13 Money Habits That Will Leave You Broke

Being broke isn’t always about how much money lands in your bank account every month. I’ve seen people making six figures who are somehow always stressed about money, and I’ve met folks earning way less who seem to have their financial lives together. The difference? It’s all about habits.

You see, going broke doesn’t happen overnight. It’s not like you wake up one morning and suddenly you’re in debt up to your eyebrows. Nope. It creeps up on you through those everyday choices that seem totally harmless at the time.

That daily coffee run, those “just browsing” shopping sessions, the subscriptions you forgot you even had. Before you know it, you’re stuck in this frustrating cycle where your paycheck disappears faster than ice cream on a hot day.

But here’s what I want you to know: you’ve got way more control over this than you think. After years of studying personal finance and helping people turn their money situations around, I’ve noticed the same patterns keep showing up. And guess what? They’re all fixable.

So grab your favorite drink (homemade, of course, because we’re about to talk about saving money!), and let’s walk through these 13 money habits that will leave you broke. More importantly, I’ll show you exactly what to do instead.

13 Money Habits That Will Leave You Broke

Before we jump into the specific habits, let’s talk about why this stuff matters so much. Your financial habits are like the foundation of a house. If the foundation is shaky, it doesn’t matter how nice the paint job looks or how fancy the furniture is. Eventually, everything’s going to come crashing down.

The tricky part? Most of these money-draining habits don’t feel dangerous at first. They’re sneaky. They chip away at your finances so slowly that you don’t notice until you’re wondering why there’s more month left at the end of your money. Sound familiar?

Here’s the good news: once you identify these habits, you can actually do something about them. And that’s exactly what we’re going to do today.

1. Living Paycheck To Paycheck

Let me start with probably the most stressful financial situation out there: living paycheck to paycheck. This is when every single dollar you earn gets spent before the next payday rolls around. And trust me, it’s exhausting.

When you’re in this cycle, there’s literally nothing left for savings, emergencies, or planning for the future. Every unexpected expense feels like a crisis because you don’t have any cushion. Your car needs new brakes? Panic. Your kid needs new shoes? Stress. A medical bill shows up? Complete meltdown.

Why This Keeps You Broke

Living paycheck to paycheck means you’re always one emergency away from going into debt. Without savings, every unexpected cost ends up on a credit card, which means more debt, more interest payments, and even less money next month. It’s a vicious cycle that keeps you trapped.

What To Do Instead

Start by tracking everything. And I mean everything. Write down your income and every single expense for one month. You’ll probably be shocked at where your money actually goes (spoiler alert: it’s usually not where you think).

Next, look for the low-hanging fruit. Those subscriptions you don’t use? Cancel them. That daily $6 fancy coffee? Make it at home most days. Even cutting back $50 a week gives you $200 a month to work with.

Put that money straight into a separate savings account. Even if it’s just $25 per paycheck at first, you’re building momentum. Once you have a small buffer, you’ll feel less stressed, and you can start focusing on bigger financial goals.

2. Ignoring Your Budget (Or Not Having One)

Okay, I know the word “budget” makes some people break out in hives. It sounds restrictive and boring, right? But here’s the truth: a budget isn’t about restricting yourself. It’s about telling your money where to go instead of wondering where it went.

Without a budget, you’re basically driving with your eyes closed. Sure, you might stay on the road for a while, but eventually, you’re going to crash. When you don’t have a clear picture of your income and expenses, overspending becomes way too easy.

Why This Habit Drains Your Wallet

Not budgeting means you have no idea if you’re actually spending less than you earn. You might think you’re doing fine, but then your credit card bill arrives and you’re like, “Wait, I spent HOW much?” It’s one of those money habits that will leave you broke because you’re flying blind.

The Simple Fix

You don’t need some complicated spreadsheet with 47 categories and color-coded formulas. Start simple. Grab a notebook or use a free budgeting app like Mint or YNAB (You Need A Budget).

Write down your monthly income at the top. Then list all your fixed expenses: rent, utilities, insurance, loan payments. Whatever’s left is what you have for groceries, entertainment, and savings. Give each dollar a job before the month starts.

Check in weekly at first. It takes about three months for budgeting to become a natural habit, so give yourself some grace while you’re learning. The goal isn’t perfection. It’s awareness.

3. Paying Only The Minimum On Credit Cards

This one makes me cringe every time I see it. Paying just the minimum payment on your credit cards feels like you’re handling your debt, but you’re actually doing the exact opposite. You’re making the credit card company rich while keeping yourself broke.

