Money habits that might be keeping you from getting ahead
Written and accurate as at: Jul 13, 2026 Current Stats & Facts
Do you ever check your bank balance at the end of the month and wonder, "where did all my money go?" Even if you're earning a decent income and doing your best to stay on top of your finances, it can sometimes feel like you're running hard without getting very far.
Of course, there are things outside our control, and inflation, interest rates and global events can all put their thumb on the scale in ways that can be difficult to counteract. But sometimes the culprits are those small behaviours of our own that we give very little thought to.
Left unchecked, these can slow your progress towards goals like paying off debt or buying a home, and gradually undermine your long-term security. Here are some common money habits that may be holding you back.
Lifestyle inflation
Received a pay rise recently? Few would fault you for wanting to celebrate, but you’ll need to be careful that higher income isn’t completely erased by needlessly high spending.
Often that takes the form of upgrades to cars or tech, which can be wasteful if your current model still serves its purpose perfectly well. Before upgrading, ask yourself whether the purchase meets a genuine need or just satisfies a temporary desire for something new.
And while you should be able to enjoy the rewards of your hard work, try to direct at least part of each pay rise towards savings, investments or debt reduction. That way your income and your financial progress aren’t moving in opposite directions over time.
Excessive cash holdings
Having a cash buffer is an important part of any financial plan, but if you’re holding excessively large amounts of cash without a clear purpose, you might be missing out on opportunities elsewhere.
That's because while cash can provide security and easy access, it typically delivers lower returns than other growth assets. And if inflation is tracking higher than your bank’s interest rate, your money’s purchasing power is essentially declining.
So if you have an emergency fund in place and enough cash on hand to cover your short-term needs, investing any surplus could give your money a better chance to grow and outpace inflation.
Only making minimum repayments
Making the minimum repayment on your credit card might keep your lender out of your hair, but it’s worth remembering that it’s designed to cover only a small portion of what you owe. Your remaining balance continues to accrue interest, meaning you could end up paying significantly more over time.
If you can, aim to pay off your credit card balance in full each month. And if that’s not realistic at the moment, paying even a little more than the minimum can still reduce the interest you pay and help you become debt-free sooner.
BNPL when used irresponsibly
Buy Now, Pay Later services can be convenient when managed sensibly; the challenge is that splitting purchases into smaller instalments often makes it feel like you’re spending less than you actually are. Tack on another BNPL purchase, and another, and it can get quite hard to stay on top of your other financial priorities.
So before turning to BNPL, make an effort to understand what you currently owe and how adding another commitment might impact your cash flow. You might be better off saving up and making the purchase with cash, or even giving it a miss altogether.
Subscription creep
Streaming services, fitness apps, cloud storage and software subscriptions can seem fairly inexpensive on their own, but the combined cost can amount to hundreds or even thousands of dollars each year.
Try to conduct a periodic review of your subscriptions and see if there are any you’re willing to say goodbye to. If you haven’t been keeping track of them (or regularly checking your bank transactions), you might find you’re paying for services you had completely forgotten about, so your cull might not even affect your lifestyle too much.
Status (or social media-driven) spending
You’ve probably felt that twinge of envy when scrolling through your social media feed. While this is normal, what matters is how you let it affect you. If constant exposure to images of luxury holidays, renovated homes and designer products stirs up feelings of inadequacy and the first remedy you reach for is online shopping, it might be worth limiting your social media usage.
You don't necessarily need to delete your social media accounts, but it might be worth unfollowing pages that leave you feeling like you're falling behind or even setting daily screen time limits.
Impulse buying
Spontaneous purchases, emotional spending after a stressful day, signing up for deals without fully considering the long-term cost, and panic-selling during a market downturn – these are all examples of impulsivity at work.
The challenge is that short-term decisions can have long-term consequences. To help rein in your impulsivity, try setting up small barriers, like waiting 24 hours before making a purchase or changing your internet browser settings so your payment details don’t automatically fill in at checkout.
In the end, building wealth rarely comes down to a single decision. Rather, it's shaped by the choices you make consistently over time. That means embracing habits that move you closer to your goals just as much as avoiding the ones that hold you back.