Are These “Good” Money Habits Keeping You Broke?
Are Your Money Habits Helping or Hurting You
We all want to feel like we’re “good with money.” But what if some of the habits we think are smart financial moves – financial life hacks- are actually holding us back? Sometimes, it’s not what you do with your money, but how you do it, that makes the biggest difference.
Any of these sound familiar?
1. Buying in Bulk Without a Plan
Who doesn’t love Costco or Aldi?! Noone right….?
There’s something about buying in bulk that feels responsible. After all, it’s cheaper per unit, right? But stocking up on items you don’t actually need or use leads to wasted cash and wasted products. It’s tempting but often doesn’t work out the way we think it will.
The Fix: Buy in bulk only when it’s for items you consistently use, and you have space to store them. Otherwise, you’re just tying up cash that could be put to better use.
2. Chasing Credit Card Points
Credit card points and rewards programs can be enticing, but how often do they lead to overspending? The Banks aren’t in the business of losing money so there is a reason they offer these deals!
You often pay a much higher annual fee, and research tells us that consumers are likely to spend more buying things they don’t really need, just to hit the minimum spend for a “bonus”. Even worse, if you are paying a surcharge fee everywhere or carrying a balance, the interest you pay likely outweighs any points you’ve earned.
The Fix: Treat credit card points as a bonus for spending you would have done anyway, not a goal to chase. And always pay off your balance in full.
3. Over-Insuring Everything
Insurance is essential for protecting your wealth, but there’s a fine line between being prepared and overdoing it. Paying for redundant or unnecessary coverage can drain your finances while providing little benefit.
The Fix: Reassess your insurance needs regularly. If your situation has changed, you might start stepping down the level of cover you have until the point where its no longer needed at all.
4. Refusing to Spend on Necessary Maintenance
Health is Wealth! Skipping maintenance on your car, home, or even your health may seem like a way to save money in the short term. But ignoring small issues often leads to much bigger, more expensive problems down the line.
The Fix: View maintenance as an investment, not an expense. Regular upkeep saves you money and stress in the long run.
5. Thinking More Income Will Solve Everything
It’s easy to think, If I could just earn more money, my problems would go away. Or When I earn more, I’ll start saving or investing. But unless you address your spending habits and money mindset, more income often leads to more expenses. You’ll end up chasing the same financial struggles at a higher pay grade.
The Fix: Focus on managing the money you have now. Learn to budget, save, and invest before relying on a bigger income to solve problems.
6. Avoiding All Debt
Debt often gets a bad rap but debt is a tool and if used wisely, can help us grow our wealth. The important thing to understand is not all debt is bad. While high-interest consumer debt can be crippling- some times its unavoidable. Avoiding all debt out of fear can hold you back from opportunities to grow. Debt itself isn’t inherently bad, its how we use or misuse it that causes the issues.
The Fix: Understand debt and how to use it. Leverage debt wisely for investments that align with your financial goals.
7. Saving Over Investing
Saving feels safe, but keeping all your money in a bank account can mean missing out on opportunities for growth. With inflation eating away at your purchasing power, your “safe” savings could actually lose value over time.
The Fix: Build an emergency fund and save for short-term needs but consider investing for the long term. Even small, regular contributions to an investment account can create significant growth over time.
8. Avoiding Professional Financial Help
Could you do it alone? Probably. Could you do it much better with help? Absolutely.
Somethings should be DIY-ed. Lots of people assume they can manage their finances on their own, but without expert guidance, you may miss opportunities or make costly mistakes.
The Fix: Don’t be afraid to seek help. An expert can provide clarity, strategy, and support, helping you reach your goals faster and with less stress.
Are These Habits Keeping You Stuck?
Sometimes, the hardest part of managing money isn’t the numbers—it’s the mindset. It’s easy to fall into patterns that feel “responsible” without questioning whether they’re truly serving you.
Take a moment to assess your habits. Are they aligned with your goals, or are they keeping you in a cycle of stress and stagnation?
True financial success isn’t about doing everything perfectly—it’s about doing the right things consistently. By letting go of habits that no longer serve you, you can start moving toward a wealthier, more intentional future.
What’s one habit you’re ready to leave behind? Share in the comments—I’d love to hear your thoughts!