People are quick to say “money doesn’t buy happiness,” but it can create opportunities that increase happiness. Let’s have just one convo about why you may be experiencing financial struggles and 3 actions to improve your financial situation.

At a Glance: Just One Convo at a Time:

3 Financial Habits That Keep People Poor

Reason #1: Lack of access to healthy financial habits perpetuates poor choices

It’s no secret that our standard American K-12 education system did a terrible job of educating us about personal finances. As of 2025, research shows that just 30 states require high school students to take a financial literacy course to meet graduation requirements. I’ll assume you’re in the Gen Z or Millennials age range; therefore, we did not have that requirement. While there are now bills enacted to require financial literacy, we did not have that luxury, so where does that leave us? It leaves us learning financial lessons through our mistakes.

Those financial mistakes can follow us for years, especially when it comes to our credit report. If you’re anything like me and you opened a credit card in adolescence and completely ruined your credit, then you know those mistakes can follow you up to 7 years or more. To clarify, the Fair Credit Reporting Act provides credit leaders with a long-term, reliable history of your creditworthiness. Whether you like it or not, your financial habits speak volumes about your sense of responsibility.

Reason #2: Spiritually, You Have A Bad Relationship with the Frequency of Money

I am a firm believer that our life experiences depend on our energy. Because our thoughts influence our actions, you need to check your energetic relationship with money. Are you inviting the flow of money into your life or restricting it?

1. Use these journal prompts to reflect on your money thoughts
   1. How did I perceive my parents’ money management habits?
      1. Reflect Deeper: Were they impoverished? Working class? Middle class? Your parents’ tax bracket during your upbringing could’ve dictated the quality of your life.
   2. How does the understanding of parents’ money management impact my money habits?
      1. Reflect Deeper: Do you find yourself repeating their money-deflecting phrases like “I’m broke”, “I have to rob Peter to pay Paul”, or “I will never be rich”?
   3. What strategies do I have in place to respect how I spend my money?
      1. Reflect Deeper: Do you set up a yearly, monthly, or weekly budget? Do you have a savings or investment account? What’s your commitment to sticking to these strategies?

Download my journal prompt page below!

Having a reckless relationship with money is a sure way to remain struggling financially. While money is just a tool, your energy decides whether you’ll misuse it. Misusing money looks like failing to track your spending, failing to invest in the education needed to increase your net worth, and living beyond your means. Retail therapy is the worst form of therapy. It would benefit you way more to use those same funds on a licensed mental health professional who can help you identify why you need to buy items you don’t need to feel better about your situation.

I’m going to clock that tea EVERY time. No excuses. You have to have a better relationship with the frequency of money. You can’t do that without identifying how your thoughts lead your actions.

Reason #3: You’re Living Beyond Your Means

Do you have a bad case of keeping up with the Joneses? If you’re unaware of the phrase, it means living beyond your means to appear successful and rich to others when that may not be the case. I’m not saying you’re broke, but you may be operating from a broken consciousness if you’re trying to win people’s approval through earthly possessions. We live in a world where we assign value to materialistic things, but overlook the value of being a noble character. Living with noble character can coexist with wealth in both the earthly and spiritual realms. There are way too many people who have an abundance of materials but an empty soul.

Cartoon Connection: In The Fairly OddParents, the rivalry between Mr. Turner and Dinkleberg shows Mr. Turner always trying to keep up with his wealthy neighbor, Sheldon Dinkleberg. Mr. Turner kept getting into trouble trying to catch Dinkleberg. So many of us do this same thing. We purchase materialistic items with hopes of fitting in with the “in-group.” This “in-group” may include people whom you want to impress. You don’t have to be like Mr. Turner. Let’s move on to how you can avoid making the same mistakes he did.

3 Habits That Increase Your Finances

Habit #1: Know where you stand financially

Review Your Bank Statements and Spending Habits

If you’re a frequent user of your debit/credit card, then the best way to see what you spend money on is to review your bank statements. It can be more difficult to track your spending if you’re still a “Cash is King” kind of person. Reviewing any receipts you save can be a great way to observe your spending habits.

• Tracking Expenses with Your Bank Statement Method:
  1. Print out the past 3-6 months of your bank statements
  2. Use 4 Different Colored Highlights and Assign One of the Following categories to each color
     • Essential Spending
       • Rent/Mortgage, Utilities, Food, Taxes
     • Discretionary Spending
       • Gifts, Dates, Entertainment Events, Parking Fees, etc
     • Savings
     • Debt Payments
  3. Record Your Results in a Chart
     • Create an Excel Spreadsheet with these categories and their totals.
     • Divide the totals by the number of months you used to get your monthly amount.
       • For example, if you used 3 months of Bank Statements, then you’d divide your total by 3.
     • These numerical figures give you an idea of how much you’re spending each month. You can use these numbers to create a monthly budget.
• Create a Yearly & Monthly Budget
  • Using the numbers you found from the Bank Statement Tracking exercise, create a yearly and monthly budget.
• Invest in Money Tracking Tools
  1. Rocket Money
     • This app is one of my favorite money tracking tools! Rocket Money partners with secure data networks that ensure information safety. This tool tracks all spending that occurs on your Debit/Credit Accounts, Credit Report, and Investments. For me, it’s an all-in-one place, AND it automatically transfers a percentage of my savings to my Rocket Money savings account. I invest $10/month in this tracking tool
  2. myFICO
     • If I’m being honest, my credit score needs some real work! I made significant mistakes in my early 20s that have had consequences I’m still facing today. I invest $40/month in the Premier myFICO package. My favorite feature is the monthly credit reports from all three credit bureaus. I won’t need this subscription forever, but it’s great for actively improving my credit score. Once I reach my credit score goal, I will reallocate this $40 investment into my stock portfolio.
  3. Fidelity
     • I use one of the world’s largest asset managers to manage my personal investments. I invest in savings, one of my retirement accounts, and stocks through this platform. I highly recommend opening an account with them!

Habit #2: Set a Financial Savings Goal and Stick With It

To improve your financial situation, you need to set savings goals and stick with them. It’s important to set a realistic savings goal that accounts for your expenses. If you’re going to set up a savings goal, then you need to break it down into digestible pieces. For example, if you want to save $1 million, then you have to be mindful of the habits that you need to accomplish this goal. Those habits will reveal themselves in the discipline you acquire when putting money into savings. Saving is not just about stashing money away. It’s about building a system where you control your money, not the other way around.

Read More: Save More Money: 3 Benefits of a High-Yield Savings Account

Habit #3: Develop a System of Accountability

Your financial upbringing is not your fault, but your current financial situation is your responsibility. You can make excuses all you want, but it won’t change your financial situation. Let’s be clear: I’m not dismissing the economy’s impact on your situation. I understand how discouraging it can feel to have little to no financial stability. It can feel impossible to “pull yourself up by your bootstraps” when you don’t have the materials or knowledge. What I am encouraging you to do is to get serious with your financial goals. Start with what you have. If in 6 months, you haven’t made progress toward your goals, then that’s on you – you can’t blame anyone else.

Example Personal Systems of Accountability

• Block Time for Priorities
• Use Habit & Progress Tracking Apps
  • Habit App
• Establish Accountability Buddies

Your Holistic Wellness & Happiness Increase When You’re Financially Responsible

Developing financial accountability and discipline significantly improves your quality of life and experience. Often, we are told that “money is the root of all evil,” but they tend to forget to mention that it’s love for or idolization of money that can lead to evil acts. Having your finances in order is a healthy practice, as we all need money to live. Money is simply a tool that we use to improve the quality of our lives. Are you going to apply any of these actions to your life? Let me know in the comments below!