6 Money Habits That Keep You Broke (And How to Fix Them)

Let’s be real—handling money isn’t just about making it, it’s about keeping it and making it work for you. But a lot of us fall into small money traps that, over time, keep us stuck in the same financial rut. If you’re wondering why you’re not making progress with your finances, chances are you might be making one (or more) of these mistakes. Let’s talk about it.

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1. Putting Your Savings Last

Ever feel like no matter how much you try to save, there’s just never enough left at the end of the month? That’s because most of us do it backward.

• Paying yourself last – This is the default for most people. You get your paycheck, pay rent, utilities, subscriptions, and social plans, and then—if there’s anything left—you save. But let’s be honest, there’s rarely anything left.
• Paying yourself first – Flip the script. Take 10% (or whatever percentage works for you) and put it straight into savings before paying for anything else. Treat it like a non-negotiable bill. You’ll be surprised at how quickly you adjust to budgeting around what’s left while still building your savings in the background.

If you’re looking for a smart way to save and grow your money, SoFi offers high-yield savings accounts that make saving effortless while earning interest. It’s an easy way to put your money to work while you focus on improving your finances.

2. Using Credit Cards Like Free Money

Here’s a rule I live by: if I wouldn’t buy it in cash, I shouldn’t be buying it on credit.

It’s way too easy to swipe for everything—subscriptions, takeout, clothes, furniture—without realizing how fast that balance racks up. The problem? Interest fees will eat you alive if you’re not careful. Instead of relying on credit for things you want, save it for things you need and can pay off immediately.

If you’re looking to build your credit responsibly, SoFi also has credit card options that offer rewards and financial tools to help you stay on top of your spending without falling into debt traps.

3. Not Having a Real Emergency Fund

Life happens. Your car breaks down. Your job situation changes. You get hit with a medical bill out of nowhere. If you don’t have savings, you’ll be forced to rely on credit or loans, which only makes things worse.

A good rule of thumb? Have three to six months’ worth of expenses set aside for emergencies. It might take time to build, but even a small cushion gives you peace of mind and keeps you from financial panic when the unexpected happens.

If you want to make sure you’re saving consistently, setting up automated transfers with SoFi can help keep you on track without even thinking about it.

4. Not Tracking Where Your Money Goes

Ever check your bank account and wonder, Where did all my money go? That’s lifestyle inflation—spending more just because you’re making more, without realizing it.

Tracking your money isn’t about restricting yourself—it’s about awareness. Think of it like running a business. Successful companies track every dollar to stay profitable, and you should do the same. Set a budget, check your bank statements regularly, and make adjustments when needed.

5. Spending Just Because You Can

I love shopping, dining out, and traveling, just like anyone else. But I also love not being broke. That’s why I stick to the 50-30-20 rule:

• 50% for needs (rent, groceries, gas, healthcare, etc.)
• 30% for wants (shopping, entertainment, dining out)
• 20% for savings & investments (I personally split this into 10% savings and 10% investments)

This lets me enjoy my money without the stress of living paycheck to paycheck.

6. Thinking Saving Alone Will Make You Rich

Saving is important, but it’s not enough. If you’re only saving and not growing your income, you’re just stockpiling money without making it work for you.

The real financial glow-up happens when you save and increase your income at the same time. That could mean asking for a raise, starting a side hustle, or investing wisely. More income plus consistent saving? That’s how you build real wealth.

If you’re looking to start a side hustle or grow an online business, platforms like Shopify make it easy to set up an online store and create a new stream of income. Whether you’re selling products, dropshipping through Auto DS, or offering services through Fiverr, having an extra source of income can help you feel more financially secure while still enjoying the things you love.

Final Thoughts

Improving your finances isn’t about being perfect—it’s about making small, consistent changes that lead to real progress. If you’ve made some of these mistakes before, don’t stress. The good news is, you have the power to turn things around.

Start by taking one step at a time. Pay yourself first, track your spending, build a safety net, and find ways to grow your income. It won’t happen overnight, but every small move you make is a step toward financial freedom.

You’ve got this. Your future self will thank you!