Ever feel like no matter how much you earn, building real wealth still seems out of reach?
Whether it’s for retirement, new opportunities, or simply peace of mind, building wealth requires a shift in mindset and lifestyle. Often, this starts with recognizing and saying goodbye to behaviors that sabotage our progress.
Today, we’re diving into six common habits that may be holding you back from building wealth. Letting go of these could be the first step toward a more secure, prosperous future.
Let’s get into it.
1) Getting sucked into lifestyle inflation
Ever notice how spending seems to rise right alongside income?
This is the classic trap of lifestyle inflation. As we start earning more, it’s tempting to upgrade our lifestyle with bigger homes, fancier cars, and luxury vacations.
Sure it feels satisfying in the moment but lifestyle inflation can quietly erode our ability to build long-term wealth. It keeps you in a cycle of spending rather than saving.
Instead of using extra income to grow investments or build an emergency fund, that money gets funneled into maintaining an increasingly expensive lifestyle. This habit makes it difficult to achieve real financial security, even when you’re earning a substantial income.
The solution? Live below your means. Resist the urge to upgrade every time your income increases.
Focus on putting that extra money toward your financial goals, whether that’s retirement, investments, or paying off debt.
2) Overlooking the importance of financial planning
“Fail to plan, plan to fail”—this couldn’t be more true when it comes to building wealth. I think we all know this.
However, according to some sources, only 36% of Americans have a written financial plan! Yes, just 36%. Without a plan, it’s easy to drift financially, making it challenging to reach long-term goals.
Financial planning may sound daunting, but it doesn’t have to be.
Begin with simple steps, like tracking your spending, setting monthly savings targets, and automating contributions to investment accounts. Taking the time to map out a financial plan provides a clear direction for your wealth-building journey and makes it far easier to stay consistent.
3) Impulsive online purchasing
How often do you find yourself scrolling through social media just looking for some entertainment, and before you know it, you’re on a website, clicking “add to cart”?
You’re not alone. Research shows that 48% of social media users have made an impulse purchase on something they saw online. It seems the convenience of one-click shopping and the targeted ads that seem to know exactly what we “need” make it all too easy to spend without thinking.
The problem with impulsive purchases is that they chip away at your finances over time, redirecting money that could be saved or invested toward short-term wants instead. Those small “treat yourself” buys can add up quickly and often lead to buyer’s remorse.
To curb this habit, try creating a waiting period before any non-essential purchase.
Leave items in your cart for at least 24 hours to see if you still want them the next day. This pause can help you separate genuine needs from momentary wants and ultimately keep you on track toward your financial goals.
4) Keeping the wrong company
Okay, so I know “the wrong company” might sound a bit harsh, but the truth is that the people we spend our time with have a massive influence on our behaviors. As author Jim Rohn famously said, “You are the average of the five people you spend the most time with.”
When we’re surrounded by people who live beyond their means, constantly splurge on luxuries, or disregard saving and financial planning, we’re likely to fall into similar patterns without even realizing it.
Social influence can subtly steer us away from wealth-building goals and toward habits that drain our finances.
I experienced this firsthand a few years ago. I was spending a lot of time with friends who loved dining at high-end restaurants, going on expensive weekend trips, and shopping for the latest trends. I found myself joining in to keep up, even though these things didn’t really align with my financial goals.
Over time, my savings began to shrink, and I realized I was straying from my own values and priorities.
The key is to spend time with people who are mindful about money, disciplined in their spending, and focused on long-term goals.
Seek out friends, mentors, or peers who inspire you to make smarter financial choices and who encourage you to stick to your plans. This shift can have a powerful impact on your mindset and keep you motivated to stay on track with building wealth.
5) Not investing
Here’s one you probably expected, right?
Building wealth is not just about saving money, it’s also about making your money work for you. And one of the best ways to do that is through investing.
Investing might seem intimidating at first, especially with all the jargon and numbers. But don’t let that scare you away. There are plenty of resources available to help beginners understand the basics of investing.
And remember, you don’t need a large sum of money to start investing.
The key is to start early and be consistent. Thanks to the power of compound interest, even small investments can grow significantly over time.
6) Comparing yourself to others
Last but not least, one of the quickest ways to sabotage your wealth-building journey is to fall into the trap of comparison.
When you’re constantly measuring your progress against others, it’s easy to feel discouraged, lose focus, or even overspend in an attempt to “keep up.” Whether it’s seeing friends with the latest gadgets, the biggest house, or the most luxurious vacations, comparison can quickly drain your financial motivation.
Financial success looks different for everyone, and real wealth comes from setting and achieving goals that are meaningful to you.
As psychologist Jordan Peterson wisely advises, “Compare yourself to who you were yesterday, not to who someone else is today.”
By focusing on your own financial journey, you can make choices that align with your values rather than feeling pressured by what others are doing.
Final thought: It’s all about discipline
True wealth-building is about more than just earning; it’s about making intentional choices that support your long-term goals and values.
By letting go of these common pitfalls, you’ll be setting yourself up for a more secure and prosperous future.
Remember, building wealth is a journey, and the choices you make today can have a powerful impact on the years ahead.
Here’s to a financially secure and fulfilling future!
