Over time, you can start to develop some bad money habits. Unfortunately, not all of those habits may be healthy. Some bad habits, especially those that have to do with money, can cost you more than others. You may not even realize you’re engaging in not-so-stellar habits, making it that much more essential that you break them.

Here’s a look at common bad money, or better said, financial habits and tips on how to break your way free of them.

1. Failing To Pay Off Your Credit Card Debt in Full Each Month

By carrying a credit card balance, you’re essentially allowing a bad situation to curdle to something much worse. Carrying a high balance on your credit card can harm your financial health by negatively impacting your credit utilization ratio, which is the percentage of your total credit limit that you’re using.

A high credit utilization ratio can lower your credit score, making it harder to get loans or favorable interest rates in the future.

For example, if you have a credit card with a $10,000 limit and your credit card balance is $7,000, your credit utilization ratio is 70%, which is considered high. Ideally, you want to keep this ratio below 30% to maintain a healthy credit score. You can improve your credit score and financial standing by paying down your balance.

No matter how small your interest rate is, you’re still racking up debt that you don’t have to.

If you just aren’t in a place where you can easily pay off your credit card bill, do what you can to at least pay more than the minimum monthly amount.

Also, you can incorporate a snowball method, developed by financial expert Dave Ramsey, to prioritize paying your smallest debts first:

2. Not Saving for a Retirement Account

Even if your current employer sponsors a 401(k) plan, there’s nothing wrong with beefing up your retirement savings with an alternate savings account like a Roth or traditional IRA.

There’s no telling what the future holds in regards to programs like Social Security. Having access to supplemental financial resources during retirement could help you avoid running out of money during your golden years.

If possible, maximize your employer-sponsored plan, so you can take full advantage of the free money available to you. So how much should you aim for saving? It’s best to opt for anywhere between 10 and 15% of your pre-tax income.

3. Using Money in Your Emergency Fund

If you’re someone easily swayed by impulse buys, you may find yourself dipping into your savings account when you have no business doing so. While traditional savings accounts are a common choice, consider higher-yield options to maximize your emergency savings.

By unnecessarily depleting your savings, you’re doing your future self a disservice if a financial emergency shakes up your life.

You can curb this impulse by moving your emergency savings into a bank separate from the institution that handles your checking account. That way, you have a few more hoops to jump through before you can access your money, giving you time to rethink your decision.

Also, try to find a bank that offers high interest rates on your money.

4. Spending More Than You Earn

Before you buy your next cup of coffee, takeout dinner, pair of shoes, or any other nonessential purchases, ask yourself if you are falling into bad spending habits that will tip you over to spending more money than you earn, even if it’s just by a couple of dollars.

If your personal finances currently have more money going out than coming in, it is one of the biggest financial blunders you can make, as it can trip you up for months.

You can break this habit by giving yourself a cash allowance rather than using your card for anything not on your budget. When you’re out of cash, you’re no longer allowed to buy movie tickets, go out for drinks with friends, or the like.

5. Impulse Purchases and Bad Spending Habits

Speaking of nonessential purchases, one of the most common bad money habits, such purchases can also trip you up financially. No one can blame you for falling prey to impulse buys.

After all, marketing and advertising are designed to make you think you need to take advantage of a sale or discount now, now, now. True, you can most certainly save money buying something on sale, but the point is that you’re still spending money on something you may not even need.

To free yourself of this habit, force yourself to wait a day or two before buying anything that’s not on your budget.

Simply, count to 10 before you take money from your pocket to buy something impulsively. During that time, think and ask yourself the following questions:

1. Do you need the item or just want it?
2. How much will you use it?
3. Can you get it at a lower price elsewhere without sacrificing quality?

By answering these questions, you could avoid a healthy heaping of financial regret later on.

Simply, if you want to break your bad money habits, it’s crucial to recognize the triggers that lead to impulse purchases and develop strategies to avoid them. Some common triggers you can consider are the following:

• emotional spending, where you buy things only to improve your mood;
• sales and discounts that create a sense of urgency; and
• social influence, where friends or social media encourage you to spend money.

For example, you might find yourself purchasing items you don’t need after a stressful day at work, or you might be tempted to buy the latest gadget because everyone else seems to have it.

So, you must identify these triggers. Then, you can create a plan to pause and reflect before making a purchase, which will help you save money and improve your financial health in the long run.

6. No Saving With a Goal

Sure, it’s great to put back money in a savings account, but it’s even better to save with a goal in mind.

Why?

When you save with a specific goal, you want to reach it that much more and that much faster. Without a goal or a specific plan to reach that goal, you may drag your feet when it comes to putting money back.

Do you need emergency savings?

Perhaps you want to remodel your house or save up for a nice vacation. If you don’t really have a savings goal, just focus your saving efforts on retirement.

7. Using ATMs Outside of Your Network

To give yourself the cash allowance touched on above, you may visit an ATM to make a withdrawal.

Before you do that, first double-check to ensure the ATM is inside your bank’s current network. If it’s not, you’ll likely be charged a fee from the ATM’s owner. Even worse, your own bank may also charge you for using an out-of-network ATM.

Even if the fee isn’t terribly high, that’s still money you didn’t have to spend, money you could put into a savings or retirement account.

8. You Don’t Have a Budget and an Emergency Fund

One of the most crucial steps to achieving financial health is creating a budget and establishing an emergency fund. At the same time, it is also a habit that you must put on your list to break bad money habits.

A budget acts as a roadmap for your finances, helping you understand how much money you have coming in and going out each month. So, the budget is something that will help you track your income and expenses, so you can identify specific areas where you might be overspending and then make habit changes accordingly.

An emergency fund, on the other hand, serves as a financial safety net, or like I want to call it “buffer”.

Why is such a fund important?

It is important because life is full of unexpected events, from medical emergencies to car repairs, and having such a fund ensures you’re prepared for these surprises without impacting your financial stability.

So, aim to save at least three to six months’ worth of living expenses in your emergency fund. In such a way, you can handle unexpected costs without having to start using your credit card debt or going into your long-term savings.

Related: 9 Personal Finance Tips Everyone Should Hear

9. Not Researching and Comparing Financial Institutions

Picking the right bank is key to your personal finance health. With so many banks and credit unions out there, choosing the right one for you can be overwhelming. However, taking the time to research and compare can pay off in the long run.

Consider fees, interest rates and services. Some banks charge more for account maintenance or ATM usage, others offer better interest rates on savings accounts.

Also look into the customer service and branch locations or online banking. By evaluating your options you can find a bank that fits your financial goals and saves you money in the process.

Do you see yourself in the above habits? If so, do yourself a favor and take action to break them. By incorporating these habits into your financial routine, you will set yourself up for a more secure financial future. It will pay you back for years to come.