Bad money habits can wreck your finances before you even see them coming. We understand! Two months into marriage, we were flat broke, in debt, living paycheck to paycheck, and digging in the couch cushions for change.
But, once we started spotting the habits, quietly draining our bank account, everything began to shift.
That’s why we’re sharing the 10 bad money habits that kept us broke for years — so you can spot them in your own life, kick them to the curb, and move forward a whole lot faster than we did.
Impulse Buying
Bad money habits love to show in the form of impulse buys. When we first married, when Larry saw something shiny, he wanted it now. No waiting, no price-checking, no asking if it was in the budget — just swipe and smile.
I, on the other hand was a total deal-hunting ninja. I wouldn’t even think about buying something unless it was on sale, had a coupon, and possibly a rebate… all stacked together.
After a few “lively” discussions, we found our groove: plan ahead, research, and don’t buy anything until we both agreed it was the right time and the right price.
Not Prioritizing Our Money
Another one of those bad money habits? Letting your money run wild without giving it any direction. We used to save “whatever was left over at the end of the month”.
Often, after paying bills (and whatever else we wanted), there were only a few dollar left over. But, it wasn’t because there wasn’t enough income. It was because we had no specific financial goals and, thus, didn’t make saving money a priority.
We fixed that problem. Here’s how we explain our system for saving: treat your money like a teenager.
Before it leaves the house, ask it the tough questions — Where are you going? Who are you with? What time will you be back? If you’re not tracking where your money’s going, it’s going somewhere — you just won’t like where it ends up.
When we finally started telling our dollars what to do (instead of wondering where they went), that’s when things started to turn around.
Thinking Poverty Was Our Destiny
This one hits hard. For a while, we just believed we were meant to be broke. That’s a lie. And when you believe the lie, you stop fighting. We changed our mindset, looked each other in the eye, and decided, “Nope. We’re going to figure this out.”
You’re not stuck unless you decide to stay stuck. Change your money mindset, and you can change your life. Yes, even on a low income, you can save money.
Not Thinking Ahead
One of the sneakiest bad money habits isn’t about spending at all — it’s about what’s going on in your head. For a while, we honestly believed being broke was just… our reality. Like, maybe we were just “those people” who’d never get ahead.
But here’s the truth: you’re not stuck unless you decide to stay stuck. You have to plan for expenses before they hit!
Two months into marriage, we were flat broke, in debt, living paycheck to paycheck, and scraping together loose change just to make it to payday. But one day, I looked Larry straight in the eye and said, “We’re smart. We’re capable. We’re going to figure this out.”
And we did — not because it was easy, but because we refused to believe this was as good as it gets.
Mindset matters. The words you speak about your finances? They shape your choices. So ditch the “we’ll never get ahead” self-talk. That kind of thinking is expensive.
Assuming Your Income Will Go Up
One of the most dangerous bad money habits? Banking on future income that doesn’t exist yet.
Back when we were house hunting, a realtor showed us a home that was way out of our price range. When we raised an eyebrow, she smiled and said, “Oh, don’t worry — your income will go up!”
Spoiler: we did not keep working with that realtor.
Even if your income does go up, prices are going up too — groceries, gas, housing, all of it. The numbers don’t always work in your favor. And banks? Don’t get us started. They’ll loan you way more than you should actually borrow.
Larry looked at the number the bank was willing to lend us and said, “I wouldn’t loan me that much money.”
We ended up buying a smaller home we could actually afford — and guess what? We paid it off early. Don’t make decisions based on money you hope to have. Make decisions based on what you actually have right now.
Comparing Yourself to Other People
Comparison is a thief — not just of joy, but of your bank account. We’ve spent money we didn’t have trying to impress people who… weren’t even paying attention.
Buying more stuff (or even making more money) is highly unlikely to change their general opinion of you. Don’t base your values or goals on the opinions of people who lack the ability to see others as more than a set of numbers.
