People who are bad with money usually displays these 9 specific behaviors (without realizing it)

Struggling with money can be frustrating, especially when it feels like no matter how hard you try, you just can’t seem to get ahead.
Often, the root of the problem isn’t just a lack of financial knowledge—it’s the subtle habits and behaviors that sabotage your efforts without you even realizing it.
If you’re looking to improve your money management and finally take control of your finances, it’s important to recognize the patterns that might be holding you back.
In this article, we’ll highlight 9 behaviors that people who are bad with money tend to display, and how identifying them can be the first step toward better financial health.
1) Avoidance of budgeting
It’s an unfortunate truth that those who are bad with money often shirk the task of budgeting.
Budgeting is like the roadmap to financial success. Without it, you’re navigating blindfolded.
Yet, many people avoid this critical task, either due to a lack of understanding or fear of facing their financial reality.
It’s often easier to ignore the problem than to confront it head-on.
But avoiding your finances doesn’t make them disappear. It just makes them more difficult to manage in the long run.
So if you find yourself shying away from budgeting, it might be time to reassess your relationship with money and develop a more proactive approach.
2) Living paycheck to paycheck
Another common behavior among people who struggle with money is living paycheck to paycheck.
I’ve seen it firsthand, and honestly, I’ve been there too.
Years ago, when I first started Hack Spirit, the funds weren’t exactly rolling in.
I found myself waiting anxiously for the next paycheck, always barely scraping by.
It was stressful and exhausting, and it left no room for unexpected expenses or savings.
Living this way is often a sign of poor money habits.
It means you’re spending almost all of what you earn, leaving nothing for emergencies or future planning.
It’s also more common than you realize.
According to a survey by Bankrate, 1 in 3 workers (approximately 34%) live paycheck to paycheck—while this cycle can be a difficult one to break, it’s not impossible.
It took a lot of discipline and planning, but I eventually got to a place where my financial situation allowed for savings and even some occasional luxuries.
3) Impulse buying
Impulse buying is another behavior that people who are bad with money often display.
It’s the act of making a purchase without planning or consideration, usually driven by immediate desire or perceived need.
Now here’s something to ponder: A study conducted by Slickdeals.net found that the average American spends about $5,400 per year on impulse purchases.
That’s a significant chunk of change!
These purchases can range from small items like a coffee on the go to larger, more expensive items like electronics or clothing.
While the occasional indulgence won’t necessarily harm your finances, making it a habit can quickly lead to financial instability.
If you find yourself frequently giving in to the urge to buy without thinking it through, take a step back and consider the impact of your purchasing behaviors on your overall financial health.
4) Attachment to material possessions
In the teachings of Buddhism, attachment is seen as a source of suffering.
This concept also applies to our relationship with money and material possessions.
Those who struggle with money often display a strong attachment to material things.
They believe that acquiring more will bring them happiness, but in reality, it often leads to financial stress and dissatisfaction.
In my book, “Hidden Secrets of Buddhism: How To Live With Maximum Impact and Minimum Ego“, I delve into this concept in more detail.
I explore the Buddhist teachings on non-attachment and how applying these principles can lead to a healthier relationship with money and possessions.
When we let go of the need to constantly acquire more, we can focus on what truly matters.
We can start making wise financial decisions that are not driven by the desire for material possessions but by the desire for a stable and secure financial future.
5) Ignoring financial education
I’ll be honest, finance wasn’t always my strong suit.
I struggled with understanding the ins and outs of personal finance and often found myself overwhelmed by it all.
One of the behaviors that people who are bad with money often display is a lack of financial education.
They may feel too overwhelmed or intimidated by financial concepts to take the time to learn about them.
This was me for a long time.
I avoided learning about finance because I thought it was too complex or boring.
But this lack of knowledge only compounded my financial issues.
When I finally decided to educate myself about personal finance, I realized that having a basic understanding of finance isn’t just helpful—it’s essential.
Knowing how to budget, save, and invest can make a significant difference in your financial health.
If you’ve been avoiding learning about finance because it seems too complicated or dry, take it from someone who’s been there: it’s worth the effort.
The more you understand about money, the better you’ll be at managing it.
6) Over-reliance on credit
Credit can be a useful tool when used responsibly.
It can help you make large purchases, build your credit history, and even provide a safety net in case of emergencies.
But here’s where it gets counter-intuitive: relying too heavily on credit can actually be a sign of poor money management.
People who are bad with money often depend on credit cards or loans to fund their lifestyle.
They may justify this behavior by pointing to the rewards or benefits of using credit.
However, without proper management, this reliance on borrowed money can quickly lead to accumulating debt.
Using credit is not inherently bad.
But if you find yourself using credit cards to cover everyday expenses, you might be using it as a crutch instead of a tool.
7) Lack of savings
Savings play a crucial role in financial stability.
They act as a safety net for unexpected expenses and provide the means to achieve long-term financial goals.
However, people who are bad with money often display a lack of savings.
They may live paycheck to paycheck, with all their income going towards bills and discretionary spending.
This leaves little to no room for saving for emergencies or future needs.
If you find it difficult to save money, reassess your spending habits and improve your financial situation by:
- Creating a budget
- Cutting back on non-essential expenses
- Setting aside a portion of your income for savings
Savings aren’t just about having money in the bank.
They’re about financial security and peace of mind.
In fact, money experts recommend aiming to have enough savings to cover 3 to 6 months’ worth of living expenses.
8) Prioritizing short-term gratification
We all love a bit of instant gratification.
I’ll be the first to admit that it feels good to treat ourselves after a hard day or to buy something we’ve wanted for a while.
However, people who are bad with money often prioritize short-term gratification over long-term financial health.
They spend money on things they want right now, without considering the impact on their future financial situation.
This behavior can lead to a cycle of spending that’s hard to break free from.
It’s easy to justify a small purchase here and there, but these small purchases can quickly add up and eat into your budget.
It’s important to find a balance between enjoying the present and planning for the future.
9) Neglecting retirement savings
Here’s the big one: people who are bad with money often neglect their retirement savings.
They may think it’s too early to start saving, or they might feel like they can’t afford to set money aside for retirement.
However, the truth is that it’s never too early to start saving for retirement.
In fact, the earlier you start, the more time your money has to grow.
Even small contributions can add up over time, thanks to the power of compound interest.
If you’re neglecting your retirement savings, it’s time to make a change.
Your future self will thank you.
Final thoughts: It’s about awareness
If you’ve identified any of these 9 signs in yourself, don’t be discouraged—awareness is the first step toward change.
By addressing these patterns and making small adjustments, you can begin to build better money habits that lead to long-term financial stability.
In my book, “Hidden Secrets of Buddhism: How To Live With Maximum Impact and Minimum Ego“, I discuss how Buddhist principles can help us become more mindful and aware in all aspects of our lives, including our financial habits.
Applying these principles can help us shift away from harmful financial behaviors.
Instead of repeating patterns that lead to financial instability, we can start making deliberate choices that support our long-term financial health.
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