For the smart, driven, and feisty

Does saving money feel impossible? Rising costs of housing, groceries, childcare, and everything else can make it seem like there’s no way to get ahead in your personal finances.

You’re not alone. What if you could take control of your finances, save more money, and start building real wealth—even if your paycheck feels stretched to the limit?

For many of us, it feels like our paycheck is spent before it hits our bank account? Yes, prices are high, but it’s also our spending habits.

The truth is, small, everyday decisions about money can quietly drain our finances and keep us from reaching our goals. Financial literacy, personal finance, and financial planning can mean the difference between surviving and thriving in this economy.

The good news? Once you recognize the habits that are holding you back from reaching financial peace of mind, you can replace them with smarter choices that help you save money and thrive.

Why This Blog Post Is (Really) Important

This is an emergency. Why? Most people live from paycheck to paycheck.

The Federal Reserve reports that many Americans have only $400 in savings and would struggle to pay for an emergency. 

It highlights the growing insecurity about money. 

Increasing costs of living and stagnant wages are deeply affecting Americans.

Fact: Black and Hispanic households make lower incomes, as compared to White and Asian households: Chase Bank.

This income disparity lowers the net worth of Hispanic and Black households, which reduces their buying power and the choices they have in life.

People often blame those on welfare, food stamps, etc., but what drives up costs is corporate greed and tax breaks. If we continue to blame each other as working people, that helps big companies and the ultra-wealthy, who both don’t care about any of us.

But I digress…

Why Money Is So Important

The biggest surprise of my young adult life happened less than one year after college graduation.

One day, all employees were called into a Mississippi factory for an all-hands meeting.

The president stepped up onto a makeshift stage. 

He was a tall man with dark brown hair and a slightly athletic physique.

He stood there for a few seconds looking at all of us, as we all slowly gathered in front of him.

We were hesitant to get near the stage – afraid of what he was going to say.

Our eyes looked left and right at each other, puzzled.

• “Is he leavin’ the company?”

• “Are they gonna have a layoff?”

• “What’s goin’ on?”

My heart was beating so loudly that I thought my colleagues would hear it.
“We’re here to tell you that the company has decided to shut down and move the plant to Mexico”.

The crowd gasped.

My heart dropped. I felt dizzy – like the whole world was caving in on me. 

At that moment, I resolved to never have to worry about how I’m going to pay my bills again.

The reason I share this story is to provide background on why I wrote this post. You shouldn’t have to worry about money like I did, when I lost my job.

Money provides security. Having it allows you to breathe easy and avoid living from paycheck to paycheck.

Financial literacy is important to understanding your money. Financial planning is crucial for your investments and long-term wealth.

No one deserves to live in fear about paying their bills, saving money for retirement, or paying for surprise expenses that happen in life.

With small changes in how you spend (and save) your money, you can have financial peace of mind.

Why You Should Listen to Me

I’m not a financial planner or wealthy. I’m an everyday working person.

What sets me apart is that I’ve used these 5 habits that I’ve developed over 25 years to save more money than 8-12 times what the average American has in both their 401(k) and personal savings accounts.

For example (these are not actual numbers):

If the average American has $100K in their 401(k), I’ve saved more than $800K.

If the average American has $10K in personal savings, I’ve saved more than $120K.

This isn’t about luck or earning a high salary.

It’s about strategy and consistency. 

Personal finance should be a part of your weekly routine, just like anything else in your life.

Let me show you how you can overcome spending habits that hold most people back.

5 Costly Spending Habits – And How to Avoid Them

1. Stop Impulse Buying with This Simple Question: “Do I Really Need This Right Now?”

It seems like an obvious question, but you would be surprised how many people act out of emotion rather than logic, when it comes to money.

Retailers convince us that we need things *right now*. Sales, limited-time offers, and buy-one-get-one deals all pressure us to act fast. 

Most of the time, the real answer to “Do I need this?” is a simple *No*.

“Everything for $7!”. 

My favorite hair care line announced a sale right after Thanksgiving.

I imagined how beautiful, soft and silky my hair would be when I got a big haul in the mail.

A few clicks later, a couple hundred bucks worth of hair products were in transit.

After opening the box, reality hit. I bought too much.

Not only was I out of the money, I had to find room to store it all.

In reality, I could have bought 3 or 4 bottles of what I needed for the next 3 to 4 weeks and saved the rest of my money.

This is an expensive lesson learned for next Thanksgiving.

How to stop this habit:

• Pause before making a purchase.
• Set at least a 24-hour rule for any non-essential items, giving yourself time to determine whether it’s something you truly need or just a momentary want.
• Give yourself a few days to price shop, if you really need it.

2. How to Stop Overbuying and Save Money

How many times have you bought a replacement item only to discover later that you already had one? Over-purchasing often stems from convenience or lack of organization.

When you take time to look through items you already have, you often don’t need to buy something new.

Searching the back of the closet, basement, junk drawer, or hardware box can reveal things you don’t know that you have. It also gives you time to think about the purchase.

For example, my 600 square foot studio apartment is a sweet little spot on the top floor, with plenty of sunlight.

As I decorated it, I re-used the furniture from my previous 1200 square foot home.

In fact, the reason I was able to move into a much smaller space is because I buy as little as possible.

I threw away the free bed frame that a former work colleague gave me and left my extension ladder and patio set behind for the buyers. I was able to move everything else into my apartment.

One thing that I considered throwing out is my adjustable height office desk. 

It’s 4 feet long, and fitting it into my small bedroom with a full-size mattress seemed impossible. 

After some creative rearranging, I made it work—and saved over $100 by keeping a functional piece of furniture.

