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There are lots of people in the world who earn great salaries at their job, but still live paycheck to paycheck.  While everybody’s financial situation and circumstances differ, there are a number of bad habits that many people fall into, which keep them living ‘poor’ regardless of how much money they earn.

Today I am going to break down some of these bad habits, in order to help you recognize if you are doing the same thing, and hopefully encourage you to change your behaviors for the better moving forward.

7 Habits Of Poor People


Trying to keep up with your peers will always keep you poor.  With the ever more accessible use of credit cards and loans, many people are living in what looks like a super successful and wealthy lifestyle, but behind the scenes, they’re paying for their brand new car and designer watches on credit cards and finance agreements. The monthly interest payments for these credit cards is often extortionate and leaves people broke. 

So don’t try to keep up with others, as half the time you won’t have the full picture and those people won’t be doing nearly as well as you perceive anyway! 


Not sticking to a budget is one of the fastest ways to lose track of your money and overspend in areas that you can’t afford. Keep a log of how much money you have coming in, what is going towards bills and what’s left over to spend and save and you will find that you feel much more in control of your finances which in turn will lead to better money management. 

There are apps, journals and diaries available for keeping a budget – find a way that works for you (I have always just used an Excel spreadsheet) and stick to it! 


People who are living paycheck to paycheck will generally reach for credit without even thinking twice.  I remember the time when I was most in debt, I would pay for things using a credit card, even if I could actually afford it, as I was scared to spend the money that I had in my bank account because I was living in this poor mentality.  It’s crazy that that mindset alone actually contributed to landing myself even more in debt than I started, and this way of thinking made my life so much more stressful than it needed to be!

Don’t use credit cards unless you absolutely need to, or unless you are only spending a little bit and paying it off in full every month in order to build your credit score.  If you can afford to pay for something in full then do that, and if you’re thinking about buying something on credit because you can’t afford to pay for it at the moment, then ask yourself if you really need it now, or can it wait until you have the money aside to pay in full.


People who are living in debt will generally spend money frivolously without putting in much thought.  I used to have a serious shopping problem, and I would go to my local shopping centre and spend money that I didn’t have on clothes, makeup and accessories that I didn’t need, and I didn’t even end up wearing!  

A few years of living this way in my early twenties, made for a very stressful journey of paying off debt a few years down the line, and although I am only 26 now, I am still saving for a house and for important things that I should have been able to afford a few years back, all because I didn’t use my money wisely when I was younger.

Before making any purchase, ask yourself if the item is something that you really want, do you need it, will you use it and can you afford it?  If the answer to any of those questions is no, the don’t buy it! If the answer to any of those questions is you’re not sure, then you probably still shouldn’t buy it. 


Not keeping an emergency fund for times when your car breaks down, you need to take a last minute trip to see family in need, or you even need to take some time off work for personal reasons can land you in hot water.

If you don’t have access to some emergency savings in situations like these, then you won’t have any other choice than to borrow money, or use credit cards. The hefty interest payments that you pay on this borrowed money aren’t the only issue – the psychological feeling of not having money in stressful situations where you really need it, is often enough to keep you trapped in this lifestyle as people who are down in the dumps about money, will often spend what they don’t have frivolously to try and make themselves feel better.


People who have financial freedom and access to a lot of money, simply do not have only one source of income. Going to a job every day and collecting a paycheck is not enough if you want to create financial stability and independence for your family.

Whether you choose to take up a second job, work on a side hustle in your spare time, start a family business or find ways to invest your money to earn passively, you need to be creating multiple streams of income if you want to create wealth.


Convenience is never the best choice financially.  Convenience foods are always more expensive, as companies charge extra for taking out the hard work for you.  Convenience stores always sell products at astronomically higher prices than their supermarket alternatives, as they can count on bringing in customers anyway because it’s more convenient for busy people.

If you want to have more money in your account to save, invest or just to spend on things that really make you happy, then plan in advance and never choose last minute convenient options as these will always cost you a significant amount more. 

To Finish Off….

I hope you found come value in this blog post and I would love to hear your thoughts.  Are there any habits that you think are keeping you poor and how do you avoid overspending when you are working towards any financial goals?  Please leave a comment below and I look forward to seeing you back here soon!

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