The 12 Worst Money Habits And How To Break Them

11. Paying the Price for Last-Minute Holiday Purchases

December comes at the same time every year, so why does it always seem to sneak up on us, leaving us scrambling for gifts and shelling out extra cash?

Instead of drafting your gift list in early December, why not get into the habit of starting it in late December or early January for the following year? This way, you’ll have 12 months to use discounts, wait for deals and generally avoid last-second splurging.

Plus, a little advance planning can provide an added benefit — for your budget. “I’ve often encouraged clients to make a 12-month gift calendar,” says Derrick. “By mapping out birthdays, anniversaries, special days and holidays, along with how much you typically spend on each person, you get a better sense of your yearly cost. Then divide that by 12. In the months when you don’t have any gifts to buy, you can set that cash aside for the months that you go over your monthly budgeted amount.”

How Much You Can Save: The National Retail Federation predicted that the average American would spend more than $700 on gifts during the 2013 holiday season. If you happen to be one of these “average” spenders, and you accrue 25% worth of discounts on that $700 by using coupons, taking advantage of sales and loyalty programs and avoiding exorbitant charges for last-minute shipping, you’ll save close to $200.

12. Forgetting About Gift Cards

Have you happily accepted a gift card only to let it expire in the deep recesses of a drawer? Join the club.

“People tend to view gift cards and gift certificates as “I don’t know what to get you” kind of gifts, but the fact is they’re essentially cash,” says Kirkpatrick. “Even if a card isn’t for a place you frequent, you can use it to buy someone else a gift. Those ubiquitous Starbucks cards are perfect for treating coworkers or business contacts to coffee, and a restaurant gift certificate can finance a date night.”

So instead of throwing your gift cards in a drawer “for safe keeping,” stick them in your wallet or your car’s glove compartment for easy access when the opportunity arises. If you really won’t have a chance to use it, regift the card or trade it for a card you might actually use at a site like Gift Card Granny.

How Much You Can Save: Americans waste over $1 billion a year in unused gift cards. Every dollar you don’t let expire is a buck saved. If you manage to redeem or regift just three $20 gift cards left over from the holidays, you’ve saved $60 right there.