Being a savvy spender is an accolade that the vast majority of us would wear with pride. But it doesn’t pay to get complacent where your finances are involved. After all, true financial success isn’t a static thing – it’s a lifetime goal. Money is also a multifaceted matter. Just because you’ve got your ducks in a row on one side of the coin, doesn’t mean you aren’t still at risk of debt in certain ways.

In fact, there are a few different lifestyle choices that could send even the most savvy spender into a spiral of debt. In this article, we’ll consider what they are and how you can avoid them.

# 1 – A General Lack of Knowledge

Even if you know money management basics, you might not be a financial genius. To some extent, you don’t need to be, but lacking financial knowledge in key areas can leave you at more risk of scams, unreasonable repayment plans, or outright bad investments.

Unfortunately, this monetary blindness is something that society is ultimately built around. As National Debt Relief CEO Alex Kleyner discussed in a recent article, silence surrounding money is now commonplace, and it leaves a lot of us in the dark about the specifics and risks of debt.

But informing yourself can help you to overcome these intentionally hidden realities. Working with a trained accountant is an especially great way to vet your financial choices in advance and thoroughly talk through each decision. Alternatively, it’s key to conduct your own research before making any financial commitment.

# 2 – A Lack of Preparation

Savvy spending is possible, and even preferable, when you’re living from pay cheque to pay cheque. Unfortunately, it’s not always enough to keep you safe from unexpected bills. And, even if you’re the most financially stable person in the world, even one mishap of this nature could see you deep in debt if you’re not prepared..

Even if your monthly budget is tight, setting aside as much as you possibly can is, therefore, key. This is true even if you only have $25 to spare. Ultimately, every little saving will help you build an emergency fund that, ideally, you’ll want to make up around 3-6 months of your salary in the long-run.

# 3 – A Poor Approach to Health

Did you know that poor health can also be a debt risk factor? In fact, it’s possibly the largest risk you’ll face, considering that it’s the leading cause for bankruptcy in America.

Even if you can afford decent health insurance, your premiums will inevitably rise if you’re facing lifestyle-related health risks. That alone can lead to debt. Unexpected or uninsured health emergencies as a result of these things can also instantly pile debt upon you. The solution? Cut out bad habits, take steps to live a healthier life moving forward, and consider investing in your health to save yourself significantly down the line.

If you’re proud to be a savvy spender, then don’t let debt catch up to you because of these lifestyle mishaps!