keeps you stuck in debt.
How you can avoid it:
- Wait 24 hours before making non-essential purchases.
- Set a budget and stick to it—know what’s truly worth your money.
2. Buying on Credit Instead of Saving
One of my biggest financial icks is watching people charge purchases they can’t afford. When you buy things on credit, you’re essentially borrowing against your future income. Every time you swipe that card, you’re digging a deeper hole of debt.
How you can avoid it:
- Save up for big purchases—no matter how long it takes.
- Use cash or debit for everyday expenses to avoid credit card temptation.
3. Neglecting Emergency Savings
It’s easy to put off saving for a rainy day, especially when it feels like your paycheck is always stretched too thin. But emergencies happen, and when you don’t have an emergency fund, you’re more likely to go into debt to handle those unexpected costs.
How you can avoid it:
- Start small—set a goal to save $500 for an emergency fund, then build from there.
- Automate your savings by setting up a direct deposit to a separate account.
4. Letting Your Debt Snowball Get Out of Control
This one gets me every time. When you let debt sit without tackling it, it grows—quickly. High-interest rates, late fees, and rising balances all contribute to your financial stress. Debt can quickly turn into a monster if you let it pile up.
How you can avoid it:
- Create a debt repayment plan. Use the Debt Snowball or Debt Avalanche methods to get focused.
- Pay either your lowest balance or highest-interest debt first, and celebrate each win as you move forward.
5. Not Understanding the True Cost of “Buy Now, Pay Later”
Buy Now, Pay Later (BNPL) services are everywhere, making it tempting to shop without thinking about the future cost. But in reality, you’re not just paying for your item—you’re paying for the privilege of using your credit at the cost of interest and sometimes late fees. The BNPL option doesn’t always help you avoid debt—it creates more of it.
How you can avoid it:
- Consider the full cost of purchases before choosing a BNPL option.
- Try to buy only what you can afford right now, without relying on payment plans.
6. Living Beyond Your Means
Keeping up with the Joneses is one of the most dangerous traps in today’s society. Social media doesn’t help—showcasing endless vacations, designer bags, and fancy dinners. But trying to match others’ lifestyles without the means to do so will leave you broke and burdened with debt.
How you can avoid it:
- Create a budget that aligns with your income—don’t live above your means.
- Learn to embrace your own version of success, not someone else’s.
7. Ignoring Your Credit Report
Your credit report is a snapshot of your financial health. But when people avoid looking at their credit report or ignore errors on it, they’re setting themselves up for surprises—like higher interest rates, or even home loan denials—later on.
How you can avoid it:
- Check your credit report regularly (you can get one free report annually from the three major bureaus).
- Dispute any inaccuracies immediately to keep your credit in good standing.
8. Believing That Debt Is a Part of Life
A common myth is that everyone has debt and that it’s just part of life. Sure, credit cards and loans are a normal part of the financial system, but living with debt should never feel normal. There are ways to live without it—and once you experience a life free from the burden of debt, you’ll never want to go back.
How you can avoid it:
- Make a commitment to debt freedom. Start by getting clear on your finances and create a plan.
- Read up on methods for debt repayment like the Debt Snowball or Debt Avalanche to find what works best for you.
9. Avoiding the Financial Conversation
Whether it’s because of shame or feeling overwhelmed, many people avoid discussing money—especially debt—with their partners. This can lead to tension, miscommunication, and more financial problems down the road. Money should be a conversation you’re having regularly to stay aligned with your goals.
How you can avoid it:
- Have open, honest conversations with your partner about your financial goals and challenges.
- Get on the same page about budgeting and debt repayment.
10. Not Planning for the Future
Lastly, ignoring long-term goals or retirement savings is one of the worst financial habits. It’s easy to focus only on today’s expenses, but neglecting the future will leave you unprepared when you need it most.
How you can avoid it:
- Start a retirement fund (even if it’s a small amount).
- Set financial goals that include saving for the future as well as tackling debt.
Final Thoughts
There are plenty of financial habits that can put us in a bad place if we let them—unwise purchases, avoiding savings, and letting debt snowball are just a few examples. But the good news is, you can break these habits and start building a better financial future. It’s about taking small steps, being patient, and staying focused on your goals.
If any of these “icks” hit a little too close to home, don’t worry! You can change your financial story. Start by creating a plan, sticking to your budget, and taking control of your money. You’ve got this!
