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More Money, More Problems? Break the Habits That Keep You Broke

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More Money, More Problems? 7 Habits That Wreak Havoc With Our Finances

Money is a tool. It can build stability, or it can magnify stress. Most of the damage doesn’t come from math; it comes from habits that quietly drain momentum month after month. The good news: habits can change. Below are seven common patterns that sabotage progress—and clear, practical ways to replace them with better ones.

1) The More You Earn, The More You Spend

Ask people what would fix their finances and many will say, “I just need more income.” But without guardrails, higher income often becomes higher lifestyle—new payments, bigger subscriptions, pricier everything.

How it hurts

If spending rises with every raise, there’s no compounding savings—only compounding commitments. At $15, $30, or $60 an hour, the pattern repeats.

Examples

Bonuses disappear into upgrades: the apartment, the car, the phone, the wardrobe. Little of it moves net worth forward.

Habits to build
  • Raise rule: Pre-decide that 50% of every raise/bonus goes to savings or debt principal for 12 months.
  • Auto-save first: Move money on payday to savings/investing before lifestyle sees it.
  • 12-month waiting list: Put big lifestyle upgrades on a one-year “later list.” If you still want it after the year—and can cash-flow it—consider it.

2) Caring Too Much What Others Think

“Keeping up with the Joneses” thrives on optics: cars, travel, fashion, schools. We rarely see the financing behind the photos.

How it hurts

We benchmark against someone else’s highlight reel and ignore our own numbers. Misalignment leads to credit dependency and chronic stress.

Habits to build
  • Priority map: List your top 5 life priorities (no dollar signs): e.g., time with family, debt-free living, flexibility, travel, giving. Filter purchases through this list.
  • Tiers of spending: Label expenses as (1) survival, (2) critical convenience, (3) lifestyle, (4) trivial, (5) wishes. Trim from tier 5 down when money is tight.
  • One upgrade at a time: If you enhance housing, freeze car/clothes upgrades for six months.

3) You Become the Financial Average of Your Circle

We adapt to the norms around us—spending, saving, even debt. That influence is powerful, for better or worse.

How it hurts

Join a group where spending signals status, and you’ll feel pressure to match. In groups that under-save, saving can feel “odd.”

Examples

High-income circles that lease everything; lower-income circles that over-prioritize cars. Both can derail long-term stability.

Habits to build
  • Find a “quiet wealth” model: People who value margin, savings, and time over optics.
  • Monthly money meetup: A one-hour check-in with a trusted friend to review goals and progress.
  • Micro-frictions: Delete retail apps; remove saved cards from browsers; require a 24-hour cooling period for non-essentials.
Did You Know?

Small, automatic behaviors tend to beat big, heroic ones. People who set “save on payday” rules and recurring calendar reviews are far more likely to hit their goals than those who try to “be disciplined” without systems.

  • Automate one transfer you won’t notice (e.g., $25–$50/check).
  • Calendar a 10-minute weekly review to steer, not react.
  • Pre-commit: decide today how the next raise/bonus will be used.

4) Chasing Riches Instead of Building Wealth

Riches are visible (cars, labels, square footage). Wealth is quieter (cash, investments, ownership). One drains; the other compounds.

How it hurts

Riches require constant cash flow. Wealth requires consistent contributions. Confusing the two burns time and money.

Examples

Upgrading vehicles every few years while saving little; buying the biggest home the bank will approve instead of the home that keeps your goals funded.

Habits to build
  • Track two numbers monthly: Net worth (assets minus debts) and savings rate (total saved ÷ take-home pay). Aim to see both rise over time.
  • Default to “used and good”: Buy quality secondhand on big-ticket lifestyle items; invest the difference.
  • Define your “enough”: A clear lifestyle ceiling prevents endless upgrades.

5) FOMO Buying

Scarcity banners (“Only 3 left!”), countdown timers, annual launches—FOMO nudges us to buy quickly and think later.

How it hurts

Fear short-circuits cost–benefit thinking. The bill arrives after the dopamine fade.

Examples

Queuing for every new device; flash-sale wardrobes; “limited time” memberships that quietly auto-renew.

Habits to build
  • Wallet card: Keep a pocket-sized list of top priorities. Read it before any non-essential purchase.
  • Two-cart rule: Keep a “cooling” cart for 48 hours. If it still matters (and fits the plan), proceed.
  • Subscription audit: Quarterly, cancel anything you wouldn’t sign up for today.

6) Fleeing From Fear (Buy High, Sell Low)

When markets drop, headlines amplify panic. Without a plan, many sell low, then buy back high—locking in losses.

How it hurts

Fear trades short-term relief for long-term damage. The same pattern shows up in careers (quitting fast) and budgets (abandoning the plan the first tough month).

Examples

Dumping retirement funds during a downturn; leaving a good job after a single conflict without exploring solutions.

Habits to build
  • Pre-commitment letter: Write—and sign—a one-page note to your future self: “In a downturn, I will rebalance, not sell out.”
  • Rules, not vibes: Set allocation ranges (e.g., 70/30). Rebalance when outside bands.
  • Career rule: Address conflict directly twice before changing jobs for emotional reasons.

