THE HABITS THAT KEEP YOU BROKE —AND HOW TO BREAK THEM

 

“We first make our habits, then our habits make us.” —John Dryden

Everyone wants financial freedom. But not everyone is willing to examine the daily choices that keep them stuck in a cycle of survival instead of success.

If you feel like you’re always broke, struggling, or just never moving ahead — it’s not just your income…

It could be your habits. 

We all have financial goals, whether it's buying a home, traveling the world, or simply feeling secure about our future. Yet, for many, these dreams remain just that – dreams. Often, the culprit isn't a lack of income, but rather ingrained habits that subtly chip away at our financial well-being, keeping us stuck in a cycle of being broke. The good news? Habits can be broken and replaced with more empowering ones. 

Let’s get honest. These habits silently keep people broke — and when you break them, you open the door to financial growth.

💣 1. Living Paycheck to Paycheck (Without a Plan):

This is a telltale sign of a lack of budgeting and financial awareness. When your income immediately disappears each month with no clear understanding of where it's going, you're setting yourself up for financial stress.

 The Habit: Waiting for your salary to land and hoping you have enough to cover everything.

💡 How to Break It: Create a Budget. This doesn't have to be restrictive; it's about gaining control. Track your income and expenses. Use budgeting apps, spreadsheets, or even a simple notebook. Allocate funds for essential needs, savings, and discretionary spending. Knowing where your money is going is the first step to directing it where you want it to go.

💳 2. Ignoring Debt (and it’s Mounting Interest):2. 

Debt can feel overwhelming, making it tempting to avoid looking at statements or calculating interest. However, ignoring debt only allows it to grow, trapping you in a cycle of repayments.

 The Habit: Pretending your loans or credit card balances don't exist.

 💡How to Break It:  Face Your Debt Head-On. List all your debts, including interest rates and minimum payments. Prioritize high-interest debt for faster repayment. Explore strategies like the debt snowball or debt avalanche method. Consider consolidating or refinancing options if they make financial sense. Small consistent payments can make a big difference over time.

🛍️ 3. Impulse Buying and Emotional Spending:

That sudden urge for the latest gadget or a "treat yourself" shopping spree after a bad day can quickly derail your financial progress. These purchases often provide temporary satisfaction but lead to long-term regret.

 The Habit: Buying things you don't need, often driven by emotions or fleeting desires.

 💡How to Break it: Implement a Waiting Period. Before making a non-essential purchase, especially a significant one, give yourself a cooling-off period (e.g., 24-48 hours). Often, the urge will pass. Identify your emotional triggers for spending and find healthier ways to cope. Consider the "needs vs. wants" rule before any discretionary purchase.

💸 4. Not Saving Regularly (or at all):

Living solely in the present without allocating funds for the future is a recipe for financial vulnerability. Savings provide a safety net for unexpected expenses and are crucial for achieving long-term goals.

 The Habit :Spending all your income or only saving what's "left over" (which is often nothing).

💡 How to Break It: Pay Yourself First. Automate your savings. Set up recurring transfers from your checking account to a dedicated savings account on payday. Even a small percentage of each paycheck can accumulate significantly over time. Make saving a non-negotiable part of your budget.

📱5. Keep Up with the Joneses(or Social Media): 

Comparing your financial situation to others, especially on social media where people often present a curated version of reality, can lead to unnecessary spending and a feeling of inadequacy.

 The Habit: Feeling pressured to buy things or live a lifestyle to match what you see others doing.

💡 How to Break It: Focus on Your Own Financial Journey. Remember that everyone's financial situation is different. Define your own values and priorities. Unfollow or mute accounts that trigger feelings of envy or pressure to overspend. Gratitude for what you have is a powerful antidote to this habit.

☕️ 6. Ignoring Small Expenses (They Add Up!):

Those daily coffees, subscription services you barely use, and small impulse buys might seem insignificant individually, but they can collectively drain a surprising amount of money each month.

 The Habit: Not tracking or underestimating the impact of your small, recurring expenses.

