Where our money goes: 5 bad habits and how to avoid them

Each of us wants to manage our finances well, but we often don't even realize how a number of harmful habits lead to unreasonable spending. Here are five of them and how to protect ourselves.

1. Impulsive shopping Shopping without a plan often leads to purchases that we don't really need. Stimulated by emotions or advertisements, we buy unnecessary things. The solution? Create a list of necessary purchases and stick to it. Leave time to think before each major purchase.

2. Underestimating Small Expenses Small everyday expenses like coffee, snacks, or frequent taxi rides may seem insignificant, but they can add up. Keep a spending journal to see how much you're really spending and see where you can save.

3. Life on Credit Credit cards offer convenience, but they can quickly lead to debt. Use credit wisely by keeping an eye on interest rates and avoiding spending more than you can afford. It's a good practice to pay off your balances at the end of each month.

4. Neglecting the budget The lack of a financial plan is one of the main reasons for poor money management. Create a budget and review it regularly. Set categories for different expenses and set aside a portion for savings.

5. Paying for subscriptions you don't use Many people pay for subscriptions they rarely use – fitness, streaming services or apps. Regularly review your subscriptions and cancel those you don't actively use.