The excitement of the new year may have eased but it is never too late to replace bad habits with healthy resolutions. From wanting to blast credit card debt to growing your savings, there is no time like now to set the foundations for a financially sound 2018. Comparison website mozo.com.au has revealed the five worst financial habits Australians are guilty of as well as some of the best ways to get financially fit in 2018.

“Australians can avoid putting themselves at risk by creating a budget and putting money aside into a rainy day fund,” says Kirsty Lamont, Mozo Director.

Credit card debt has revealed itself to be Australia’s worst financial habit with almost a quarter of the population affected by it. Mozo also found not having a financial buffer and failing to budget to be the nation’s costliest mistakes.

Australia’s worst credit card mistakes

Racking up debt on your CC

If you are affected by credit card debt, don’t despair, you are not alone - almost 1 in 4 Australians are also affected by it. The best way to bounce back financially is to pay down any existing debt by prioritising the highest interest-accruing debt. Don’t hesitate to use any spare funds you may have, such as a small envelope of cash received at Christmas or a bonus from work, every little helps towards eliminating debt and you should funnel away as much as you can.

Not having a Rainy Day Fund

It may not be a pleasant thought but putting money aside for emergencies can be a real life-saver. Before squirreling away for next season’s must-have shoes, consider protecting your pennies and putting them in a savings account. One of the most common approaches is aiming to have around three months’ salary safely squared away in case the unexpected happens.

Avoiding the B word

Budget, budget, budget. We know, it isn’t the most exciting thing to do, especially in comparison to planning a last-minute tropical getaway, but take it from us - having a budget is the best way to stay financially fit. Reviewing exactly where your money is going each month is a surefire way of keeping control over what you spend. By looking at wasteful spending straight in the eye, you might think twice about the recurring home delivery meals.

Stocking up on credit cards

According to Mozo’s research, 17% of Aussies have multiple credit cards. If you feel like the plastic may be getting the best of your finances you may consider taking out a balance transfer card. Balance transfer cards can be a great way of combining your debts on to one account at a lower interest but keep in mind that these low interest periods are temporary. Be sure to check out Mozo’s top balance transfer cards for 2018 here.

Using your plastic to pay for fixed expenses

Using your credit card to pay for rent is not what it is intended for. While it can be easy to confuse your credit card with easy money, the truth is, using your credit card for fixed expenses can be risky. If you have found yourself in a sticky situation consider setting up a direct debit for non-negotiables such as rent and utility bills. Automating your payments is the most reliable way of guaranteeing you always have enough cash left over for bills.

For more money saving tips head to mozo.com.au