Have you ever met someone who seems to have it all—a great job, a solid paycheck, maybe even a few perks that scream “successful adulting”—yet they’re constantly complaining about being broke?

Or maybe that sounds a little too familiar because it hits close to home.

It’s frustrating, right? You work hard, the money comes in, but somehow it feels like it evaporates the second it hits your account.

I’ve been there, too—wondering why my bank balance never reflected my efforts, even when my paycheck was more than enough on paper.

The truth is, financial struggles aren’t always about how much you earn; they’re often about the habits that quietly drain your money.

Let’s dive into seven common habits that keep people stuck in this cycle, even when they make a good living.

Who knows? You might recognize a few of them—and maybe even find some inspiration to turn things around.

1) Living for today

It’s not uncommon to encounter folks who enjoy the here and now, seemingly without a thought for tomorrow.

Their mantra? Live for today and let tomorrow take care of itself.

Now, there’s nothing wrong with enjoying the fruits of your labor. We all deserve that.

But when this becomes a habit, when every paycheck becomes an excuse for another shopping spree or a lavish night out, it can lead to a perpetual state of financial instability.

It’s simple math, really. If you spend everything you earn (or more) as soon as you get it, you won’t have anything left for the rainy days.

2) Ignoring the budget

Oh, budgets. They’re not exactly fun, are they? But boy, are they necessary.

I recall a time in my life when I was earning quite a decent income. Yet, no matter how much I made, I always seemed to be scrambling by the end of the month.

It was frustrating, and for the longest time, I couldn’t figure out where I was going wrong. So one day, I decided to sit down and make a detailed budget.

I’m talking about tracking every single penny that came in and went out. It was a tedious process, but it was an eye-opener.

I realized that I was spending an absurd amount on things I didn’t even need – fancy coffees, takeout meals, little treats here and there… It all added up.

Once I started sticking to a budget, I found myself with extra money at the end of each month. And let me tell you, that felt good!

When you don’t track your money, it’s easy for unnecessary expenses to sneak in and wreak havoc. A few small purchases here, a couple of splurges there—it all adds up faster than you think.

Creating a budget might feel restrictive at first, but it’s actually freeing. It gives you control, clarity, and, most importantly, a roadmap to stop living paycheck to paycheck.

3) Falling into the debt trap

We live in a world where credit is abundantly available. It’s easy to think of credit cards and loans as free money or a quick solution to our financial woes.

But here’s the catch – the average credit card interest rate hovers around 16%.

What does this mean? Well, if you’re not careful with your spending, and you start racking up debt, it can quickly snowball into a massive financial burden.

You see, when you only make minimum payments on your credit card, a large part of it goes towards paying off the interest, not the actual amount you owe.

This means you could be in debt for years, even decades!

In fact, according to the Federal Reserve Bank of New York and the U.S. Census Bureau, American households with credit card debt owe an average of $7,951.

And that’s just credit card debt; it doesn’t include mortgage, car loans, student loans and so on.

If you’re always broke despite making good money, take a close look at your relationship with debt. Are you falling into the debt trap?

4) Neglecting savings

You might have heard of the term ‘Pay yourself first.’ It’s a popular personal finance mantra that emphasizes the importance of saving.

It means setting aside a portion of your income for savings as soon as you get paid, before you start paying your bills or spending on other things.

Take Warren Buffet for example, one of the wealthiest individuals in the world. He is known for his frugal habits – still residing in the same house he bought in 1958 for $31,500, driving an unpretentious car, and not splurging on luxury items.

His mantra? “Do not save what is left after spending; instead spend what is left after saving.”

But unfortunately, many people who earn well but are always broke, tend to neglect this crucial habit. They save what’s left after spending, instead of spending what’s left after saving.

If this sounds like you, it may be time to reassess your savings strategy. Remember, even small, regular contributions can grow into a substantial nest egg over time.

5) Chasing the high life

Once upon a time, I fell into the trap of trying to keep up with the Joneses. I was earning a pretty good salary, and I was surrounded by people who were living what seemed to be glamorous lifestyles.

Designer clothes, luxury cars, extravagant vacations – you name it, they had it. And I wanted in on it too.

So, I began spending money on things I didn’t really need or even particularly want, just to fit in. I was chasing an illusion of success and happiness.

But here’s what I learned: true wealth is not about what you show but what you have saved. The high life often comes with a high price tag and doesn’t necessarily equate to happiness or fulfilment.

6) Avoiding financial literacy

Money management isn’t always taught in schools, and it’s not a subject everyone feels comfortable discussing.

But lacking knowledge about personal finance can lead to some serious monetary problems down the line.

Understanding concepts such as interest rates, investments, taxes, and retirement plans can be overwhelming. But it’s crucial to take charge of your financial future.

Those who earn well but are always broke often lack financial literacy. They might earn a good living, but without understanding how to manage that income wisely, they may find themselves in a constant state of financial stress.

So, if you’re in this boat, consider investing some time and effort into boosting your financial literacy. There are plenty of resources available online, many of which are free. 

7) Neglecting long-term goals

While it’s important to live in the present, it’s equally necessary to keep an eye on the future. This especially applies to our finances.

Having long-term financial goals gives direction to our spending and saving habits. It could be buying a house, starting a business, or saving for retirement.

Those who are always broke, despite making a good living, often neglect these long-term goals. They’re so caught up in the demands of the present that they forget to plan for the future.

Your financial decisions today will shape your financial reality tomorrow. So, make sure you’re not neglecting your long-term goals. It could be the difference between perpetual financial stress and financial freedom.

Final thoughts: It’s all about habits

The relationship between income and financial stability is not as straightforward as one might think. It’s not always about how much you earn; it’s more about how you manage what you earn.

These habits we’ve discussed are not just tendencies, they are choices. Choices that can lead to a cycle of financial stress, or to financial freedom.

So if you find yourself always broke despite earning well, remember that your financial destiny is largely in your hands.

The power to break free from these detrimental habits and take control of your financial future lies with you.