 💡How to Break It: Track Your Spending Meticulously. For a week or two, record every single penny you spend. You might be surprised by where your money is actually going. Identify areas where you can easily cut back without significant sacrifice. Consider canceling unused subscriptions or finding cheaper alternatives.

📚 7. Lack of Financial Education (and Avoiding Learning):

Financial literacy is a crucial life skill, yet many people avoid learning about budgeting, investing, and managing their money effectively. This can lead to poor financial decisions and missed opportunities.

 The Habit:Feeling overwhelmed or uninterested in learning about personal finance.

 💡How to Break It: Commit to Continuous Financial Education. Start small. Read articles, listen to podcasts, or watch informative videos on personal finance. Explore topics like budgeting, saving, investing, and debt management. The more you understand how money works, the better equipped you'll be to make informed decisions and break free from being broke. Considering your past interest in finance, this might be an area you're already exploring!

Broke Habit: “I don’t need to learn about money — I just need more of it.”

The truth? If you don’t learn how to manage money, more money will only multiply your mistakes.

You can earn more and still stay broke if your mindset doesn’t change.

💡 Wealthy alternative:Commit to learning something new about money every week — saving, budgeting, investing.

Financial literacy is the real power.

💣 8.Spending Before Saving

 Habit: “I’ll save what’s left after spending.”

This habit guarantees there’s never anything left.

People who stay broke treat saving like an afterthought — not a priority.

💡 How to Break It:“I save first, then spend what’s left.”

Start small. Save 10% of every amount you get — no matter how little. Make saving a non-negotiable habit.

📝  9. Not Tracking Where Your Money Goes

Habit:  “I don’t know where it all went.”

If you don’t track your money, you’ll keep repeating the same financial mistakes blindly.

Most broke people don’t budget — they just guess.

💡 How to BreaIt: Track your spending weekly. Use a notebook or free app.

Knowing where your money goes puts you back in control.

🚗 10. Living to Impress Others

Habit: “I must look successful, even if I’m struggling.”

Buying what you can’t afford to impress people who don’t care is a trap.

Many people stay broke trying to “look rich.”

💡 How to Break It: Live below your means. Be proud to grow in silence.

Let your bank account, not your appearance, do the talking.

📚 11: Not Investing in Yourself

Habit: “I can’t afford to grow.”

People who stay broke avoid spending money on books, courses, or learning — yet they spend on entertainment and distractions.

💡 How to Break It: Start small: read personal growth books, attend free webinars, listen to podcasts.

Investing in yourself is the first step to unlocking your earning potential.

💣 12. Procrastinating on Money Decisions

Habit: “I’ll start saving or learning next month.”

Waiting for the perfect time keeps people broke for years.

Success comes from action, not delay.

💡 How to Break It: Start now — not next week. Even if it’s with just $10 or reading for 10 minutes.

Every step counts.

💣 13. Blaming Circumstances Instead of Changing Habits

Habit: “I’m broke because of my job, my family, my background.”

This mindset gives away your power. Yes, life can be unfair. But staying stuck is a choice.

💡 How to Break It:Take full responsibility.

Your background doesn’t define your future — your habits do.

Breaking these habits requires conscious effort and commitment. It won't happen overnight, but by identifying these pitfalls and implementing the suggested strategies, you can reprogram your financial behavior, build a solid foundation, and pave the way for a more secure and prosperous future. Start with one habit at a time, celebrate your small victories, and watch your financial situation gradually improve.

✨ Final Thoughts: Change the Habit, Change the Result

You don’t have to stay broke.

You don’t have to live in stress, paycheck to paycheck.

When you shift your habits, you shift your financial future.

It doesn’t happen overnight — but it starts the moment you decide.

So here’s the challenge:

📝 Pick 1 habit from the list and change it starting today.

Your future self will thank you.

🖋️ Written by Joan Nakagwe

(thejourney2wealth.blogspot.com)

Helping young entrepreneurs to break cycles, build confidence, and rise to financial freedom — one habit at a time.