Here’s why: credit card interest rates are insane. We’re talking 18%, 24%, sometimes even 29% APR. When you only pay the minimum, almost all of that payment goes toward interest, not your actual balance. A $3,000 debt could take you over 10 years to pay off and cost you thousands in interest.

The Real Cost Of Minimum Payments

Let’s say you have a $5,000 balance at 20% interest. If you only pay the minimum (usually around 2% of the balance), you’ll pay over $7,000 in interest alone. That’s more than the original debt! Meanwhile, that money could have been building your emergency fund, going toward retirement, or funding literally anything else.

How To Break This Cycle

First, stop using the cards while you’re paying them off. I know that sounds obvious, but you’d be surprised how many people try to dig out of a hole while still digging.

Next, choose a payoff strategy. The snowball method (paying off smallest balances first) gives you quick wins and motivation. The avalanche method (tackling highest interest rates first) saves you more money long-term. Pick whichever one you’ll actually stick to.

Pay anything extra you can toward your cards. Even an extra $50 a month makes a huge difference over time. And if you have good credit, look into a balance transfer card with 0% APR for 12-18 months. Just make sure you pay it off before that promotional period ends!

4. Impulse Buying

Oh, impulse buying. The silent killer of budgets everywhere. This is when you see something and buy it right then and there without thinking it through. Sometimes it’s because of a “great deal,” sometimes you’re emotional, and sometimes you’re just bored scrolling through your phone at midnight.

The problem is that these little purchases add up fast. A $30 shirt here, a $15 gadget there, another $40 on stuff you don’t really need. Before you know it, you’ve blown through hundreds of dollars on things that are now collecting dust in your closet.

Why Impulse Buying Keeps You Broke

Impulse purchases are almost never in your budget (because by definition, you didn’t plan for them). They eat away at money that should be going toward your actual goals. Plus, the satisfaction you get from impulse buying is super short-lived. That shopping high fades fast, but the damage to your bank account sticks around.

Strategies To Stop Impulse Spending

Here’s my favorite trick: the 24-hour rule. When you want to buy something that’s not essential, wait at least 24 hours. Add it to a wishlist or save it in your cart, but don’t check out. Come back tomorrow and see if you still want it. Nine times out of ten, the urge will have passed.

Also, turn off those shopping app notifications. Retailers are literally paying people millions of dollars to figure out how to make you spend money. Don’t make it easy for them by letting them ping your phone all day with “deals.”

Set specific spending limits for discretionary categories like clothes, entertainment, or dining out. Once you hit that limit for the month, you’re done. No exceptions. It sounds strict, but it’s actually freeing because you know exactly what you can spend without guilt.

5. Not Saving For Emergencies

If I could wave a magic wand and make everyone do one thing, it would be this: build an emergency fund. Not having money set aside for emergencies is like walking a tightrope without a safety net. Sure, you might make it across, but one wrong step and you’re in serious trouble.

Life happens. Cars break down, people lose jobs, medical bills show up, appliances die. These aren’t “if” situations. They’re “when” situations. And if you don’t have savings to cover them, you end up reaching for credit cards, which just makes everything worse.

The Real Impact Of No Emergency Fund

Without emergency savings, every unexpected expense becomes a crisis. You’re forced to choose between paying bills or fixing your car. You might have to borrow from family (awkward) or take out a payday loan (terrible idea). The stress alone is enough to make you sick.

Plus, going into debt for emergencies means you’re paying interest on top of the original expense. A $1,000 car repair becomes $1,200 or more by the time you pay it off. That’s money you could have saved if you’d just had a cushion.

Building Your Emergency Fund

Start small. Seriously, even $500 makes a huge difference. That covers most minor emergencies without needing to swipe a credit card. Once you hit that first milestone, aim for $1,000, then work your way up to 3-6 months of expenses.

Keep your emergency fund in a high-yield savings account. You want it separate from your regular checking so you’re not tempted to dip into it for non-emergencies. But you also want it accessible for when you actually need it.

Make it automatic. Set up a recurring transfer from your checking to your emergency fund, even if it’s just $10 or $20 per paycheck. You won’t miss what you don’t see, and it adds up faster than you’d think. FYI, consistency beats big one-time deposits every time.

6. Financing Everything (Cars, Furniture, Phones)

Here’s a habit that’s become way too normalized: financing every single purchase. New phone? Payment plan. Furniture? No interest for 12 months! Car? 84-month loan! (That’s seven years, by the way. Seven. Years.)

Sure, the individual payments might seem manageable. But when you’re making payments on your car, your couch, your phone, your mattress, and that TV you bought last year, it all adds up. You end up with a bunch of monthly obligations that drain your income before you even have a chance to save or invest.

