When it comes to building wealth, there’s more to success than just working hard or being good with money.

Psychology tells us that our behaviors and habits play a huge role in determining financial success—or, just as importantly, financial struggle.

Many people unknowingly hold onto habits that keep them in a cycle of paycheck-to-paycheck living, even if they dream of financial freedom.

In this article, we’ll look at seven specific behaviors that are often found in people who struggle to build wealth.

By understanding and avoiding these habits, you can take steps to break free from financial limitations and move closer to the stability and abundance you desire.

1) Living beyond their means

One behavior that can put a serious dent in one’s financial prosperity is living beyond one’s means. This is when expenditure consistently exceeds income, leading to a cycle of debt and financial instability.

People often fall into this trap due to a phenomenon known as ‘lifestyle inflation‘.

As our income increases, so does our spending, leaving little room for savings or investments. We upgrade our homes, cars, and gadgets in an attempt to match the perceived standard of others around us.

It’s essentially a form of social comparison, a concept proposed by social psychologist Leon Festinger.

We compare ourselves to others and adjust our behaviors based on these comparisons. In terms of financial behavior, this means we often spend more to keep up with or surpass our peers.

Breaking free from the cycle of living beyond your means involves cultivating mindfulness about our spending, and resisting the urge to equate self-worth with material possessions.

It requires discipline, resilience, and a willingness to challenge societal norms.

2) Neglecting personal growth and self-awareness

Another behavior that can impede financial prosperity is neglecting personal growth and self-awareness.

In my own journey, I’ve found that self-awareness is a cornerstone to creating not just wealth, but a life of authenticity and freedom.

It’s about identifying our strengths, weaknesses, values, and beliefs – and then aligning our actions with this understanding.

When it comes to wealth creation, self-awareness means understanding our relationship with money.

• Are we spending impulsively?
• Are we saving intentionally?
• Are we investing wisely?
• Are these financial decisions in line with our broader life goals?

Personal growth, on the other hand, involves challenging our limiting beliefs around money. 

This isn’t a one-time process but a continuous journey of growth and learning. 

In the words of Tony Robbins, an author and life coach who shares the belief in the power of self-awareness and personal growth:

“The secret to wealth is simple: Find a way to do more for others than anyone else does. Become more valuable. Do more. Give more. Be more. Serve more.”

3) Lack of financial education

One of the most common behaviors that can hinder the path to wealth is a lack of financial education.

Many people aren’t taught how to effectively manage their finances, invest wisely, or plan for the future.

Without this knowledge, it’s easy to make financial decisions based on short-term needs or wants, without considering the long-term implications.

This can lead to a cycle of debt, missed investment opportunities, and financial instability.

In order to break this cycle, it’s essential to make a deliberate effort to learn about money management and investing. 

I’ve found that educating myself about finances has been a game-changer. It’s empowered me to take control of my wealth and make informed decisions that align with my long-term goals.

To help you get started on your own financial education journey, I recommend watching my video where I share insights on how to align financial decisions with your deepest values and use money as a tool for positive change.

4) Resistance to change

A major barrier to financial prosperity, and indeed to a fulfilling life, is resistance to change.

It’s a trait that can keep us stuck in unfulfilling jobs, unhealthy spending habits, and negative mindsets about money.

Change is inevitable, but it can be uncomfortable. It often involves stepping out of our comfort zones, confronting our fears, and challenging our beliefs.

However, it’s through these very challenges that we grow and unlock our creative potential.

In the realm of finances, this might mean changing the way we think about wealth.

Instead of viewing money as a scarce resource or a measure of self-worth, we can choose to see it as a tool – a means to support ourselves, contribute to causes we care about, and create positive change in the world.

This shift in perspective can make a significant difference in our financial behaviors. It can encourage us to:

• Save more
• Spend consciously
• Invest wisely
• View financial setbacks as feedback, not failures

5) Ignoring the power of community

A behavior that can obstruct the path to wealth and overall life satisfaction is neglecting the power of community and authentic relationships.

In our individualistic society, we often overlook that we’re part of a larger network that can offer support, guidance, and opportunities.

By isolating ourselves and trying to achieve everything on our own, we miss out on the benefits of collaboration and collective wisdom.

This can be particularly detrimental in our financial lives, where shared knowledge and resources can significantly improve our prospects.

Consider the concept of cooperative economics or mutual aid societies, where communities pool resources to support each other financially.

Or consider the power of networking in discovering job opportunities, business partnerships, or investment tips.

Our relationships with others can also provide emotional support during financial setbacks, helping us maintain resilience and optimism.

Additionally, they can help keep us accountable to our financial goals and encourage responsible money habits.

6) Pursuing wealth for wealth’s sake

It may seem paradoxical, but an obsession with becoming rich can actually prevent us from achieving true financial prosperity.

When the accumulation of wealth becomes our primary goal, we may overlook the deeper values and purposes that can bring us lasting fulfillment.

Money in itself is not the end goal. It’s a tool that can afford us opportunities, comfort, and the ability to contribute to causes we care about.

But when we chase wealth for its own sake, we risk losing sight of what truly matters.

True prosperity is not just about having money. It’s about:

• Aligning our financial decisions with our deepest values
• Using our resources to create positive change
• Cultivating a sense of purpose and creativity

If our pursuit of wealth leads us to compromise our values, disregard our relationships or personal well-being, or ignore the impact of our actions on the world, then we’ve missed the point.

7) Fear of taking calculated risks

Another behavior that can keep us from achieving wealth is the fear of taking calculated risks.

Whether it’s starting a new business, investing in the stock market, or changing career paths, all these actions involve a certain level of risk.

Psychologically, we’re wired to avoid risk due to our innate survival instincts.

But when it comes to financial prosperity, this fear can hold us back from seizing opportunities that could lead to significant growth.

Taking calculated risks involves:

• Doing thorough research
• Seeking advice from experts
• Weighing the potential gains against the losses
• Making informed decisions

In my experience, stepping out of my comfort zone and taking calculated risks has been instrumental in my path towards financial prosperity.

It has propelled me to explore new ideas, seize opportunities, and learn valuable lessons that have enriched my life beyond just monetary terms.

The power of conscious choices

Each choice we make, consciously or unconsciously, can either propel us towards financial abundance or keep us stuck in the cycle of scarcity. 

By recognizing and actively avoiding these seven behaviors, you’re already taking an important step toward financial freedom.

Whether you’re just beginning your financial journey or looking to strengthen your foundation, staying mindful of these behaviors can help you avoid unnecessary setbacks and make decisions that align with your goals.

Financial success is possible for anyone willing to put in the work and grow from experience.

Take charge of your future, break free from limiting patterns, and move forward with confidence.