9 Poor Habits of Broke People

When you’re on a wealth building journey, it’s crucial to pick up habits of millionaires and get rid of the habits of broke people.  There are people with a lot of money who are still broke. Yep, read that again. There are also people who get rich and lose it quick because they lack the financial intelligence to maintain wealth.  Financial literacy is one of the most important skills to have, yet people rarely take the time to learn about money and/or apply what they learn. Do you want to win the rat race? Do you have a burning desire to become financially free?  If so, you must develop money consciousness and discipline to stay the course. I love to educate other people on finance; it’s one of the main reasons I created my blog. I attract and repel people all the time. Some people think I’m different, and that’s ok.  Broke is normal, and I don’t want to be normal or broke! So, I think it’s important to identify the habits of broke people, that way it’s clear what NOT to do if you are serious about breaking cycles and accumulating riches.

why am i so broke


Keeping up with the Jones’

Most people are in denial that they care too much about what others think.  Social influence dictates the lives of many. If you want to become wealthy, stop living above your means and act your wage.  I love designer clothes and handbags, but I haven’t bought anything that expensive for myself, yet. I still owe people, and I respect myself enough to want to get out of debt as quickly as possible.  It doesn’t make sense for me to spend excessively for instant gratification when that money can be put to work to secure my financial future or eliminate some debt. Material possessions are not a sign of financial status; some of the richest people wear basic clothes and drive average cars.

Hanging out with other broke people

If you want to get rich, surround yourself with rich people.  If you don’t know anyone who is rich on paper, a rich mind and a rich spirit will leave a rich impression.  Even if you don’t take any advice from broke people, their energy can still affect you. Choose your inner circle wisely.

Confuse liabilities with assets

Liabilities create an expense and assets generate income.  If you are still paying on your car or home, it is technically considered a liability.  People who keep up with the Jones’ trade in their car every few years for something nicer and newer.  People who value financial freedom avoid auto loans, and pay any loans off they do have as quickly as possible.  I have been paying an additional $100 every month on my auto loan this year and as soon as a lump sum of money flows my way I’m applying it to the principal balance on my car.  This requires discipline but I truly look forward to not having a car payment. Once that money frees up I can buy more assets, such as real estate.

Stay in the debt cycle

Have you ever thought that if you don’t have the cash you can’t afford it?  Maybe you should save money to make the purchase instead?! Cash is king but people are so quick to finance purchases.  People charge unnecessary expenses to credit cards, avoid paying back student loans, and go into more debt when they aren’t prepared to take care of an emergency expense.  According to a federal survey from 2017, about 40% of adults said that if they were faced with a $400 unexpected expense, they couldn’t cover it with cash. Build an emergency fund and stop borrowing so much money!  If you don’t, you give yourself permission to remain in a vicious debt cycle.

Poor financial planning

People wake up and go to work everyday and can’t see past their next paycheck.  They chase a check to pay their bills and repeat the same dead end cycle. They do not look into their financial futures because they are too busy trying to survive paycheck to paycheck.  Monthly budgeting is a great way to manage money. Budgeting helps you find holes in your money and opportunities to save. Income protection, or life insurance, is another way to consider your financial future, especially if you have children who depend on your income.  A written financial game plan is also key because it gives you direction.

Lack of interest in learning money

Most people don’t know what to do with their money other than spend it.  Financial education is not taught in schools, so that’s why you have to teach yourself and/or surround yourself with people who are financially intelligent.  My money coach has a degree in Finance and told me that he left college without learning a thing about money! That is so unfortunate. Invest in books on finance.  Some of my faves are Think and Grow Rich by Napoleon Hill and Rich Dad Poor Dad by Robert Kiyosaki. Listen to podcasts. Learn about investing. The application of knowledge is power!


Some people may take offense to criticism on their financial well being.  Some people don’t want others telling them what to do or how to manage and invest their money.  Always be coachable. Always be willing to learn. You don’t know it all; if you did, why are you still broke?

Blames others

Broke people always blame the government, the economy, or others for their misfortune.  I will not dismiss how politics and certain events throughout american history created a wealth gap between groups of people, but I do know that folks need to take more ownership and responsibility over their own lives.  Stop being the victim. Sometimes we contribute to our poverty. Observe your spending habits for example. It’s no one’s fault if you decide to spend your money on drugs, alcohol, and partying. Focus on what you can do to improve your financial situation.

Negative mindset

Once again, it all begins with mindset.  I cannot stress this enough! Understand that money is energy, and we can attract or repel more of it by our thoughts and feelings towards it.  Get in the flow and start repeating money affirmations every day. Stop believing that there is a shortage of money because that is a lie. Money is abundant but it flees from those who don’t manage it well.  Money is not the root of all evil, ignorance is.

I’m sure I triggered some people with this post, because maybe you have a lot of money but didn’t realize you are still broke.  The good news is there is still time to form millionaire habits. Every day is a new chance to create new plans, goals, and dreams.  Make the decision today to live in God’s abundance.

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