4 Bad Money Habits To Ditch in 2026
Written by
Cindy Lamothe
Edited by
Cory Dudak
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A fresh year brings fresh opportunities to get your finances in shape. Whether you’re trying to save more, spend smarter or simply feel more confident about where your money’s going, letting go of a few bad habits can make all the difference.
The good news? You don’t need to overhaul your entire lifestyle to see real progress. By recognizing what’s holding you back and making a few intentional tweaks, you can set yourself up for a more balanced and stress-free year with your money.
Here are the bad money habits to finally ditch in 2026 — and how to replace them with smarter ones that actually stick.
1. Setting Goals Without Building Supportive Habits
“Goals are easy to write down, but habits are what make them real,” said Dr. Brittany Greene, Head of Community at Self Financial. Instead of focusing only on the finish line, she recommended honing in on the actions that get you there and a way to start enjoying the process rather than dreading it. “This can keep you committed,” she explained
Track your spending weekly, set up reminders for payments, and build a routine around reviewing your finances that actually feels rewarding. For example, you could put on your favorite playlist and curate a calming vibe, go sit at a quiet coffee shop, or have a challenge with a friend.
“Consistency, not intensity, creates progress,” noted Greene. When you repeat small habits over time, you strengthen your financial muscle and see lasting results.
2. Maxing Out Credit Cards
According to TransUnion, the average credit card debt per American in July 2025 was $6,492. “High credit card utilization, or using too much of your available limit, can hurt your credit score and make it harder to recover from emergencies,” said Greene.
Aim to use less than 10% of your limit when possible, and pay down balances regularly instead of carrying them month to month. If your cards are already maxed out, Greene suggested using the snowball method.
“You could start by paying off the card with the smallest balance, while making minimum payments on the rest.” Once that balance is gone, roll what you were paying into the next smallest balance. This could help you build momentum and see progress faster.
3. Relying on Payday Loans for Short-Term Relief
“High fees and triple-digit interest rates can trap people in a debt cycle that drains cash flow instead of building credit,” said Greene. If you find yourself needing extra money between paychecks, look for transparent, low-cost options that don’t charge interest or impact your credit.
Some financial tools now offer small, short-term cash advances with clear repayment terms, helping you cover an immediate need while staying on track toward long-term financial stability.
4. Operating on Autopilot Without Regular Check-Ins
“Too many people only look at their finances when something goes wrong,” said Greene. She advised making financial awareness a routine instead of a reaction. Set a weekly or biweekly money check-in to review your accounts, spending and upcoming bills.
“When you treat your finances like any other part of your wellness, with small, consistent checkups, you can course-correct quickly and make intentional choices instead of emotional ones.”
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