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7 Money Habits That Keep You Poor

I am an investor who has turned my life around by getting out of debt, reading books and taking courses on financial education.

Don't fall into these bad money habits

Don't fall into these bad money habits

The financial behaviors that keep you poor are the lies that you tell yourself every time you are facing the truth about your financial situation.

Below you'll find the 7 most common financial beliefs that keep you from getting your finances in order:

  • I don't have enough money to start saving
  • Retirement is so far, so why bother saving today
  • I'm too old
  • I'm not good at saving money
  • I like to buy things
  • Social security will take care of me
  • Investing is too risky

Does this sound like you? If so, you are bluntly lying to yourself, and not allowing yourself to reach full financial success. So let's delve deeper into these lies so that you can take a more proactive approach to ameliorating your financial situation.

Make the most of your earnings by following the below tips

Make the most of your earnings by following the below tips

1. I Don't Have Enough Money To Start Saving

Living paycheck to paycheck and not saving enough money is not sustainable.

It can be difficult to start saving when you don't have much money, but it's not impossible.

There are a variety of ways to save money when you're financially strapped.

For instance, you could sell your old clothes, rent out a room in your house, start selling some of the things you make on Etsy or the internet.

You can also start saving by finding creative ways to get more value for the things you buy.

2. Retirement Is So Far Away, Why Bother To Save Now?

Many people are putting off saving for their retirement because they know it is far away, and they don't want to be worried about what they will do when they retire.

They put off saving until the last minute or even stop saving altogether.

This is dangerous because it makes your retirement funds less likely to grow and you most likely end up being poor, with the end result of retiring with no money saved.

Retirement is a long way off and saving now would be very beneficial later on.

It's a lot easier to save when you're young and you have time to set up an investment account or contribute more each month to your 401K.

If you start saving now and invest, your money will grow faster and will make a big difference in the time it takes you to retire.

3. I’m Too Old To Save For Retirement

You’re not too old to save for retirement.

As a matter of fact, it’s not too late to start saving for retirement even if you’re over 50.

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The sooner you start, the better off you’ll be in the long run.

You can still get a nice return on your savings, even if it takes a few years to set up an investing plan.

If you start saving early, your money will grow faster than you imagined

If you start saving early, your money will grow faster than you imagined

4. I'm Not Good At Saving Money, So Why Bother?

Saving money can seem like a daunting task, especially if you're not the best at it. However, many people find that saving money is actually fairly easy.

It simply takes planning and patience.

Often times, the easiest way to save money is to set a fixed amount of money each month that you want to save and then just stick to it.

Set up automatic transfers from your checking to your savings account at the beginning of each month.

You might also find it helpful to compare your current spending.

Make a budget. To start saving money, you first need to know how much you're spending each month. This will also show you where your money is going and help you to set goals for further work on your finances.

How to Budget Your Money For Beginners

5. But I Like To Buy Things, They Make Me Feel Better About Myself!

Spending too much on things that don't matter is one of the most common mistakes in life.

Often times people spend money on things they don't really need in order to feel better or to achieve a sense of accomplishment.

It can be difficult to save money when you have a bad habit of overspending.

Furthermore, people prefer to spend money using credit cards because they are convenient and easy to make purchases without carrying cash.

However, with this ease of use comes the risk of overspending.

It is therefore important to avoid buying things that don't matter on credit cards because it can be easy to fall into debt.

Turn your addiction to shopping into a healthier "addiction" to saving!

Turn your addiction to shopping into a healthier "addiction" to saving!

6. I Don’t Need To Save For Retirement Because Social Security Will Take Care Of Me

Retirement is a common goal for many people. However, there are many factors that need to be considered when planning for retirement.

For example, how much money will you need to retire?

Social Security is a system created to help individuals pay for their basic needs and provide them with some degree of financial security, but it might not be enough to cover all the expenses and provide a comfortable lifestyle.

It could be difficult for seniors to sustain without having any other sources of income.

Fortunately, there are many different types of retirement savings plans.

Some people choose to save for retirement by investing in stocks, bonds, and other financial instruments using a 401k plan, Roth IRA, SEP IRA, etc.

7. I Don't Want To Invest My Hard-Earned Money, It’s Too Risky

There are mutual funds, stocks, bonds, options and more, but with so many options out there, how do you decide what's right for you?

There are many different types of investments out there, but before you decide on one, you should understand how they work and what the risk factors are.

Getting better acquainted with your investment options will help you make a more informed decision.

You can take an investing course at your local community college or even online. Or you can turn to financial advisers who will help you find the options that fit your situation.

The key to finding the right investment vehicle is to identify what type of asset you would like to hold.

If you are afraid of stocks, there are safer ways to invest

If you are afraid of stocks, there are safer ways to invest

Financial Misconceptions Are What Keep You From Being Financially Stable!

If you want to change your life, you have to break these destructive habits and find ways to save more money.

You need to create a budget, figure out how much you'll need each month and save up in order to be financially stable and successful in life!

Stop living paycheck to paycheck and start building wealth over time!

This article is accurate and true to the best of the author’s knowledge. Content is for informational or entertainment purposes only and does not substitute for personal counsel or professional advice in business, financial, legal, or technical matters.

© 2022 Alex Farris

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