6 Poor Money Habits Holding You Back From Wealth and Success
Are you tired of working the same job you’ve sworn to quit countless times? You might be stuck in a rut — and your more successful friends have noticed. You might envy their Saturday morning hikes and large retirement accounts, but it might simply be a result of not approaching problems or opportunities like they do.
If you’re wondering what your successful friends are thinking about the way you manage work and money, here's what they’re not telling you.
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1. You Don’t Save Enough
Bad news for those dreaming of retirement: Most of us won’t be retiring in style if we rely solely on Social Security benefits. In 2026, the average monthly Social Security check is just over $2,000 per month for retirees. So, what can you do to prevent tarnished golden years?
Utilize your workplace retirement plan and take advantage of your employer’s matching program, said consumer finance expert Kevin Gallegos, vice president of Phoenix operations for Freedom Financial Network. Gallegos recommended saving 10% to 15% of your gross pay for retirement. If you can’t swing that, just start with what’s manageable for you.
2. You Have Too Much Credit Card Debt
The financially savvy see credit cards as a convenience, not a debit account. If you carry a high balance month to month and have high interest rates, you’re paying a premium for the same purchases your debt-free friends make.
Dodge debt and avoid carrying balances month to month except in emergencies. “Few, if any, investments will return as much,” Gallegos said. “Having no credit card debt provides a financial cushion itself.” If you’re having trouble doing this, you can consider some ways to avoid or get out of credit card debt.
3. You Don’t Invest
Chances are you think you can’t invest because you don’t have the money. But what if you don’t have the money because you don’t invest?
Passive income is a key differentiating factor between financial struggles and financial success, and investments like low-cost index funds, retirement accounts or diversified investments don’t have to break the bank.
If speculation isn’t your game and entrepreneurship isn’t your bag, invest what you can in small business — either way, investing makes your money work for you.
4. You Live Above Your Means
Simple frugality is key. Some of the richest people on earth recognize that living below your means is essential to financial sustainability. Bill Gates, for instance, famously said, “I can understand wanting to have millions of dollars, there’s a certain freedom, meaningful freedom, that comes with that. But once you get much beyond that, I have to tell you, it’s the same hamburger.”
5. You Lack an Emergency Fund
Life has a nasty habit of throwing curveballs in the form of emergency car repairs and unexpected medical bills, among other unwanted surprises. When you’re suddenly treading financial water, your friends are looking on from the life raft and lamenting your lack of financial foresight.
Instead of drowning in new debt, listen to Kate Holmes: Whether it’s a job layoff or worse, you want to ensure you can cover all necessary expenses for three to six months.
6. You’re Procrastinating
Ultimately, patience and planning are two of the most crucial habits of rich people. Consistently managing your finances, saving and investing won’t immediately fill your bank account; they’ll expand your balance slowly and steadily over time, like the tortoise who eventually wins the race.
If you didn’t start taking advantage of compound interest when you were 18, don’t give up. Start saving, investing and planning now.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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