7 Money Habits Keeping You Broke (And How to Fix Them)
Making a few tiny changes to our daily habits can make a huge difference in our finances.
This post is all about those little money habits that keep us broke, and what we can do to fix them.
Let’s dive in.
7 Habits Keeping You Broke
1. The Subscription Trap
One of the biggest culprits keeping you broke is subscribing to every service that catches your attention.
From TV subscriptions and apps you barely use to meal kits and gym memberships, those monthly charges add up fast.
They seem convenient, but they eat away at your savings.
I’ve been there myself.
I used to have both Birchbox and Ipsy makeup subscriptions.
While I got some lovely products, there were always things I didn’t like.
The most annoying part was when I’d think I had a certain amount in my account, and an automated payment would suddenly reduce my balance.
What you can do:
- Take advantage of free trials, but set a reminder to cancel them a few days before they expire. Don’t wait until the last minute—you never know if the subscription renews at midnight or midday.
- Go through your bank statements and cancel any subscriptions you don’t use. You can always reactivate them later if you change your mind.
- Another smart choice is to split subscriptions with friends or family to cut the cost.
2. Retail therapy
Don’t worry, you’re not the only one guilty of retail therapy—I’ve been there too.
When I’m bored or unhappy, I used to open my phone and start window-shopping.
Before I knew it, I was placing an order.
That quick high from a new purchase is temporary, but the guilt and debt are not.
What you can do:
Challenge the urge!
Before you buy something, ask yourself: “Do I need this, or do I just want it?”
Can you wait and save for it?
Could you borrow it or find a cheaper alternative?
Speaking of cheaper alternatives, instead of buying a brand-new designer bag or coat, why not check out a secondhand store?
You can find great quality items for a fraction of the retail price.
If secondhand isn’t your thing, stores like Burlington and TJ Maxx are also great for budget-friendly options.
3. Eating Out & Your Morning Coffee
Another thing that silently eats into your budget is eating out and buying that special oat milk latte every morning.
These seem like harmless purchases, but eating out daily adds up to a shocking amount over a year.
What you can do:
Start making your lunch and brewing your coffee at home.
My husband and I both pack our lunches for work (and even for my weekend gig!).
It’s not always convenient, but cooking your food at home can significantly reduce your spending.
Make eating out a treat you give yourself occasionally, not a daily habit.
4. Impulse Buys
Impulsive spending is another habit that can keep you broke.
That new gadget or bag that caught your eye that you just had to have?
How often does it end up collecting dust in a closet?
I’ve bought several things impulsively, too.
I once bought a gorgeous pair of pumps while pregnant with my second child.
I never wore them—not while I was pregnant and not after.
They started peeling from sitting in storage forever, and I ended up throwing them away.
What’s the solution?
I ask myself if I truly need the item, and I always sleep on it.
I also consider where the money will come from.
After a few days, the initial excitement usually wears off, and I end up not buying it.
Try a waiting period and see if you still feel the same about the item in a week or a month.
5. Competing with Friends or Family
Another dangerous habit that keeps us broke is comparing our finances with others.
Maybe your friends earn more and buy expensive things.
To keep up with them, we spend money we didn’t plan for on things we don’t even need.
What you can do:
Instead of trying to keep up, focus on your own journey.
Celebrate your wins, no matter how big or small.
Track your progress and set realistic goals that are within your means.
Remember, financial wellness isn’t a competition—it’s a journey.
6. Friends Who Encourage Foolish Spending
Speaking of competition, the kind of friends we keep can also contribute to being broke.
Sometimes, friends can directly or indirectly encourage you to spend foolishly.
You know, the kind of friends who only want to eat at expensive restaurants.
Or only like you when you’re buying expensive clothes and bags like they are.
That kind of friendship will keep you broke.
What you can do:
Cut off people who can’t accept you for who you are.
Focus on building genuine friendships based on real connections.
You’ll be shocked at how much your finances improve once you step away from fake friendships.
7. The Kids’ Spending Trap
If you have kids, sometimes you buy things to make them happy in the moment (instant gratification).
But if those purchases aren’t controlled, they can seriously impact your finances.
What you can do:
Sometimes, when my kids ask for a toy they saw on TV, I say, “No, we’re not getting it.”
It’s important for them to get used to hearing no sometimes.
We also limit what they can pick out at the store to what we’re there for, like clothes.
If they really want a toy, we’ll keep it in mind for their next birthday or Christmas.
It doesn’t mean you can never buy them anything.
But you have to control the urge to buy everything they see.
Tantrums might be in your future—lol—but you got this!
Conclusion
Breaking these habits isn’t easy, but the payoff is enormous.
Embrace mindful spending and ditch the habits that encourage being broke.
You’ll see a huge improvement in your finances.
What are your tips for achieving financial freedom?
Share them in the comments!
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