The Hidden Cost Of Financing

Every payment plan is money you’re committing from future paychecks. It limits your flexibility and keeps you stuck in the cycle of working just to pay for stuff you’ve already bought. Plus, many of these “deals” come with interest or fees that make the item way more expensive than the sticker price.

This is definitely one of those money habits that will leave you broke because you’re essentially living above your means. If you can’t afford to buy something outright, you probably can’t afford it, period.

The Better Approach

Adopt a “save first, buy later” mindset. Want a new couch? Start setting aside money each month until you can pay cash for it. I know it’s not as instantly gratifying, but the feeling of buying something without going into debt is actually pretty amazing.

If you’re already stuck with multiple payment plans, make a list of everything you’re financing and the interest rates. Focus on paying off the highest-interest debt first, or use the snowball method to knock out the smallest balances for quick wins.

Going forward, save up for major purchases. Create sinking funds for things you know you’ll need eventually, like a car replacement fund or a furniture fund. It takes patience, but it’s so worth it.

7. Eating Out Or Ordering In Too Often

Let me ask you something: when’s the last time you actually added up how much you spend on restaurants, takeout, and delivery? Because I’m willing to bet it’s way more than you think. This is one of the biggest budget killers I see, and people are always shocked when they actually track it.

Look, I get it. Cooking takes time and energy, and sometimes you just want someone else to handle dinner. Plus, food delivery apps have made it ridiculously easy to order whatever you want with a few taps on your phone. But convenience comes at a serious cost.

The Real Numbers On Eating Out

Let’s do some quick math. If you grab a $5 coffee on your way to work every day, that’s $25 a week or about $100 a month. Add in lunch a few times a week ($10-15 per meal) and dinner or takeout on weekends ($30-50 per meal), and you’re easily looking at $400-600 a month just on food outside your home.

For context, a family of four can eat pretty well on groceries for $600-800 a month. So if you’re spending half that just on convenience eating, you’re basically doubling your food costs.

Cutting Back Without Feeling Deprived

Start by tracking your food spending for one full month. Every coffee, every lunch, every late-night pizza order. Write it all down. Seeing the total is usually enough motivation to make changes.

Then, meal plan. I know it sounds boring, but it works. Spend 30 minutes on Sunday planning your meals for the week and prepping what you can. When you know what’s for dinner and the ingredients are already in your fridge, you’re way less likely to order takeout.

If you really want to jumpstart your savings, try a no-eating-out challenge for a month. It’s tough at first, but most people are shocked by how much money they save. Plus, you might discover you’re actually a pretty decent cook!

8. Relying On BNPL (Buy Now, Pay Later)

Buy Now, Pay Later services like Afterpay, Klarna, and Affirm have exploded in popularity. They make it super easy to split purchases into smaller payments, which sounds great in theory. But in practice? They’re a trap that encourages you to spend money you don’t actually have.

The whole point of BNPL is to make expensive things feel affordable. “Only four easy payments of $25!” sounds way better than “$100,” right? But you’re still spending $100. And if you’re using BNPL for multiple purchases, those “small” payments add up fast.

Why BNPL Is Dangerous

BNPL services make it way too easy to overspend. You’re not feeling the full impact of the purchase because you’re only seeing a fraction of the cost upfront. Before you know it, you’ve got five different BNPL plans running at once, and you’re juggling payment dates like a circus performer.

Plus, even though many BNPL services don’t charge interest, they’re still debt. You’re borrowing money to buy things. And if you miss a payment, you’ll get hit with fees that can be pretty steep. Some services even report late payments to credit bureaus, which can tank your credit score.

Breaking The BNPL Habit

Treat BNPL exactly like credit card debt because that’s essentially what it is. Before using it, ask yourself: “Would I put this on a credit card?” If the answer is no, don’t use BNPL either.

If you’ve already got BNPL debt, list out all your payment plans and their due dates. Make paying these off a priority, and pause all new BNPL purchases until you’re clear. Create a simple calendar reminder for payment dates so you don’t miss any.

Going forward, practice delayed gratification. If you can’t afford to pay for something in full right now, add it to a wishlist and save up for it. I promise the item will feel even better when you buy it without owing anyone money.

9. Failing To Plan For Irregular Expenses

Here’s a mistake almost everyone makes: budgeting only for monthly expenses. Rent, groceries, utilities, phone bill. Check, check, check, check. But what about car insurance that’s due every six months? Holiday gifts? Annual subscriptions? Back-to-school shopping? Car maintenance?

