11 Daily Habits Of Highly Broke People
No matter how much money they make, some people are constantly struggling with their finances.
FunKey Factory / Shutterstock While financial well-being is often intertwined with mental health, childhood experiences, career, and income, and even a person’s generational cohort, their daily habits and individual mindsets are often the most important factors influencing financial comfort and stability. Compared to stable and secure people who stick to important financial habits, such as budgeting and planning for the future, the daily habits of highly broke people keep them stuck in a cycle of uncertainty.
While this cycle of uncertainty tends to spark emotional, mental, and social symptoms that perpetuate stagnancy with a broke person’s finances, there’s always a way out. It may require acknowledging their toxic habits and having uncomfortable conversations, but broke people can find a way to a more comfortable and secure financial future.
Here are 11 daily habits of highly broke people
1. Not sticking to a budget
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No matter how much money you have coming in, what your spending habits are, or how secure you feel in your financial literacy skills, budgeting is the key to maintaining financial stability. Not only is it harder and more overwhelming on a daily basis to keep all your bills, financial responsibilities, and finances in your brain, but it’s also easier to plan for long-term purchases and investments when it’s all captured in a budget.
Of course, there’s an important balance between healthy budgeting that reduces anxiety and uncertainty about money and more toxic habits that spark a scarcity mindset. But while that may be important to consider, for the most part, people who never budget are consistently broke.
2. Ignoring their bank accounts
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While it’s true that many people find instant comfort and misguided security in avoiding their financial situations, whether that’s never checking their bank accounts or impulsively spending without referring to a budget, these habits only leave people more financially insecure and emotionally tumultuous in the long run.
That’s why ignoring bank accounts and never checking your expenses are some of the daily habits of highly broke people. Even if it’s missing something as simple as a subscription charge you already canceled or getting charged more than you agreed to from a utility company, checking your bank account can save you money and hassle.
3. Eating out regularly
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On top of overspending on conveniences, like fast food and delivery services, many people are simply staying broke because they don’t have the financial security to keep up with rising food and menu prices. Unlike many frugal people who budget for groceries and plan meals ahead of time to save money, those who are consistently broke tend to rely on convenience and familiarity.
Of course, there’s also an inherently emotional element to buying food and overspending on going out that’s impossible to ignore. People who have poor coping skills and emotional turmoil may look to these outlets to feign a sense of misguided control over their lives, even if it’s just spending $50 on a meal with friends to cope with the loneliness of not seeing loved ones or friends every day.
4. Only making minimum payments on bills
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For people who have carried over debt balances and regularly use credit cards to afford their financial habits and bills, paying the minimum payment is arguably the quickest way for them to sabotage their long-term financial well-being. As experts at TransUnion explain, paying the minimum payment on credit cards instead of making larger investments on interest or paying them off can grow debt faster, becoming a larger financial burden for people struggling with money in the long term.
So, even if it seems responsible and convenient now, this is one of the habits that keeps people broke.
5. Blame everyone else for their money problems
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Many people who stay consistently broke tend to struggle with taking accountability in many areas of their lives. When they don’t get a raise at work, it’s everyone else’s fault, even though they have the means to increase their productivity or even look for a job that compensates them more fairly. The same goes for saving money, budgeting, and making sacrifices. Not everyone has the means to become rich, but with the right habits, it’s possible to achieve a certain level of financial stability.
Of course, like a study from Harvard University suggests, many people develop more intense shame the more their financial hardship deepens, so it’s not entirely surprising that this is one of the daily habits of highly broke people. They’re struggling to get out of financial uncertainty because of their lack of responsibility and chronic victimhood. Still, they’re also coping with it by dealing with shame and embarrassment by blaming others.
6. Shopping impulsively online
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Whether it’s yearning for a sense of belonging by feeding into trend cycles or coping with anxiety, stress, and sadness by making impulsive purchases, many people who stay broke rely on the emotional and literal convenience of online shopping far too often.
According to a study from the Computational Intelligence and Neuroscience journal, e-commerce integrations and online shopping accessibility have made impulsivity for consumers much easier. Not only are they pressured by online advertisements and comparison culture on social media, but they’re also able to cope with emotional turmoil and chronic stress with the escapism of online shopping and spending.
7. Never saving money
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No matter how much money they make, how much their raises or bonuses are, or what income they have coming in, people who are highly broke never save money.
While it’s true that nearly 25% of Americans don’t have anything in a savings or emergency account, according to a Bankrate study, many broke people have the means to cultivate one, but instead spend it on things they don’t need, buying new clothes, fast food deliveries, and even keeping up with technology trend cycles.
8. Constantly engaging with mindless entertainment
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Whether it’s doomscrolling on their phones, spending hours watching TV at home, or engaging in some other kind of mindless entertainment, these are some of the daily habits of highly broke people. While research does show that wealthy people tend to be happier and engage in more active habits than mindless ones, it’s really their freedom of time and choice that contributes to financial and emotional stability.
Broke people stay broke because they don’t leverage their free time in the healthiest and most productive ways. They don’t need to be working second jobs and side hustles at the expense of their well-being, but even contributing to healthy habits, like cooking a meal or going for a walk, instead of mindless entertainment, could keep them from engaging in poor money habits.
9. Signing up for memberships they don’t use
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Whether it’s a gym membership they never use or streaming services that only get a few hours of watch time a year, many people who stay broke consistently feed into these regular charges that don’t actually prove worthy of the money they spend.
They’re essentially wasting money, sometimes, hundreds of dollars a year, on things that they never use. That’s why this is one of the daily habits of highly broke people, because even though they seem small, simple, and innocent, these financial decisions add up to a lot of wasted money over the course of the year.
10. Never saying no
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While there’s a misconception that people living in financial scarcity tend to make poor decisions, the truth is they usually just prioritize short-term comfort and gains over long-term well-being and stability, as a study from the American Psychological Association explains.
For some, it’s a lack of financial literacy. They don’t have the knowledge or tools to do things differently. But for others, it’s a cycle of bad habits that’s centered around instant gratification and comfort. They never say “no” in the moment to avoid discomfort, so they often spend more money than they would if they had strong financial boundaries.
11. Using name-brand products
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While research shows that amid rising costs and prices, many people are ignoring brand-name products and food completely, consuming and purchasing them is still one of the misguided daily habits of highly broke people.
They frame their purchasing habits and services around status symbols rather than quality, longevity, or cost-effectiveness, even though the brand-name products they’re investing in hardly have the kinds of benefits they think they do.
Zayda Slabbekoorn is a staff writer with a bachelor’s degree in social relations & policy and gender studies who focuses on psychology, relationships, self-help, and human interest stories.
