Do you ever wonder why it feels like you’re always struggling with money despite doing your best to save? Sometimes, it’s not the big expenses but small, unnoticed habits that silently drain our finances. Here’s a look at 10 surprising money habits that might be keeping you broke — and how to turn them around for financial success!

1. Impulse Shopping on “Small” Items

We all know the satisfaction of grabbing a quick coffee, a magazine, or a snack on the go. Individually, these purchases seem small and harmless. But consider this: if you spend $5 daily on coffee, that’s $150 a month — nearly $2,000 a year!

How to Fix It: Set a monthly limit for these “small” indulgences or try brewing coffee at home. Financial advisor Dave Ramsey famously calls these unplanned expenses “money leaks.” Plugging these leaks is often the first step to achieving financial freedom.

2. Keeping Subscriptions You Don’t Use

Between Netflix, Spotify, gym memberships, and other monthly subscriptions, it’s easy to lose track of what we’re actually using. According to a study by West Monroe, 84% of Americans underestimate what they spend on subscriptions, often by hundreds of dollars.

How to Fix It: Take stock of all your subscriptions. Cancel any that don’t add significant value. If you use Netflix only once a month, consider renting individual movies instead. Apps like Truebill can help by identifying unused subscriptions, saving you money with a few clicks.

3. Relying on Credit Cards for Emergencies

Credit cards can be useful, but relying on them for emergencies can be risky. If an unexpected expense arises and you have no savings, using a credit card with high interest will cost more in the long run.

How to Fix It: Build an emergency fund, even if it starts small. Setting aside as little as $25 a week can help build a fund to handle emergencies, making it easier to avoid high-interest debt.

4. Not Negotiating Your Bills

Many people don’t realize they can negotiate common bills like phone, internet, or even credit card interest rates. In 2019, a consumer advocate shared his story of negotiating down his internet bill by simply asking, saving himself $20 monthly.

How to Fix It: Take the time to call your service providers and ask for a better rate. Mention loyalty if you’ve been with them for a while, or check out competitors’ rates to leverage a better deal.

5. Focusing on Income Instead of Net Worth

We often focus on how much we earn rather than how much we keep and grow. For example, Mark and Sarah both make $60,000 a year, but Sarah has a net worth twice as high because she invests wisely and avoids debt.

How to Fix It: Track your net worth, not just your income. Look for ways to build assets (like investments) and reduce liabilities (like debt). Apps like Personal Capital make it easy to track net worth and provide a clear picture of financial health.

6. Living Above Your Means

It’s tempting to upgrade to a more expensive car, phone, or house, especially when others around you seem to be doing it. But living paycheck to paycheck to fund a high-cost lifestyle can prevent you from building real wealth.

How to Fix It: Practice living within or even slightly below your means. Challenge yourself to find joy in what you already have and remember: financial success is about having more choices, not more things.

7. Ignoring Your Credit Score

Your credit score affects many things, from loan approvals to interest rates on mortgages. Unfortunately, many don’t pay attention to it, especially if they don’t plan to take out a loan. This oversight can cost more than expected over time.

How to Fix It: Check your credit score regularly using free resources like Credit Karma. If it’s low, work on improving it by paying bills on time and reducing credit card balances. A good credit score can save you thousands in interest on loans.

8. Shopping for Status

Purchasing to “keep up with the Joneses” can be a major money drain. Whether it’s buying the latest iPhone or designer clothes, overspending to fit in often leads to financial stress. A recent study found that 60% of Americans feel pressured by social media to overspend on things they don’t need.

How to Fix It: Practice mindful spending. Before making a purchase, ask yourself if it’s something you really need or if you’re buying it to impress others. Remember, financial independence is more rewarding than temporary approval from others.

9. Not Automating Savings

Saving what’s “left over” at the end of the month rarely leads to substantial growth. Automating your savings allows you to build wealth steadily without thinking about it.

How to Fix It: Set up an automatic transfer to your savings account every payday. You’ll be surprised at how quickly this builds up over time. Warren Buffett often emphasizes that “you should save first, then spend what’s left,” not the other way around.

10. Ignoring Investment Opportunities

Many people fear investing due to perceived risks or a lack of knowledge. But leaving all your money in a low-interest savings account won’t grow your wealth. Consider the example of someone who invests $100 monthly in an S&P 500 index fund, which historically returns about 7% annually. Over 20 years, that adds up to over $52,000, thanks to compound interest.

How to Fix It: Start small, if necessary, by learning about investment basics. Apps like Robinhood and Acorns make investing more accessible than ever, even for beginners.

*Breaking out of these habits may take time, but each small change has a big impact on your financial future. Remember, financial success isn’t about how much you make but about how well you manage it. By identifying and changing these habits, you’re already on your way to building a stronger financial foundation.*