Tired of Being Broke? 3 *Bad* Money Habits You Must Avoid

Introduction

Money habits have been a big part of my self-development journey.

Like many, I’ve made mistakes, felt regret, and learned valuable lessons from them.

Whether you’re just starting out or focused on improving your personal finances, I hope that sharing these money mindsets (❌not financial advice!) will help you make positive changes in your life.

Habit #1: Buying whatever catches your eyes

You’re scrolling through an online shop, and suddenly something catches your eye.

Maybe it’s a sleek gadget, a stylish outfit, or a trendy home accessory.

You didn’t plan to buy it, but the pull is strong, and the discounts are compelling.

And before you know it, you’ve added it to your cart and hit 🛍️ “checkout.”

How Did We Get There?

For many of us, shopping becomes a quick fix for stress, sadness, or boredom.

We hope that buying something new — something we don’t really need — will bring us a sense of comfort or excitement.

Others simply can’t resist the thrill of discovering something interesting and feeling the urge to own it.

In the moment, it’s satisfying. But that excitement fades fast, often leaving us with regret when we realize we’ve spent money on something unnecessary.

Solution #1: Revisit your most important goals

Whenever you feel the urge to make an impulsive purchase, take a moment to revisit your most important financial goals.

Whether it’s paying off your debts, investing more, building an emergency fund, or saving for a vacation, remind yourself of these priorities.

This reflection helps refocus your energy on long-term goals and makes it easier to resist the temptation to spend impulsively.

You can set up your financial goals like this using this Notion Finance Tracker:

Solution #2: Create a monthly budget

To avoid unnecessary spending, make a monthly budget and stick to it.

Start by setting aside amounts for savings, investments, spending, and debt repayment.

Within your spending budget, divide it into Needs and Wants. At the end of each month, review your “Wants” spending to see if you made any impulse purchases.

Another helpful tip is to create a “Wish List.” Write down items you’re tempted to buy on a whim. Check this list later (usually after 30 days) to decide if you still want these items.

Habit #2: Don’t bother reviewing your finances

Think about the last time an insurance bill or medical expense caught you off guard. You were simply unprepared for it.

Or consider how subscriptions renew automatically without you realizing you purchased them — and you’re not even using them anymore!

And then there’s the time you planned a fun night out or made a spontaneous purchase.

Now your bank account is more depressed 😔 than you expected.

By not reviewing your finances regularly, you leave yourself vulnerable to these surprises.

How Did We Get There?

Many people avoid checking their finances because it feels like a hassle or they don’t have the time.

Sometimes people think that making money is more important than tracking, reviewing, and budgeting. This mindset can get us into trouble because —

if we don’t measure it, we can’t improve it 🤯

Others find it overwhelming to deal with receipts, bills, and statements and don’t know where to start.

Solution #1: Track your subscriptions

Go through all your recurring subscriptions, like streaming services, games, mobile apps, gym memberships, meal kits, or monthly delivery boxes.

Next to each item, note if you’re getting any value from it or not.

If you find any subscriptions you don’t use or need, cancel them right away.

You can also remove them from your credit card or account to avoid accidental charges.

Solution #2: Track all upcoming payment dates

I made a Notion Payment Tracker to keep track of all my upcoming payment dates. This tool helps me stay organized by listing things like insurance bills, routine maintenance, and subscriptions.

In my tracker, I include:

• The type of payment (e.g., monthly or yearly)
• The payment amount
• The last renewal date

I also added an automatic countdown that shows how many days are left until the next payment is due and visually alerts me if I’m overdue.

Habit #3: I can afford it, so why not?

As your income becomes bigger and bigger, it’s easy to fall into the traps of lifestyle inflation.

You have more disposable income than you did when you first started out.

And you find yourself spending more to match your new financial status.

This could include fancy dining, designer clothes, bigger homes, expensive cars, and costly subscriptions — just to name a few.

And then one day, you realize you need to work more hours to pay for your upgraded lifestyle. It starts to feel like you’re stuck on a never-ending hamster wheel.🐁

How Did We Get There?

When you start making more money, it’s natural to want to reward yourself with nicer things. After all, your inner self is whispering — “I’ve worked so hard, so I deserve it.”

This is totally fine as long as you don’t go overboard..

(1) Keeping up

The urge to keep up with your peers and neighbors can lead to financial trouble. For example, seeing friends or celebrities with cool stuff can make you want the same.

(2) Signaling

Sometimes, people buy expensive items not just for themselves but to signal their success and status to others. This can be a way of showing off or proving to others that you’ve made it, which often means spending beyond your means to keep up appearances.

(3) Coping mechanism

It can also be a way to cope with insecurity or the fear that people will not take you seriously unless you display material success. This desire to project an image of success can lead to overspending, as you try to gain approval or admiration from others.

Solution #1: Understand the differences!

Truly wealthy people can afford luxuries and upgrade their lifestyles because they have several sources of passive income that cover these expenses. This means their money keeps coming in without them needing to work for it.

On the other hand, many people with high-paying jobs don’t have this kind of financial cushion. Their income is often tied to their ongoing work, and without alternative sources of income, their ability to sustain a luxurious lifestyle can be precarious.

Solution #2: Track lifestyle creeep purchases

Create a habit of tracking every single purchase related to lifestyle upgrades.

Whether it’s a new subscription, upgrading to a nicer car, or moving to a more expensive home, documenting these helps bring attention to how small decisions can add up over time.

You may not realize how much you’re spending until you see it all laid out.