Many habits keep people poor, and it’s easy to think that being broke is all about how much money you have (or don’t have).
But the truth is most times, it’s not just about your income. It’s about your habits. How you spend, save (or don’t save), and plan (or don’t plan) all play a massive role in shaping your financial reality.
Financial experts will tell you that your money habits can either build your wealth or keep you stuck in the same cycle of struggle.
If you’ve been wondering why financial stability always seems out of reach, it might be time to look at the everyday choices that keep you from growing.
So, let’s talk about some of the biggest habits that might keep you broke—and, more importantly, how to overcome them.
12 Habits That Are Keeping You Poor
1. Living Beyond Your Means
Sometimes, we unintentionally live above our means. This means we spend way above what we earn, and our budget and total income don’t match our total earnings.
However, constantly trying to impress people by living above your means is a one-way ticket to financial frustration.
The problem isn’t always that you don’t earn enough; sometimes, you spend too much.
Fancy dinners, expensive clothes, the latest gadgets—none of these things are bad in themselves, but when they become the reason your bank account is always running empty, it’s time to rethink your spending habits.
So before you spend any other penny, ask yourself this simple question: do I need to pay this amount for this thing?
2. Not Budgeting
To a large extent, we are all guilty of not always budgeting our money, possibly due to impulse buying.
Money doesn’t disappear into thin air, even though it might feel that way sometimes. If you constantly wonder, Where did all my money go?, chances are, you’re not budgeting.
A budget isn’t about restricting yourself—it’s about controlling your finances.
When you don’t have a spending plan, you’re more likely to waste money on things that don’t matter, leaving you struggling when important expenses arise.
So start budgeting how you spend your money.
3. Ignoring Debt
Debt is one of those things that can sneak up on you.
One minute, you’re buying things on credit; the next, you’re drowning in bills and interest rates.
The worst part? Ignoring debt doesn’t make it go away; it only worsens things.
I can tell you this for free; I’ve been there.
Many people avoid looking at their debt because it feels overwhelming, but the longer you push it aside, the harder it becomes to get out of it.
So when you get money, you can spare, pay off your debt, and reduce the way your interest rate increases.
4. Not Saving for the Future
One of the habits that keeps you poor for a long time is not saving for the future.
There’s a false sense of security that comes with having a steady paycheck.
It’s easy to think, I’ll start saving later, or I don’t earn enough to save right now.
But here’s the harsh truth—if you don’t prioritize saving, there will never be a “perfect time” to start.
Life is unpredictable. Emergencies happen.
Opportunities come and go. If you’re not setting money aside—whether for an emergency fund, investments, or future goals—you’re setting yourself up for financial instability.
I learned this the hard way, so please do if you have to save just 10 percent of your earnings through a saving app or any other way.
5. Relying on One Source of Income
Depending on just one income stream is a financial risk most people don’t talk about enough.
If your entire financial stability is tied to one paycheck, what happens if that paycheck suddenly stops?
Having multiple income streams isn’t just for the ultra-rich—it’s a smart financial move providing security.
Who knows, what if you wake up to losing that particular source of income? It would be pretty devastating.
So, if you can diversify your sources of income, it could be through taking another job, learning a new skill, investing in stock, or venturing into a business.
By doing this, you’re not putting yourself at the edge of relying on just one source of income.
6. Avoiding Financial Education
You can’t grow beyond what you know. If you don’t understand how money works, it’s easy to make poor financial choices without even realizing it.
Many people avoid learning about personal finance because they think it’s complicated.
But the more you educate yourself on saving, budgeting, investing, and wealth-building, the more control you have over your financial future.
7. Procrastinating on Financial Goals
Do you know what keeps people broke?
Waiting for the “perfect time” to start making smart financial moves.
It’s easy to say that I’ll start saving next month, invest when I make more money, and clear my debt later, but it turns into never.
Time is your biggest asset when it comes to building wealth. The longer you wait, the harder it becomes.
8. Impulse Spending
Ever gone to the store for one thing and bought a whole cart of things you didn’t plan for?
That’s impulse spending in action. And while it might not seem like a big deal, those “little” unnecessary purchases add up fast.
Impulse spending drains your money before you even realize it.
It could be emotional spending, shopping out of boredom, falling for every sale, or constantly spending without thinking, a habit that can keep you broke.
9. Overvaluing Appearances
One of the major habits that make people keep people poor and broke is going above their capacity when it comes to appearance.
Let’s be honest—social media makes it way too easy to feel like you need to have the latest designer clothes, drive a certain car, or live in a certain kind of house.
But trying to look rich instead of building wealth is a losing game.
Many people spend money they don’t have just to maintain a certain image, but at the end of the day, the real flex is financial freedom—not a lifestyle you can’t afford.
Think about that.
10. Neglecting Your Health
Health and wealth go hand in hand.
If you constantly ignore your health and skip check-ups, eat poorly, or neglect exercise, you might be setting yourself up for huge medical bills down the line.
Many people think they “can’t afford” to care for their health, but you can’t afford NOT to.
Medical expenses can drain your finances faster than you think, so taking care of yourself now is one of the smartest financial moves you can make.
11. Not Setting Financial Goals
Money without direction disappears quickly.
If you don’t have clear financial goals, it’s easy to go with the flow, spending as you earn without thinking about the future.
12. Letting Fear Hold You Back
Sometimes, the biggest thing standing between you and financial success is fear—fear of taking risks, investing, and failing.
But growth doesn’t happen in your comfort zone.
If you’re too scared to take action, you’ll stay exactly where you are. What wealth do you want? It’s on the other side of your fear.
How To Break Free from Bad Money Habits
Changing the habits that keep people poor isn’t about making drastic overnight changes—it’s about making small, intentional shifts that add up over time.
Here’s where to start:
1. Determine where your money goes—track your expenses and create a budget.
2. Prioritize saving—build the habit, even if it’s a small amount.
3. Make a debt repayment plan—face it head-on instead of avoiding it.
4. Learn about money—read books, take courses, or follow finance experts.
5. Diversify your income—explore side hustles or investments.
6. Take action today—don’t wait for the “perfect time” to start making better financial decisions.
Wrapping Up
Breaking free from the habits that keep you broke or poor isn’t easy, but it’s worth it.
Your choices today will shape your financial future—so start making choices that set you up for success.
Start now.