Don't Wait Till the New Year: Break These 3 Financial Habits Now

It's hard to believe that we're nearing the tail end of 2023. But seeing as how the weather's turned cool (or even downright cold) in much of the country, and stores already have their Christmas displays out, it's fair to commence the countdown into 2024.

Now, it's pretty common for people to make a list of New Year's resolutions. And some of those might be financial in nature. But if you're someone who can own up to three habits, you should know that breaking them ASAP is a far better bet than waiting until 2024.

1. Adding to your credit card balance

During the second quarter of 2023, U.S. credit card balances rose $45 billion to a high of $1.03 trillion, according to data from the Federal Reserve Bank of New York. If you owe money on your credit cards, you're clearly not alone.

But one thing you don't want to do is keep adding to that debt. Doing so might only cause you to lose more money to interest. 

If anything, you should be taking steps to whittle down those balances. So if you're already in debt, try your best to stop using your credit cards and come up with a debt payoff plan.

One option you may want to look into is a balance transfer. If you're able to move your existing balances over to a new credit card with a low or 0% interest rate, you may have an easier time getting ahead on your payments. 

You can also try consolidating your credit card debt into a personal loan. That way, you'll get the benefit of a fixed interest rate on your debt and predictable monthly payments -- plus a set timeline for getting out of debt.

2. Paying for services you don't really use

Services like subscription boxes and streaming services can make life more pleasant. And if you can afford them, you might think it's no big deal to keep having those charges recur. 

But while it's one thing to pay for a service you get enjoyment from, it's another thing to pay for a service you hardly ever use. So take the time to look at your bank and credit card statements to get a full list of the services you're signed up for. And then make cuts based on usage or a lack thereof.

Perhaps a given streaming service only costs you $15 a month. But if you're not using it, why not put that $180 a year in your savings account?

3. Ordering takeout when you're not in the mood to cook

Life has a tendency to get busy. And if you're someone who's not all that comfortable in the kitchen, it's natural to fall back on takeout when the last thing you want to do is cook a meal.

But takeout can be really expensive. And while it's totally okay to order takeout once a week, or to save it for those nights when you're downright exhausted, ordering takeout multiple nights a week could put a huge strain on your finances. 

Instead, figure out cheaper alternatives that don't require a lot of effort on your part. Some meal delivery services will send frozen, pre-cooked entrees to your door at a lower price point than fresh takeout from an area restaurant. So it's worth pricing those options out to see what makes the most financial sense. 

You could also spend a little time researching one-pot recipes that yield multiple servings of food without a lot of effort. When you have a free hour on a weekend, throw those ingredients together for a week's worth of leftovers. 

Many people see the start of a new year as an opportunity to rethink and refresh their financial habits. But if these things apply to you, it's best to kick those habits immediately rather than wait until the start of 2024.