7) Outsourcing “What I Can Afford” to Experts

We need professionals—lenders, advisors, tax pros. The danger is abdicating the decision-making to them.

How it hurts

A lender’s maximum isn’t your optimal. An advisor’s incentives may not match yours. Blind trust is expensive.

Examples

Accepting the biggest mortgage the bank approves; paying high fees for products you don’t understand; buying insurance-wrapped “investments” when simpler, lower-cost options fit better.

Habits to build
  • Affordability is personal: Decide your target payment before you meet the lender.
  • Question set: Arrive with 8–10 prepared questions (fees, conflicts, fiduciary status, total cost over time).
  • One-page plan: Write your goals, timelines, and funding amounts. Professionals serve the plan—you don’t serve the product.
Quick Wins This Month
  • Automate $25–$50 per paycheck to savings (separate account).
  • Make one extra principal payment on your highest-interest debt.
  • Cancel one subscription and redirect that amount to your emergency fund.
Next Steps

Better money outcomes come from better money habits—small, repeatable, and aligned with what you value most. Start with one habit today. Compound from there.

About the Author

Picture of Todd Christensen

Todd Christensen

As the education manager for Money Fit, author, speaker, and financial educator, Todd Christensen develops financial education programs and provides credit and debt counseling for individuals and groups around the country. In 2014, Todd published his first 5-star-rated book, Everyday Money for Everyday People based on stories and ideas he had heard in nearly 1,000 workshops he facilitated on budgeting, credit, debt reduction, saving, and identity protection.
Visit Todd Christensen's Page

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NOTE: This sheet is to inform new or returning clients about our services, records, fees, and limitations that may affect you as a consumer of our services. This form also discloses how we might release your information to other agencies and/or regulators. If you do not understand a statement, please ask a Debt Reduction Services (DRS) counselor for assistance.

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Debt Reduction Services, Inc. complies with the privacy requirements set forth in the HUD housing counseling agency handbook 7610.1 (05/2010), including the sections 2-2 Mc, 3-1 H(2), 3-3, 5-3 F, and Attachment A.5. At all times, we will comply with all additional laws and regulations to which we are subject regarding the collection, use, and disclosure of individually identifiable information.

  1. Services: DRS provides the following housing-related services: counseling that includes Homeless Assistance, Rental Topics, Pre-purchase/Homebuying, and Home Maintenance and Financial Management for Homeowners (Non-Delinquency Post-Purchase); Education courses that include Financial literacy (including home affordability, budgeting, and understanding use of credit), Predatory lending, loan scam or other fraud prevention, Fair housing, Rental topics, Pre-purchase homebuyer education, Non-delinquency post-purchase workshop (including home maintenance and/or financial management for homeowners), and other workshops not listed above.

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NOTE: If you have an impairment, disability, language barrier, or otherwise require an alternative means of completing this form or accessing information about our counseling services, please communicate with your DRS representative about arranging alternative accommodations.

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Disclosure to Client for HUD Housing Counseling Services

Debt Reduction Services, Inc. and its financial education arm, Money Fit by DRS, offer the following housing counseling and educational services related to housing, personal finance, and bankruptcy certificates to consumers:
  • Housing Education Courses: DRS offers many online self-guided education programs classified as Financial, Budgeting, and Credit Workshops (FBC), Fair Housing Pre-Purchase Education Workshops (FHW), Homelessness Prevention Workshops (HMW), Non-Delinquency Post Purchase Workshops (NDW), Predatory Lending Education Workshops (PLW), Pre-purchase Homebuyer Education Workshops (PPW), and Rental Housing Workshops (RHW). These courses help participants increase their knowledge of and skills in personal finance, including home affordability, budgeting, and understanding the use of credit, as well as predatory lending, loan scams, and other fraud prevention topics, fair housing, rental topics, pre-purchase homebuyer education, non-delinquency post-purchase topics including home maintenance and/or financial management for homeowners, homeless prevention workshop, and other workshops not listed above relating to personal finance and housing. Course details are found below under “Housing Workshops.”
  • Home Equity Conversation Mortgage (HECM) Counseling (RMC): Via telephone and virtual platforms, we offer the required HECM counseling nationwide in addition to in-person counseling in Boise, Idaho. We also offer in-home counseling options in thirty counties across southern Idaho for an additional fee to cover our travel and additional staff time costs.
  • Home Maintenance and Financial Management for Homeowners (Non-Delinquency Post-Purchase) (FBC): Clients receive counseling and materials on the proper maintenance of their home and mortgage refinancing. Clients can find help and resources by phone, in our Boise office, or virtually on all topics related to stabilizing their long-term homeownership.
  • Services for Homeless Counseling (HMC): Clients receive phone, virtual, or in-person (Boise) counseling to evaluate their current housing needs, identify barriers to and goals for housing stability, establish a path to self-sufficiency, and connect with emergency shelters, income-appropriate housing, and/or other community resources (e.g. mental healthcare, job training, transportation, etc.).
  • Pre-Purchase Counseling (PPC): Clients receive counseling through the entire homebuying process. Assistance may involve creating a sustainable household budget, understanding mortgage options, building their credit rating, and putting together a realistic action plan to set and achieve homeownership goals.  Additionally, clients will receive materials and resources about home inspections and other homeownership topics relevant to successfully maintaining a home.
  • Rental Housing Counseling (RHC): Via phone, in-person appointments (Boise, ID), or virtual platforms, clients receive housing counseling relevant to renting, including rent subsidies from HUD or other government and assistance programs. Topics can also address issues and concerns having to do with fair housing, landlord and tenant laws, lease terms, rent delinquency, household budgeting, and finding alternate housing.
DRS also offers the following services:
  • A Debt Management Program (DMP) for consumers struggling to pay their credit cards, collections, medical debts, personal loans, old utility bills, and past-due cell phone accounts;
  • The Budget Briefing and Debtor Education Certificates that are required during the Bankruptcy filing process;
  • A Student Loan Repayment Plan Counseling and application service.

