Personal finance gurus Rachel Cruze and George Kamel recently released a video about things to stop doing with your money in 2025. In the video, they covered some key bad money habits people often fall victim to, many of which require some degree of work to break.
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If you want to improve your own financial habits and start 2025 right, here’s what Cruze and Kamel suggest you stop doing right now.
Also see 10 frugal habits to start now for a full emergency fund in 2025.
Putting Your Financial Goals Aside
If you’ve been putting your financial goals on the back burner, it’s time to make a change. Don’t wait to do something good for your finances. Do it as soon as you can.
According to Kamel, people often say, “I’ll just do it next year, I’ll get to that later or I’ll save when I’m older.” But this can be problematic since, in most cases, working toward and achieving those goals takes time. The longer you wait to get started, the harder it is to get to where you need to be.
Find Out: I’m a Financial Advisor: 10 Most Awesome Things You Can Do for Your Finances in 2025
Not Knowing What’s in Your Bank Account
Cruze pointed out that many people don’t really know what’s actually in their bank account when making a purchase. This ties in to the concept that ignorance is bliss, but it’s a problem when the money simply isn’t there — or should have been saved for something more important.
Kamel gave the example of someone who says, “I don’t want to look at my bank account because I don’t need that negative energy in my life.” This leads to avoidance rather than a tangible solution.
Judson Brewer, a psychiatrist and doctor, told Chime that financial avoidance tendencies stem from survival instincts, in which we try to avoid pain and seek pleasure. In fact, unexpected bank fees, including overdraft fees, affected 20% of Americans in 2023, per a Chime study.
Using Your Credit Card as an Emergency Fund
As a general rule of thumb, you should have between three and six months’ worth of living expenses set aside in a separate account for emergencies. Even if you’re not there right now, even having just $1,000 or so can help in smaller emergencies.
The problem, as Cruze pointed out, is that many people consider their credit card to be their emergency fund.
“Here’s my theory,” she said. “I don’t think people always are like ‘Oh, yeah, the credit card companies are for me.’ I don’t think they always think that. I think they believe [they] have no other option.”
It’s essentially like viewing your credit card as a last line of defense if something comes up. The better habit, however, is to start saving up for the unexpected.
Buying Things Because They’re on Sale
A lot of people will buy something because it’s on sale, even if they don’t really need it or have the funds.
“Just because it’s on sale doesn’t mean it’s a good deal,” Kamel said.
In fact, according to Maps Credit Union, retailers know customers want sales, so they’ll advertise lower prices on items that actually weren’t sold at a higher price previously. Labels that advertise sales can trick consumers into buying more.
If you’ve budgeted for a specific sale, that’s a different matter altogether. But if you haven’t or the discounted item isn’t a must-buy, it’s usually better to hold off.
Comparing Yourself to Others
Comparing yourself to others is another bad money habit — one made all the easier by the prevalence of social media.
But as Kamel pointed out, it can be a hard habit to break.
“Even as you … get better in your career, you get better with money,” he said, “well, there’s always someone who’s nine steps ahead of you that you’re like, ‘But, we don’t have that kind of money.'”
To avoid this, it’s important to “cultivate contentment.” You can still be motivated to do better and achieve your financial goals while being happy with where you’re at.
Paying for Subscriptions You Don’t Use
Whether it’s a gym membership or a streaming service, if you’re paying for a subscription you almost never use, you’re losing money. And if you’re living month to month, that’s money you don’t have.
According to a CNET survey, Americans spend an average of $91 monthly on subscriptions. Additionally, 48% of people said they signed up for a free trial of a paid subscription and forgot to cancel.
Sharing Personal Information Online
It’s all too easy to let your private financial information end up online. You might not even be able to fully avoid it. But if “bad actors” — as Cruze calls them — find that information, they can use it in ways that hurt you financially.
If you must have your financial information online, do so with caution. Use secure websites and only share with companies or sites you trust.
To protect your privacy, Consumer Reports suggests limiting the information your devises share with apps. You may also need to contact specific companies to prevent your information from being shared with third parties.
Justifying Little Splurges
Impulse buying is another common bad money habit that you might want to ditch in 2025. These small purchases might seem nominal, but they can add up over time.
Kamel did say that he and Cruze support treating yourself as long as “it’s in the budget, it’s not impulsive, and you actually wanted to buy it and you know what it’s doing to your other financial goals.”
If you have the money, you can treat yourself. Just do so with awareness of how it’s impacting you now and in the long term.
Letting FOMO Control Your Financial Decisions
FOMO is the “fear of missing out.” It’s a common problem in many areas of life, including money.
When you let FOMO control your decision making, you might make bad financial decisions. This could mean pulling from your emergency fund to pay for a fun outing. Or it might mean taking on a debt for something you can’t afford right now just because others are doing it.
Be aware of your budget and your bank account. If you don’t want to miss out, try setting aside a small portion of your income for those fun activities.
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This article originally appeared on GOBankingRates.com: 9 Bad Money Habits To Ditch in 2025, According to Rachel Cruze and George Kamel
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