I’ve realized something about money problems: they often sneak up on you without warning.
One day, you’re just trying to pay rent and your phone bill—nothing too serious. But before you know it, you’re trapped in a cycle that feels impossible to escape.
That’s what I want to discuss today. The truth is, many of us are held back by habits we don’t even realize we have.
When I was in my twenties, I was working nonstop. I was managing multiple projects, coming up with ideas for new businesses, and spending weekends trying to figure out how to achieve “financial freedom.”
Even then, I kept slipping into routines that could have ruined all my progress. It took a big wake-up call (like maxing out a credit card I’d forgotten about) to understand how small, everyday mistakes can sabotage your future.
Below are seven daily habits that can quietly keep us broke—and yes, I’ve been guilty of some of these too.
The good news? Habits can change, even if it’s just one small step at a time. Ready to get started?
1. Not tracking your spending at all
Have you ever checked your bank account and wondered, “Where did all my money go?”
I’ve been there especially in college when my idea of budgeting was just checking my ATM balance every now and then. Not the best strategy, I admit.
Not tracking your spending is like trying to lose weight without ever weighing yourself or paying attention to what you eat. You end up completely in the dark about where your money is going.
Before you realize it, you’re hit with late fees for bills you forgot to pay, or your bank account is overdrawn because you didn’t notice how quickly small expenses, like daily coffee runs, add up.
As Charlie Munger once said, “The first rule of compounding: never interrupt it unnecessarily.”
When you track your spending, you can either use the power of compounding to your advantage through savings and investments or let poor money habits lead to growing debt.
2. Excessive reliance on credit cards
You’ve probably heard the saying: “Buy now, pay later.” It’s tempting and incredibly easy to swipe a credit card whenever you want something.
But here’s the catch: people who use credit cards tend to overspend because they don’t feel the immediate “pain” of parting with cash.
This can trap you in a cycle of making minimum payments and dealing with interest charges, leaving you working just to keep up.
I remember getting my first credit card in my early twenties and feeling like a rock star—until the bill came. Suddenly, I realized I’d spent way more than I could afford.
The worst part? I couldn’t even remember half the small things I’d bought.
Credit cards aren’t the problem it’s using them without a plan that keeps you stuck in a financial rut.
3. Avoiding any form of investment
At Small Biz Technology, I’ve often emphasized the importance of using new tools or platforms to grow your business or personal finances. The same idea applies to investing.
However, many people play it “safe” by avoiding investing altogether—often because they find the stock market intimidating or feel they don’t have enough knowledge.
But here’s the thing: inflation doesn’t care about your fears. If your money is just sitting in a regular checking account, it’s slowly losing value every day.
According to historical data from the U.S. Bureau of Labor Statistics, inflation has averaged around 3% over the long term—enough to significantly reduce your money’s purchasing power over time.
As Warren Buffett famously said, “If you don’t find a way to make money while you sleep, you will work until you die.”
That might sound extreme, but the message is clear. If you don’t invest, you’re limiting your financial growth to only the hours you work.
4. Settling for “just enough” income
I strongly believe in the power of having multiple income streams. Many people rely on a single paycheck, and when an unexpected expense or emergency comes up, their finances take a hit.
One reason people stay stuck in this cycle is the belief that earning extra income requires a huge side hustle or a second full-time job.
But today, there are plenty of low-effort options like selling items online, freelancing a few hours a week, taking on small consulting gigs, or even renting out a spare room if you have one.
The habit of settling for “just enough” is tricky because, on the surface, it seems reasonable. After all, you’re getting by, right?
But this mindset keeps you from reaching your full earning potential.
From my experience, you don’t need to go all out. Trying a small side venture can lead to a surprising boost in your monthly income sometimes enough to pay off lingering debt or save for a down payment on a house.
The difference between barely covering rent and building a financial cushion often comes down to just a few hundred extra dollars each month.
5. Ignoring self-improvement
Jordan Peterson once said, “Compare yourself to who you were yesterday, not to who someone else is today.”
This idea highlights why daily self-improvement is so important.
Ignoring personal growth whether it’s professional skills, financial knowledge, or emotional well-being keeps you stuck in the same place.
You might dislike your job but never learn the skills needed for a better one. Or you might dream of starting a business but never take the time to learn how to run one effectively.
As I’ve mentioned before, investing in yourself is one of the best decisions you can make.
Whether you’re reading a book on negotiation, taking an online coding course, or attending local business meetups, each new skill or connection moves you one step closer to breaking free from your current financial limits.
Neglecting self-improvement is like signing a lease to stay exactly where you are—and that’s a trap worth avoiding.
6. Consuming mindlessly and not creating
In today’s world of endless scrolling and binge-watching, it’s easy to fall into a passive consumer mindset.
I’ve lost count of how many evenings I’ve spent mindlessly scrolling through social media or getting lost in YouTube rabbit holes. And sure, sometimes we all need to unwind.
But the habit of constantly consuming; whether it’s media, entertainment, or even junk food without creating something valuable or learning something new can keep you stuck in financial quicksand.
Mindless consumption doesn’t just waste time it also wastes money.
You see a shiny new gadget online, can’t resist buying it, and then spend hours using it, reading about it, or watching reviews of the next version you suddenly want.
On the other hand, when you spend even a small part of your free time creating whether it’s writing a blog post, designing a digital product, or learning a new skill you’re planting seeds for future income and growth.
It’s the difference between letting the world’s content shape you and actively shaping your own future.
7. Delaying money talks until “tomorrow”
Procrastination is something we all struggle with.
But when it comes to finances, putting things off until “tomorrow” often turns into weeks, then months, and before you know it, you’re still dealing with that lingering credit card debt or have no clear plan for retirement.
Delaying important financial decisions like setting up an emergency fund, revising your budget, or finding a better insurance policy can end up costing you dearly.
I’ve learned this the hard way. There was a time when I knew I needed to set up a system for managing my freelance income and paying my quarterly taxes, but I kept putting it off too busy, too tired, too distracted.
By the time I finally took action, I was already facing penalties. In short, I paid a “procrastination tax,” both financially and emotionally.
If you keep postponing those important money conversations whether with yourself, your partner, or a financial advisor you’re essentially leaving your financial future up to chance.
Conclusion
All seven of these habits are interconnected and can keep you stuck in the lower middle class, constantly struggling to make progress.
The good news? Small steps can make a big difference. A little planning, tracking, investing, or even a small side hustle can add up over time and completely change your financial situation.
And if these habits are part of your life right now, don’t worry; you’re not doomed. Habits can change. As James Clear explains in his book ‘Atomic Habits’, even tiny 1% improvements each day can lead to significant results over time.
Start by changing one habit, and soon you’ll see a ripple effect that improves other areas of your finances and your life.