These irregular expenses aren’t surprises. They happen every single year. But if you’re not planning for them, they feel like emergencies every time they come up. And that’s when people reach for credit cards or raid their emergency funds for things that aren’t actually emergencies.

The Cost Of Poor Planning

When you don’t plan for irregular expenses, they blow up your budget every time they occur. You’re constantly playing catch-up, never quite getting ahead because there’s always “something” that comes up. It’s frustrating and stressful, and it’s completely avoidable.

Creating Sinking Funds

The solution is simple: sinking funds. These are mini-savings accounts for specific expenses you know are coming. Take all your irregular expenses for the year, add them up, and divide by 12. That’s how much you need to set aside each month.

For example, let’s say you spend $600 on holiday gifts, $400 on car registration and maintenance, $300 on annual subscriptions, and $500 on other irregular stuff. That’s $1,800 total, or $150 per month. Set aside that $150 every month, and when those expenses come up, the money’s already there.

You can use separate savings accounts, a budgeting app with category features, or even just a spreadsheet to track your sinking funds. The method doesn’t matter. What matters is planning ahead so these expenses don’t derail your budget.

10. Not Setting Financial Goals

Let me ask you something: what are you saving for? If your answer is a vague “the future” or “I don’t know, just in case,” you’re not alone. But here’s the problem: without specific financial goals, your money has no direction. It just kind of floats around until it disappears on random stuff.

Goals give your money purpose. They help you prioritize, make better spending decisions, and stay motivated when you’re tempted to blow your budget. Whether it’s saving for a vacation, building an emergency fund, buying a house, or retiring early, having something concrete to work toward makes all the difference.

Why Goalless Spending Keeps You Broke

Without goals, every dollar feels equally important (or unimportant). It’s easy to justify spending on whatever feels urgent or fun at the moment because you’re not measuring it against anything. This is how people end up working for years without building any real wealth. They’re making money, but it’s not going anywhere meaningful.

Setting Goals That Actually Work

Start with one clear, specific goal. Not “save more money” (too vague), but something like “save $1,000 for an emergency fund by December” or “pay off $3,000 in credit card debt in six months.” Make it measurable and time-bound.

Write it down somewhere you’ll see it regularly. Stick a note on your bathroom mirror, set it as your phone wallpaper, whatever works. The more visible your goal, the more likely you are to stay focused on it.

Break it down into monthly or weekly milestones. If you’re saving $1,000 in 10 months, that’s $100 per month or about $25 per week. Suddenly that big goal feels totally doable, right?

Track your progress and celebrate the small wins. Every $100 you save or $500 you pay off is worth acknowledging. These little victories keep you motivated for the long haul.

11. Letting Subscriptions Pile Up

Pop quiz: how many subscriptions are you currently paying for? And I’m not just talking about Netflix. I mean all of them. Streaming services, music apps, fitness memberships, meal kits, cloud storage, gaming subscriptions, beauty boxes, software, premium app features. Go ahead, I’ll wait while you count.

Surprised by the number? Most people are. Subscriptions are sneaky because they’re usually small amounts that auto-renew, so you don’t really notice them. But $10 here and $15 there adds up to hundreds of dollars a month that’s disappearing from your account.

The Subscription Trap

The average person has about 12 paid subscriptions and spends over $200 a month on them. That’s $2,400 a year! And here’s the kicker: most people actively use only about half of what they’re paying for. The rest? Forgotten or “I’ll use it eventually.”

This is one of those money habits that will leave you broke because it’s death by a thousand paper cuts. No single subscription feels expensive enough to worry about, but together they’re draining your budget every single month.

The Subscription Audit

Time for a subscription audit. Go through your bank and credit card statements for the last three months and highlight every recurring charge. Make a list with the name, cost, and renewal date for each subscription.

Now be honest: which ones do you actually use regularly? Which ones add real value to your life? Cancel everything else. Don’t fall for the “but I might use it someday” trap. If you haven’t used it in the last month, you probably won’t.

For subscriptions you want to keep, consider switching to annual payments if they offer a discount. You’ll save money and reduce the mental clutter of multiple monthly charges. Just make sure to add those annual renewals to your irregular expenses list!

12. Avoiding Retirement Contributions

I know, I know. Retirement feels like a million years away, especially if you’re young or just starting your career. It’s so tempting to skip retirement savings when you’ve got student loans, rent, and a social life to fund right now. But avoiding retirement contributions is one of the most expensive mistakes you can make.

Here’s why: compound interest is basically magic, but it needs time to work. The earlier you start saving, the more your money grows. Waiting even five or ten years to start can cost you hundreds of thousands of dollars in the long run.

