Ever wondered why some people have what is considered a good job but still live paycheck to paycheck?
It’s a frustrating reality that many people face, despite working hard and earning a steady income.
Could it be the cost of living, or maybe personal spending habits?
Today we dive into 6 behaviors that tend to keep people stuck in this cycle, despite their best efforts.
How many of these behaviors do you recognize in yourself?
Let’s find out:
1) Making impulse purchases
Do you ever find yourself scrolling through social media, only to end up buying something you didn’t plan on?
You’re not alone.
According to research, 48% of social media users admit to making an impulse purchase because of something they saw online—what’s worse 68% of them regretted at least one of those purchases.
Even more shocking, in the 12 months between 2022 and 2023, Americans spent a staggering $71 billion on impulse buys.
That’s right—billions!
If you’ve fallen into this trap, don’t worry, you can take back control with a few simple strategies.
- Limit social media usage: The less time you spend exposed to tempting ads, the less likely you’ll fall for them.
- Wait before buying: Give yourself 24 hours before committing to a purchase. Often, that time gives you the clarity to decide if it’s really worth it.
- Unsubscribe from marketing emails: Retailers know how to lure you in with flashy discounts and limited-time offers. By unsubscribing from marketing emails, you reduce the temptation to buy things you don’t really need. Out of sight, out of mind!
2) Making impulse purchases
Warren Buffett once said, “Do not save what is left after spending; instead spend what is left after saving.”
Shifting this mindset is crucial to building long-term financial security.
I used to struggle with this myself.
Each month, I planned to save, but by the time I covered expenses and indulged in a few non-essentials, there was little left.
It’s an easy trap—using what’s available and hoping there’s enough to save later.
But when saving takes a back seat, it rarely happens.
To flip this pattern, treat saving as a fixed expense, just like your rent or mortgage.
Automating a set percentage of your income into a savings account before spending on anything else forces you to prioritize your financial goals.
This simple shift ensures that saving becomes the first priority, not an afterthought.
3) Trying to keep up with the Joneses
So, let’s say your neighbor or colleague gets a new car, the latest iPhone, or some other shiny upgrade.
Be honest—do you feel a twinge of pressure to keep up?
It’s natural to want what others have, but falling into this comparison trap can be financially destructive.
The “keeping-up-with-the-Joneses” mentality has been around for ages, but social media has made it worse.
Now, we’re not just comparing ourselves to our immediate circle—we’re comparing ourselves to an endless stream of people flashing their newest purchases, vacations, and lifestyles online.
This constant exposure fuels the need to measure up, often at the expense of your financial well-being.
As clinical psychologist Jordan Peterson advises, “Compare yourself to who you were yesterday, not to who someone else is today.”
The goal isn’t to match someone else’s lifestyle; it’s to focus on your own growth and financial health.
Staying grounded in your own progress rather than chasing the fleeting satisfaction of keeping up with others can save you from a lot of unnecessary spending—and stress.
4) Not investing
Failing to invest is one of the biggest missed opportunities for building wealth over time.
Many people assume that saving alone is enough, but without investing, your money loses value due to inflation.
Simply leaving your cash in a savings account won’t cut it—especially when inflation averages around 2-3% annually.
When I first started earning, I focused solely on saving, thinking I was doing the right thing.
But over time, I realized that my savings were barely growing, and I was essentially losing purchasing power.
It wasn’t until I began learning about investing that I understood how crucial it is to put your money to work.
Investing might seem intimidating, but it’s one of the most effective ways to grow your wealth long-term.
Even small, consistent contributions to an index fund or a retirement account like a 401(k) or IRA can make a massive difference over time, thanks to the power of compound interest.
5) Using credit cards irresponsibly
There’s no two ways about it. Using credit cards irresponsibly is a fast track to financial stress.
According to some sources, the average credit card debt for an American is over $6,000, and for many, it only keeps growing.
Swiping a card feels easy in the moment, but when the bill arrives—with interest—you realize just how expensive those small purchases can become.
I’ve fallen into this trap myself, too, relying on credit cards for convenience without considering how quickly the balance can balloon.
Before you know it, you’re stuck paying minimum payments that barely chip away at the principal, while interest accumulates at a staggering rate.
6) Not planning
Last but not least, not planning is one of the most common financial mistakes people make.
Don’t believe me?
Some sources suggest that more than 60% of people don’t know how much money they spent the previous month.
Without a clear financial plan, it’s easy to get stuck in a cycle of living paycheck to paycheck, with no safety net for emergencies or long-term goals.
I’ve been there—just coasting along without budgeting or thinking about future expenses.
It wasn’t until I faced a few unexpected costs that I realized how vulnerable I was.
Planning ahead—whether it’s for retirement, emergencies, or big life goals—can make the difference between financial stability and constant stress.
Final thoughts: It’s about awareness
If these signs sound familiar, don’t worry—you’re not alone, and it’s never too late to make changes.
By becoming aware of these habits and making small adjustments, you can start to regain control of your finances.
It may not happen overnight, but with consistent effort, you’ll move closer to financial stability and away from living paycheck to paycheck.
The power to change is in your hands—start today!
