According to Forbes, 78% of Americans are living paycheck to paycheck. But here’s the kicker—many of them make well above average salaries. While the media loves to blame $7 lattes and avocado toast, the real culprits behind our empty bank accounts are far more subtle. These seven sneaky habits could be the real reason your money seems to evaporate faster than your motivation at a 6 AM workout class.
1. The “I Deserve This” Defense
After a rough day at work, you buy those $200 shoes because you ‘earned them.’
Maybe you’ve been living down under for a while, and after checking a simple tax calculator for Australians and seeing a refund coming, you book a trip to Fiji to ‘celebrate.’
Or perhaps you have a mediocre day at your friend’s baby shower… well, you see where this is going. Whether something good happens, something bad happens, or something ho-hum happens, you can always find a way to justify treating yourself because you “deserve it.”
The Fix: You 100% do deserve to look after yourself. However, you might want to think about replacing retail therapy with literally any other kind of therapy. Your future self will thank you, probably while wearing sensible shoes that were actually in the budget.
2. The Subscription Spiral
Netflix, Hulu, Disney+, Spotify, that meditation app you used twice, the gym membership you’re keeping for “motivation,” and fifteen other monthly charges you’ve forgotten about. At this point, you wouldn’t be surprised if your recurring payments have their own recurring payments.
The Fix: Audit your subscriptions like a stern accountant. If you haven’t used it in 30 days, it’s time for some ruthless unsubscribing. Yes, even that one you’re keeping “just in case.”
3. The Social Media Shopping Trance
Three hours into an Instagram scroll, you’ve somehow convinced yourself you need a professional-grade juicer, despite having never successfully finished a whole orange. Those targeted ads know you better than your own mother.
The Fix: Turn off one-click purchasing. Those extra 30 seconds of effort might be just enough time for your rational brain to kick in and ask why you’re buying a unicorn-shaped air purifier.
4. The “I’ll Start Budgeting Next Month” Loop
Every month begins with grand financial plans. Every month ends with takeout and regret. You’ve downloaded seventeen budgeting apps, but your relationship with them is about as committed as your relationship with that juicer.
The Fix: Start now, start small. Track just one category of spending for a week. Baby steps are better than no steps, especially when those steps aren’t in $200 shoes.
5. The Emergency Fund Fallacy
Your idea of an emergency fund is whatever’s left in your account two days before payday. Meanwhile, your car is making a noise that sounds expensive, and your laptop’s fan sounds like a helicopter taking off.
The Fix: Start squirreling away small amounts regularly. Even $20 a week can add up to enough to handle a minor crisis without having to sacrifice next month’s groceries.
6. The “It’s Only Five Dollars” Trap
A coffee here, a snack there, a small donation to your cousin’s fifth Kickstarter this year. These micro-purchases seem harmless, but they add up faster than spam in your junk folder.
The Fix: Track these tiny expenses for a month. The total might shock you enough to start bringing your own coffee and learning to say no to your cousin’s latest artisanal sock puppet business venture.
7. The Payday Splurge Cycle
The moment your paycheck hits, you’re living like a tech billionaire. By week three, you’re calculating whether you can make it to payday on crackers and hope.
The Fix: Treat your paycheck like a monthly allowance rather than a winning lottery ticket. Divide it by four—that’s your weekly reality check.
Breaking Free from the Cycle
These habits aren’t character flaws—they’re learned behaviors that can be replaced by more helpful ones. The key isn’t perfect financial discipline (which, like inbox zero, might be a myth). Instead, aim for awareness and incremental improvement.
Start by:
- Tracking your spending without judgment (save the self-criticism for your karaoke performances)
- Setting up automated savings (because your willpower has better things to do)
- Creating a realistic budget (one that acknowledges your human need for occasional joy)
- Building an emergency fund (because your car and laptop are plotting against you)
Financial freedom doesn’t require a six-figure salary or a degree in economics. Often, it just needs you to pause before making your sixth “treat yourself” purchase of the week.
Your bank balance might be giving you the blues now, but with some habit-tweaking and honest self-reflection, you can change the tune. And who knows? Maybe one day you’ll open your banking app without doing that reflexive wince first.