Many people fall into bad money habits and don't realize it until their habits become hard to manage.

If you want to change your habit, start by breaking it down. Understand your cue, reward, and routine, then use it to break the cycle of your habit.

Trying to patch up financial issues that are causing you to live from paycheck to paycheck can keep the cycle going, such as payday loans, and hardship withdrawals from your retirement account. It may get you out of immediate trouble but will set you up for eventual failure.

• Instead, consider looking for regular expenses you can trim.
• Reevaluate your needs vs. wants.
• Downgrade.
• Learn some basic skills to deal with emergencies yourself.

Warren Buffet is known for his frugality. Frugality isn't about buying anything at a low price - it is about buying value at a low price.

The key is not just to look at the price, but to keep value in mind, too.

According to Warren Buffet, if you invest in a very low-cost index fund over time, you'll do better than 90% of people who start investing at the same time. To start, Buffet advises to put 10% of the cash in short-term government bonds, and 90% in a very low-cost S&P 500 index fund.

The money you want to invest outside of your retirement accounts:

• Learn some basic investing terminology.
• Open a brokerage account.
• Pick an index fund.
• Buy the fund through your brokerage account.

Warren Buffet's index fund investing strategy is to "set it and forget it" and not to get caught up in daily valuations.

Don't think about owning stock if you aren't willing to hold it for then years. Buffet suggests looking at the big picture when you pick your investments.