I've noticed something interesting about money struggles: they tend to creep up on you.
One day, you're just trying to cover rent and your phone bill-no big deal. But before you know it, you're stuck in a cycle that feels downright impossible to break out of.
And that's what I want to talk about today. Because the truth is, many of us are chained down by habits we barely think about.
There was a time in my twenties when I was hustling like crazy. I was juggling multiple projects, scribbling down ideas for new startups, and spending weekends trying to crack the code of "financial freedom."
Even then, I kept catching myself falling back into certain routines that threatened to wipe out all my gains.
It took a serious wake-up call (let's just say maxing out a credit card I'd totally forgotten about) to make me realize how easy it is to sabotage your future with small, daily missteps.
Below are seven daily habits that can quietly keep us broke-and yes, I've been guilty of a few of these myself.
The good news is that habits can change, even if it's one small tweak at a time. Ready to dive in?
1. Not tracking your spending at all
Have you ever looked at your bank statement and thought, "Wait, where'd all my money go?"
I've been there-especially back in college when my go-to budgeting strategy was just glancing at the ATM balance once in a while. Not the smartest move.
Failing to track spending is like trying to lose weight without ever stepping on a scale or paying attention to what you eat. You end up with no clue what's really going on.
Before you know it, you've racked up late fees on bills you forgot to pay, or you're overdrawn on your checking account because you didn't realize how fast that daily latte habit was adding up.
As Charlie Munger once famously said, "The first rule of compounding: never interrupt it unnecessarily."
When you track your spending, you can either harness the power of compounding for good-through savings and investments-or let poor money management compound in the form of mounting debt.
2. Excessive reliance on credit cards
You know the old saying: "Buy now, pay later." It's tempting and oh-so-easy to swipe plastic whenever we want something.
Unfortunately, people who use credit cards are more likely to overspend because the psychological "pain" of parting with money isn't as sharp.
This can lead to a never-ending cycle of minimum payments and interest charges that keep you working just to stay afloat.
I remember the first time I got a credit card in my early twenties, and I felt like a rock star-until the bill arrived. Suddenly, I realized I'd spent way more than I should have.
The worst part? I didn't even remember half the little purchases I'd made.
It's not that credit cards are evil; it's that using them without a plan is a recipe for staying stuck in that lower middle class trap.
3. Avoiding any form of investment
Here at Small Biz Technology, I've sometimes stressed the importance of leveraging new tools or platforms to grow your business (or your personal finances). The same principle applies to investing.
Still, there's a widespread habit of people playing it "safe" by not investing at all-maybe because they find the stock market daunting or worry they lack the expertise.
Yet, inflation doesn't care about your fears. If your cash is just sitting in a regular checking account, it's effectively losing value every day.
According to historical data from the U.S. Bureau of Labor Statistics, inflation has averaged around 3% over the long run-enough to erode your money's purchasing power in a big way over time.
Warren Buffett put it bluntly: "If you don't find a way to make money while you sleep, you will work until you die."
That might sound dramatic, but the underlying message is spot on. If you avoid investing, you're guaranteeing that all your money-making power is tied solely to the hours you work.
4. Settling for "just enough" income
I'm a firm believer in the importance of multiple income streams. So many people stick to a single paycheck, and any shortfall or emergency drains their finances instantly.
One reason folks get stuck here is because they think extra income has to come from a massive side hustle or a second full-time job.
But these days, there are more low-effort options available-selling items online, freelancing for a couple of hours a week, doing small consulting gigs, or even renting out a spare room if you have one.
The habit of accepting "just enough" is sneaky because, on the surface, it seems logical. After all, you can get by, right?
But it stops you from exploring your true earning potential.
In my experience, you don't have to go overboard. Testing a small venture on the side can lead to a surprising bump in your monthly income-sometimes enough to finally pay off that lingering debt or save for a real estate down payment.
The difference between barely making rent and actually building a cushion for the future can boil down to a few extra hundred dollars a month.
5. Ignoring self-improvement
Jordan Peterson once emphasized, "Compare yourself to who you were yesterday, not to who someone else is today."
It's an idea that underscores why daily self-improvement is so crucial.
Ignoring personal development-be it professional skills, financial literacy, or emotional well-being-keeps you stuck.
You might hate your job but never learn the skills required for a better one. Or you might daydream about entrepreneurship but never take the time to study how to run a business effectively.
I've mentioned this before in another post, but investing in yourself is one of the highest-yield choices you can make.
Whether you're reading a book on negotiation, taking an online course in coding, or going to local business meetups, each new skill or connection nudges you one step beyond the limits of your current income bracket.
Neglecting self-improvement is effectively signing a lease to stay exactly where you are.
6. Consuming mindlessly and not creating
In an age of infinite scrolling and binge-watching, it's all too easy to slip into a passive consumer mindset.
I can't tell you how many evenings I've lost to mindlessly scrolling social feeds or falling down YouTube rabbit holes. And yes, sometimes we all need a break.
But the daily habit of purely consuming (media, entertainment, or even junk food) without creating anything of value or learning something new can keep you in financial quicksand.
Mindless consumption doesn't just burn time-it also burns money.
You see that shiny new gadget on your feed and can't resist hitting the "buy" button. Then you waste hours using it or reading about it or watching reviews of the next version you suddenly want.
In contrast, when you spend even a fraction of your free time creating-whether it's writing a blog post, designing a digital product, or learning a new skill-you plant seeds for potential income and growth.
It's the difference between letting the world's content shape you versus actively shaping your own destiny.
7. Delaying money talks until "tomorrow"
Procrastination is a universal vice; we all do it.
But with finances, tomorrow tends to become next week, then next month, and before you know it, you're still stuck with that nagging credit card debt or no clear plan for retirement.
Delaying important money decisions-like setting up an emergency fund, reworking a budget, or researching a better insurance policy-can cost you big time.
I've learned this lesson the hard way. There was a point where I knew I needed to set up a proper system for managing my freelance income and paying my quarterly taxes. But I kept putting it off-too busy, too tired, too whatever.
By the time I finally got around to it, I was already tangled up in penalties.
In essence, I paid a "procrastination tax," both financially and emotionally.
If you keep delaying those money talks-whether it's with yourself, your partner, or a financial advisor-you're practically handing over your financial future to chance.
Wrapping things up, but it's still a big deal...
All seven of these habits feed off each other and can leave you treading water in the lower middle class, never quite making progress.
The good news is that small steps go a long way. A bit of planning, a bit of tracking, a bit of investing-even a bit of hustle on the side-can compound into a radically different financial outlook.
And remember, if these habits are part of your daily life right now, you're not doomed. Habits are malleable. James Clear, in his book Atomic Habits, underscores the power of tiny 1% changes every day.
Start shifting one habit, and soon enough you'll see a domino effect on other areas of your finances-and your life.
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