Here’s the truth: if someone doesn’t respect you because of what you don’t own, they’re not going to respect you more because of what you do. People are usually way too busy thinking about their own stuff to care about yours.
Buying things to “keep up” is like running a race with no finish line. It’s exhausting, expensive, and totally unnecessary. Live on your terms — not someone else’s timeline or highlight reel.
Buying to Cope
Raise your hand if you’ve ever tried to fix a bad day with a “treat yourself” purchase. (Yeah… us too.) It’s one of those sneaky bad money habits that feels like self-care in the moment — until 30 days later when the credit card bill hits.
Does this feel familiar?
- Happy? Buy something.
- Sad? Buy something.
- Frustrated? Add to cart and do it aggressively.
We used to justify little purchases as harmless pick-me-ups. But the truth is, we were using money to manage emotions. And while it did feel better… it only lasted until the newness wore off — or the payments kicked in.
The real kicker? Credit card companies are making billions (with a B!) off of that emotional spending. In 2022 alone, Americans paid $14.5 billion in late fees. Not interest — just fees. That’s a lot of retail therapy hangovers.
We had to learn other ways to cope that didn’t involve our wallets.
Refusing to Consider Alternatives
We never thought secondhand meant second class — but we definitely knew people who did. They wouldn’t dream of walking into a thrift store. “New” was their one and only go-to, and paying full price? Totally normal.
But here’s the deal: refusing to even consider alternatives — whether that’s shopping secondhand, using coupons, or waiting for a sale — is one of those bad money habits that can quietly drain your bank account.
We’ve saved thousands over the years by simply being open to doing things differently. Shopping secondhand. Comparing prices. Even just waiting a few weeks for a sale. Small changes, big payoff.
The truth? Choosing the smart option over the shiny one doesn’t make you cheap — it makes you strategic. And if it’s good enough for millionaires (many of whom do hunt for deals), it’s good enough for us.
Being Inflexible
Once you finally set a budget or a goal, there is one temptation which may completely sideline that goal if you aren’t helpful – inflexibility. You become determined to stick to it, no matter what. That’s great… until it’s clearly not working and you’re still trying to force it.
We’ve been there. Setting a goal, sticking to it like gorilla glue, and refusing to move — even when the numbers were basically screaming at us to change something. It took us a while to realize: being inflexible doesn’t make you more disciplined or even more determined… it just makes things harder.
Every Sunday night, we sit down for our budget meeting. We look at how things went, what’s coming up, and whether the plan still makes sense. Sometimes it does. Sometimes we flex.
Flexing isn’t failure. It’s smart. It means you’re paying attention. Prices change. Life shifts – and your budget needs to move with it. We’re not saying throw your goals out the window — just don’t crash the car trying to stick to a map that no longer matches the road conditions in front of you.
Ignoring the System
Early in our marriage, when we were flat broke, one of the first things we did was build systems. Simple, repeatable, rinse-and-repeat routines that helped us stick to our budget and slowly build a little margin. It wasn’t fancy — but it worked.
Systems give you a roadmap. They take the decision fatigue out of budgeting. You already know what to do, when to do it, and how much to spend — no willpower required.
The truth is, motivation comes and goes. But a solid system? That’s what keeps you moving when you’re tired, discouraged, or just not in the mood to think about money again. Set it up once, tweak it when needed, and let the system do the heavy lifting.
Your Turn
Which of these bad money habits have you wrestled with — or finally kicked to the curb? Or is there one not on this list that’s tripped you up? We’d love to hear your thoughts in the comments!
The one I’m dealing with now is increasing the food budget. I’ve been keeping it steady by changing what we eat, but as the prices keep going up we have to spend more to just maintain our current budget grocery list. All non food household items are included and they have increased too. Gratefully, our income recently went up a bit, so it’s totally doable, just feels a bit painful to hand over a few extra dollars.
We totally agree. Pivoting is the name of the game – especially right now.