How to stop staying broke: 6 common money traps (and how to escape them)
Been there!
Money struggles are real, and let’s be honest, sometimes it feels like your bank account is personally offended by your existence. But getting your finances in order isn’t just about numbers; it’s about setting yourself up for less stress, more freedom, and, yes, the occasional guilt-free splurge.
So, grab your favorite drink (coffee, tea, or something a little stronger. We’re not judging), and let’s tackle the six biggest reasons people stay broke and, more importantly, how you can break free.
1 | Not knowing where to start
The problem:
If financial talk makes your eyes glaze over, you’re not alone. Words like “index funds” and “compound interest” can sound like an ancient code designed to keep regular people confused. (Spoiler: they’re actually not that scary once you get the hang of them.)
The fix:
Start simple. Pick one money topic, budgeting, saving, investing, and learn the basics before moving on to the next. There’s no shame in starting with beginner-friendly resources. In fact, that’s the smart thing to do!
Suggested reading:
Budgeting for Dummies by Athena Valentine Lent
Managing Your Money All-in-One For Dummies by The Experts at Dummies
Personal Finance For Dummies by Eric Tyson
2 | Feeling overwhelmed
The problem:
Managing money can feel like juggling flaming swords. There are bills, debt, savings, credit scores... and let’s not even talk about retirement planning. It’s easy to shut down when there’s too much to think about.
The fix:
Break it down into bite-sized steps. Start by tracking where your money is actually going each month (you might be surprised). Then, set one small financial goal, like saving $50 a month or using a budget app to keep things organized. Small wins build momentum!
Suggested tool:
3 | Fear of making mistakes
The problem:
Ever put off a financial decision because you’re afraid of doing it wrong? Yeah, same. But waiting too long can be just as risky as making a mistake.
The fix:
Accept that messing up is part of the process. (Nobody gets rich by being perfect; they get rich by trying.) Start small. Open a high-yield savings account, try a micro-investing app, or meet with a financial advisor. Many banks even offer free consultations, so you don’t need to be rolling in cash to get good advice.
Still... that's an impressive paper airplane in my opinion.
4 | Procrastination
The problem:
We’ve all been there, thinking, “I’ll deal with my money later.” Except “later” turns into years, and suddenly, getting your finances in order feels impossible.
The fix:
Schedule a “money date” with yourself once a week. Light a candle, play some music, and make it fun. Do whatever you need to do to keep yourself engaged. Review your budget, check your accounts, and set small financial goals with actual deadlines.
Real talk:
I once ignored my finances for years, assuming everything was fine. Turns out, my credit score was trash, and I couldn’t get a mortgage when I needed one. Fixing it took nearly a decade. Lesson learned: ignoring money problems doesn’t make them go away. Facing them, even little by little, does.
5 | Emotional spending
The problem:
Bad day? Buy something. Good day? Buy something. Bored? Buy something. Money and emotions are tightly linked, and if you’re not paying attention, your bank account will feel the consequences.
The fix:
Recognize your spending triggers. If shopping is your go-to stress reliever, try replacing it with something else, like journaling, exercising, or even just taking a walk before making a purchase. If your relationship with money feels deep-rooted and overwhelming, a financial therapist (yes, they exist!) can help you work through it.
Read: Stop enabling your adult child financially
6 | Not having the right tools
The problem:
You wouldn’t try to build a house without tools, right? The same goes for managing money. Without the right resources, financial progress can feel impossible.
The fix:
Use the many free and low-cost tools available online to help you budget, save, and invest. There’s no need to figure everything out on your own!
Suggested resources:
Make money management part of your routine
Money is a lot like fitness. Consistency is everything. You don’t need to be perfect at managing your money, but you do need to keep showing up. Talk about finances with friends and family, use the tools available to you, and remember: small steps lead to big changes.
You’ve got this.
What’s one thing you can do starting today to lower your spending? Drop it in the comments.
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