How to stop this habit:

• Take inventory of what you already own.
  
• Check your pantry, closet, toolbox, etc. You might be surprised by what’s already there.
  
• Focus on recycling or reusing what you already have. It will save you time and money.

3. Choose Quality Over Trends to Save Money

We’ve all been tempted by trendy, Instagram-promoted purchases. But these often don’t stand the test of time, leading to more spending down the road, when the item doesn’t hold up.

Right after college graduation, my Mom took me to a furniture store to buy a sofa and love seat for my first apartment.

As we were walking through the huge showroom, Mom saw this cool sofa with a beautiful print.

She and the salesperson talked about how trendy it was and how it would be perfect for a 20 year old like me. The set reminded me of a Parisian cafe. 

After sitting on it for 10 minutes, I figured out that the cushioning was minimal and that it would flatten out after a while.

The three of us continued to walk around the storeroom for about 30 minutes. 

All of a sudden, I noticed this traditional, sturdy, and neutral-colored sofa set with a bunch of colorful pillows. 

It was not as stylish as the set my Mom liked, but I knew the cushions would hold up well and last me for years.

My Mother and the salesperson were surprised that at my young age I would make such a conservative purchase. In fact, the salesperson said, “That’s very…mature of you”.

24 years later, I still have the same sofa set. 

My Mother said, “After all of these years, this couch is still holding up. That set that I wanted you to buy would have had to be replaced by now”.

This was a smart buy that was worth every penny.

How to stop this habit:

• Shift your mindset to prioritize quality and durability. 
  
• Ask yourself: “Will this still be useful five years from now?” 
  
• Choose items that can go the distance.

4. Calculate Purchases in Hours Worked, Not Just Dollars

It’s easy to swipe a credit card and not think about what it actually cost you in time. 

Stacy, a work colleague, bought a house.

She was excited about all of the furniture that she purchased to decorate it.

Bragging, she told me, “I spent $7,000 for a new bedroom set. It’s so gorgeous!”.

I thought to myself, “No bedroom set is that gorgeous”. I smiled and congratulated her, but I was in shock.

Stacy worked with me so she had an average income at best. How could she afford such an expensive set just starting out?

Let’s say that she made $45/hour.

The calculation would be $7,000 that she paid for her bedroom set divided by $45/hour ($7,000 / $45).

That comes out to her having to work a total 155 hours to pay for the set – assuming there is no interest.

This breaks down to almost 4 weeks of work. In essence, she worked for a month to pay for a bedroom set.

Think about it.

• Could she have found another set that she liked which costed less?

• Would it have been possible to buy a bed frame, 2 night stands, a dresser and chest of drawers at a discount store that was durable and attractive?

• Could she have used leftover furniture from family or a goodwill store and put her decorative spin on it?

If she had done the calculation, she may have gotten creative about how to decorate her bedroom.

How to stop this habit:

• Before buying, calculate how many hours you’ll need to work to pay for the item. 
  
• Determine its true value and decide if it’s worth it.

5. Avoid Lifestyle Creep: Save Raises and Bonuses

As your income grows, it’s tempting to upgrade your lifestyle. But spending more as you earn more can hurt your personal finances.

For example, Sue gets a $100 per week pay raise.

She gets excited and wants to spend it for a little retail therapy. 

Maybe she will get a new subscription, buy a new piece of furniture, or purchase an expensive purse.

She deserves it after dealing with her difficult co-workers and office politics.

“There’s nothing wrong with splurging on myself a little”, Sue thinks to herself.

She forgets that she did not need those things before getting her raise.

In fact, she was doing just fine without them.

She could continue living on her income before the raise and send that extra $100 to her savings account, without missing it.

It’s human nature to want to buy nice things as you make more money. But the question has to be, “How can I invest this money, instead of spending it?”. Financial literacy is crucial to understanding what to do with your money.

How to stop this habit:

• Set a rule to save a percentage of every raise or bonus.
  
• If you get a 5% raise, put at least 3% of that increase toward savings and keep your expenses steady.

Bonus Tip: You Need A Budget

Without financial planning, it’s easy to overspend. You might buy what you want at the moment without realizing that it’s eating into money meant for your future goals.

The hard part that most people don’t want to hear: make a budget.

You don’t have to be highly analytical or become like an accountant. Remember that you are doing this to take care of you, your money, and your peace of mind.

To help with financial planning, you could schedule a financial consultation with a professional advisor. SmartAsset published an article comparing fee-based vs. fee-only financial consultation that could be useful.

If you choose to schedule a financial consultation, be sure to interview several advisors before making a decision. Never feel obligated to work with anyone you don’t completely trust and monitor your investments regularly.

Need more proof that budgeting is important? According to Smartasset, there are 4 main benefits of budgeting:

1. Limits overspending

2. Identifies spending patterns

3. Reaches long-term financial goals

4. Prepares for emergencies

Schedule weekly budgeting in your calendar or have someone hold you accountable to do it consistently. Whatever it takes, you will not regret it.

How to stop this habit:

• Create a simple budget that allocates your income toward necessities, savings, and fun. 
  
• Stick to your spending limits and review your progress weekly.
  
• Start from zero each month when creating a budget to identify expenses that you can cut to save money.

Conclusion

Breaking these habits doesn’t mean cutting out all fun or treating yourself sometimes. It’s about being intentional with your spending so your money works for *you*. Start by tackling one habit at a time, and watch how your money grows.

—> Which one of these habits do you struggle with the most? What’s one small step you can commit to? Let us know in the comments — we’d love to hear your story!

1. 

   Great summary!

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