I used to wonder why my bank account always seemed empty, no matter how hard I worked. It felt like money just disappeared—until I finally took a hard look at my habits.
The truth is, being broke isn’t always about how much you earn. It’s often about the little daily choices that slowly drain your finances without you even realizing it.
The good news?
Once you recognize these money-sapping habits, you can start making changes that actually help you get ahead.
If you’re tired of feeling broke, it’s time to say goodbye to these nine costly behaviors.
1) Ignoring where your money actually goes
Ever checked your bank statement and wondered where all your money went? Yeah, me too.
The truth is, small expenses add up fast. A coffee here, a quick takeout meal there—it doesn’t seem like much in the moment, but over time, these little purchases drain your bank account.
We tend to underestimate how much we spend because we don’t track it. And when we don’t track it, we don’t see the patterns that keep us stuck in the cycle of being broke.
If you want to take control of your finances, start paying attention. Look at your spending habits honestly. You don’t need to obsess over every penny, but knowing where your money actually goes is the first step to making better choices.
2) Treating credit like free money
I used to swipe my credit card without thinking twice. If I wanted something and didn’t have the cash, no problem—credit would cover it. I told myself I’d pay it off later.
But “later” always seemed to turn into “never.” The balance kept growing, and so did the interest. Before I knew it, I was stuck in a cycle of minimum payments that barely made a dent in what I owed.
Credit can feel like free money in the moment, but trust me—it’s anything but. The longer you put off paying, the more you end up spending in the long run.
If you’re tired of feeling broke, stop relying on credit to cover things you can’t afford. Instead, start living within your means and using credit wisely—only for emergencies or things you can pay off right away.
3) Lifestyle creep
Getting a raise or a better-paying job should make life easier, right? But somehow, no matter how much more we earn, it never seems to be enough.
That’s because of lifestyle creep—the tendency to increase spending as income goes up. A bigger paycheck leads to a nicer apartment, fancier dinners, and more expensive habits. Before long, you’re back to feeling just as broke as before.
This is why many high-income earners still struggle financially. It’s not always about how much you make—it’s about how much you keep.
If you want to break the cycle, resist the urge to upgrade your lifestyle every time you earn more. Instead, use that extra income to save, invest, or pay off debt before increasing your expenses.
4) Ignoring emergency savings
I used to think I didn’t need an emergency fund. If something unexpected came up, I’d just “figure it out.”
But when my car broke down and I had no savings to cover the repair, I had to put it on a credit card—pushing me even further into debt.
Unexpected expenses aren’t a matter of if—they’re a matter of when. Medical bills, car repairs, job loss—life has a way of throwing financial surprises at us when we least expect them.
Without a safety net, even a minor setback can send you spiraling into financial stress. That’s why having an emergency fund is so important.
Start small if you have to, but make it a priority. Even a few hundred dollars can make a huge difference when life throws you a curveball.
5) Trying to keep up with others
It’s easy to feel like you’re falling behind when you see friends buying new cars, taking exotic vacations, or upgrading to the latest gadgets. Social media only makes it worse, constantly showing us highlight reels of other people’s lives.
But here’s the thing—just because someone looks like they have money doesn’t mean they actually do. Many people finance their lifestyles with debt, living paycheck to paycheck just to keep up appearances.
Spending just to match what others are doing is a fast track to staying broke. Instead of comparing yourself to others, focus on what actually matters for your financial health.
True wealth isn’t about showing off—it’s about having financial freedom and security.
6) Avoiding difficult money conversations
Money can be an uncomfortable topic. Whether it’s discussing finances with a partner, setting boundaries with friends, or even being honest with yourself about spending habits, it’s tempting to avoid the conversation altogether.
But silence doesn’t solve financial problems—it makes them worse. Avoiding these discussions can lead to debt, resentment, and financial stress that weighs on every part of your life.
Honest conversations about money aren’t always easy, but they’re necessary.
Whether it’s creating a budget with your partner, saying no to plans you can’t afford, or admitting when you need to make changes, facing these discussions head-on is one of the most powerful steps toward financial freedom.
7) Thinking “I’ll start saving later”
For the longest time, I told myself I’d start saving when I made more money.
I thought once I had a higher-paying job or fewer expenses, then I’d finally have room to put money aside.
But somehow, “later” never came. There was always another bill, another reason to wait. And the longer I waited, the harder it became to start.
The truth is, saving isn’t about having extra money—it’s about making it a priority, no matter how little you can set aside. Even small amounts add up over time.
The sooner you start, the easier it gets. Waiting for the “perfect time” only keeps you stuck in the cycle of being broke.
8) Not having a plan for your money
It’s easy to think that if you just earn more, your financial problems will disappear. But without a plan, even a bigger paycheck won’t stop money from slipping through your fingers.
Without direction, you end up spending impulsively, covering bills as they come, and wondering where all your money went at the end of the month. That’s how people with decent incomes still find themselves living paycheck to paycheck.
A budget isn’t about restriction—it’s about control. When you give every dollar a purpose, whether it’s for savings, essentials, or fun, you stop wondering where your money went and start telling it where to go.
Having a plan is the difference between staying broke and building real financial stability.
9) Believing that being broke is just the way it is
If you convince yourself that struggling with money is just part of life, it will be. It’s easy to feel stuck, especially if you’ve been living paycheck to paycheck for years.
But the moment you accept that things can’t change, you stop looking for ways to make them better.
Your financial situation isn’t set in stone. The habits you choose today shape your future. Small changes—tracking your spending, saving a little at a time, making intentional choices—can add up to something bigger than you ever thought possible.
Being broke isn’t an identity. It’s a situation. And situations can change.
Bottom line: small choices create big change
Money struggles can feel overwhelming, but they often come down to daily habits—the small decisions that either drain your bank account or help you build stability.
Behavioral economist Richard Thaler introduced the concept of “mental accounting,” which explains how we tend to categorize money in ways that don’t always serve us financially.
For example, we might splurge with a tax refund while struggling to save from our paycheck, even though it’s all the same money. Recognizing these patterns is the first step to making better financial choices.
Breaking free from the cycle of being broke isn’t about drastic overnight changes. It’s about small, intentional shifts—paying attention to spending, setting aside a little savings, making thoughtful financial decisions.
Over time, these small choices compound into something bigger: control, security, and the freedom to live life on your terms.