Relationships with Industry Partners

Through such services, DRS has established financial relationships with hundreds of banks, credit unions, and creditors such as American Express, Bank of America, Barclays, Capital One, Chase, Citibank, Credit One, Discover, Synchrony, US Bank, USAA, Wells Fargo, and others.

No Client Obligation

The client is not obligated to receive, purchase or utilize any other services offered by DRS or its exclusive partners to receive financial education or housing counseling services. Alternatives: As a condition of our counseling services, in alignment with meeting our client services goals, and in compliance with HUD’s Housing Counseling Program requirements, we may provide information on alternative services, programs, and products available to you, if applicable and known by our staff. Alternative DMP services include negotiating better repayment terms directly with your individual creditors, paying your debts as agreed, or, in extreme cases, filing for personal bankruptcy. Alternative credit and education services can be found through MyMoney.gov or the Jump$tart Clearinghouse of online financial education resources. Housing counseling alternatives can be found through HUD at www.hud.gov/findacounselor.
Finally, you understand that you may revoke consent to these disclosures by notifying DRS in writing.
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Housing Counseling and Education Fee Schedule

 

Online Education Program Fees*

Homebuyer Education Course: $59 per participant

  • Self-paced course available here, our online housing counseling and education center. Certificates will be automatically generated upon completion of the course (approximately 6-8 hours)

Rental, Fair Housing, Predatory Lending / HOEPA, Post-Purchase (Non-delinquency post-purchase workshop, including home maintenance and/or financial management for homeowners) Online Workshops: $49 per participant

  • Approximately 1 hour each

Other Self-Guided Financial Literacy Webinars (e.g. credit, budgeting, homeless prevention, debt prevention): $0

One-on-one Counseling Fees*

Pre-purchase Homebuying Counseling, Rental Counseling, Post-purchase Ownership Maintenance and Financial Management: $75

  • Session by the hour

Reverse Mortgage/HECM Counseling with Required Certificate:

  • $200†

Credit Report Fee: Paid Directly by Client

*Fees for all but our online education courses and workshops can be paid online by debit card, credit card, or PayPal or in person by cash, check or money order to: “Debt Reduction Services, Inc.” Registration fees are non-refundable 24 hours or less before the start of an in-person course or workshop. Certificates are non-transferable

*Fees may be waived for households with income of 150% or less of that identified on the US Department of Health and Human Services Poverty Guidelines Page

†Home visit counseling is available in 30 southern Idaho counties for potential HECM borrowers at additional costs to cover our travel (IRS reimbursement rates apply) and staff time ($50 per hour or fraction there).

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Housing Counseling and Education Fee Schedule  

Online EDUCATION Program Fees* 

eHome Homebuyer Education Course: $99 per household** 

  • Self-paced course available here, our online housing counseling and education center. Certificates will be automatically generated upon completion of the course (approximately 6-8 hours) 

Online Workshops: $49 per participant 

  • Rental, Fair Housing, Predatory Lending Post-Purchase, HECM Family Member  
  • Approximately 1 hour each 

Other Self-Guided Financial Literacy Webinars: $0 

  • Credit, budgeting, homelessness prevention, debt prevention 
  • Approximately 30-60 minutes each 

One-on-one COUNSELING Fees* 

Pre-purchase Home Buying, Renter Issues, Homelessness, and Fair Housing: $0  

Post-purchase Ownership and Maintenance, HOEPA or Financial Management $75/hr  

Reverse Mortgage/HECM Counseling with Required Certificate $200 per household†  

Credit Report Fee Paid Directly by Client 

*Fees for all but our online education courses and workshops can be paid online by debit card, credit card, or PayPal or in person by cash, check or money order to: “Debt Reduction Services, Inc.” Registration fees are non-refundable 24 hours or less before the start of an in-person course or workshop. Certificates are non-transferable 

*Fees may be waived for households with income of 150% or less of that identified on the US Department of Health and Human Services Poverty Guidelines Page 

**Household is an individual or a couple  
†Home visit counseling is available in 30 southern Idaho counties for potential HECM borrowers at additional costs to cover our travel (IRS reimbursement rates apply) and staff time ($50 per hour or fraction there)