12 Habits That Ruin Your Wallet: Bad Mindset, Money Management, Budgeting and Personal Finance Mistakes. Impulse buying can quickly hurt your budget, making it crucial to avoid making such purchases without considering your budget. Living beyond your means by spending more than you earn leads to debt accumulation while neglecting to create and follow a budget can cause financial chaos. Ignoring savings and not setting aside money for emergencies or future goals weakens your financial stability. Relying on credit cards for everyday expenses often results in high-interest debt. Without clear financial goals, managing your money effectively becomes challenging, and avoiding investments means missing out on opportunities to grow your wealth.