The Real Cost Of Waiting

Let’s look at some numbers. If you start investing $200 a month at age 25 with an average 7% return, you’ll have about $525,000 by age 65. Wait until 35 to start, and you’ll only have about $244,000. That’s a $281,000 difference from just waiting 10 years!

And if your employer offers a 401(k) match? Not contributing enough to get the full match is literally leaving free money on the table. It’s like getting a raise and saying “no thanks.” IMO, that’s just wild.

Getting Started With Retirement Savings

If your employer offers a 401(k) with a match, contribute at least enough to get the full match. This is your first priority. If they match 5%, contribute 5%. That’s an instant 100% return on your money.

Don’t have access to a 401(k)? Open an IRA (Individual Retirement Account). You can start with as little as $50 a month. Roth IRAs are great for younger people because you pay taxes now and get tax-free growth and withdrawals later.

Automate it. Set up automatic contributions from your paycheck or checking account. When it happens automatically, you don’t have to think about it or be tempted to skip it. Out of sight, out of mind, but definitely not out of your future bank account 🙂

13. Not Educating Yourself About Money

Here’s the thing nobody talks about enough: most people never learn how to manage money. It’s not taught in schools, parents often don’t discuss it, and we’re all just expected to figure it out on our own. The result? Millions of people making expensive mistakes simply because they don’t know any better.

Financial literacy is one of the most valuable skills you can develop, but it’s also one of the most neglected. Not understanding basics like budgeting, compound interest, credit scores, or investing doesn’t just limit your potential. It actively keeps you broke.

Why Financial Ignorance Is Expensive

When you don’t understand money, you’re vulnerable to everything from predatory lenders to bad investment advice to simple overspending. You might pay thousands in unnecessary fees, miss out on tax advantages, or fall for scams. You’re basically trying to play a game without knowing the rules.

Plus, financial stress is one of the leading causes of anxiety and relationship problems. Learning about money doesn’t just help your bank account. It improves your entire quality of life.

Building Your Financial Education

The good news? You don’t need a finance degree to get smart about money. Start by reading one personal finance book every few months. Some of my favorites are “I Will Teach You to Be Rich” by Ramit Sethi, “The Psychology of Money” by Morgan Housel, and “Your Money or Your Life” by Vicki Robin.

Follow a few reliable personal finance blogs or YouTube channels. There’s tons of free, high-quality content out there that breaks down complex topics into easy-to-understand language. Just make sure your sources are credible and not trying to sell you some get-rich-quick scheme.

Listen to money podcasts during your commute or while you’re doing chores. “The Dave Ramsey Show,” “ChooseFI,” and “Afford Anything” are all great options with different perspectives on money management.

Make learning about money a regular habit, even if it’s just 15 minutes a week. The more you know, the better decisions you’ll make, and the faster you’ll build wealth.

Your Next Steps

Don’t just read this and forget about it. Take action today. Right now, pick one habit from this list that you know is holding you back. Maybe you need to do that subscription audit or set up automatic transfers to your emergency fund. Whatever it is, do it today.

Then, set a reminder to check in with yourself in 30 days. How’s it going? What’s working? What needs adjustment? Building better money habits is a process, not a one-time event. Give yourself grace while you’re learning, but also hold yourself accountable.

And hey, if you want more tips on building better money habits, check out some resources on budgeting strategies, debt payoff methods, and smart saving techniques. The more you learn, the more empowered you’ll feel about your finances.

So tell me: which of these money habits are you going to tackle first? Drop a comment and let’s talk about it. Sometimes just saying it out loud (or typing it out) makes you more committed to actually doing it.

Remember, being broke isn’t a permanent condition. It’s usually just the result of habits that can be changed. You’ve got this. Now go make your money work for you instead of against you!

Final Thoughts

So there you have it. Thirteen money habits that will leave you broke if you let them. The good news? Now that you know what they are, you can start fixing them.

Here’s what I want you to remember: you don’t have to tackle all of these at once. That’s overwhelming and you’ll probably give up. Instead, pick one or two habits that resonate most with you and focus on those first. Maybe it’s building that emergency fund or finally creating a budget. Whatever it is, start there.

Small changes add up to big results over time. Saving an extra $50 a week doesn’t sound life-changing, but that’s $2,600 a year. Over ten years with some modest investment returns? You’re looking at $35,000 or more. All from small, consistent changes.

The key is being intentional with your money instead of letting it slip through your fingers. Every dollar you earn is a tool that can either work for you or against you. These habits? They make your money work against you. But when you flip them around and build better habits, your money starts working for you instead.