Do you ever wonder why you’re always struggling with money, despite trying your best to save? Often, it’s not the big expenses but the small, unnoticed habits that drain your finances. Here are 10 surprising money habits that might be keeping you broke—and tips on how to change them to get ahead financially!
1. Impulse Shopping on “Small” Items
It feels good to buy a quick coffee, snack, or magazine on the go. These purchases seem small, but they add up. For example, if you spend UGX 5,000 on coffee every day, that’s UGX 150,000 a month—over UGX 1,800,000 million a year!
How to Fix It: Set a budget for these small treats, or make coffee at home. Financial experts call these “money leaks,” and plugging them is one of the first steps toward financial freedom.
2. Keeping Subscriptions You Don’t Use
Netflix, gym memberships, music streaming services—monthly subscriptions add up fast. Many people underestimate how much they spend on these, often by thousands of shillings.
How to Fix It: Review your subscriptions and cancel any you don’t use. If you rarely watch Netflix, consider renting movies instead. Apps can help track and cancel unused subscriptions, saving you with a few clicks.
3. Relying on Credit for Emergencies
Credit cards are handy, but relying on them for emergencies can lead to debt. Using a high-interest credit card for unexpected expenses costs more in the long run.
How to Fix It: Build an emergency fund, even if you start small. Setting aside UGX 20,000 a week can help create a safety net, reducing the need for credit in emergencies.
4. Not Negotiating Your Bills
Many people don’t realize they can negotiate bills like internet or phone plans.
How to Fix It: Call your service providers and request lower rates, especially if you’ve been a loyal customer. Check competitors’ rates to use as leverage.
5. Focusing on Income Instead of Net Worth
It’s easy to focus on how much you make instead of what you keep and grow. Two people with the same income can have very different net worths based on their saving and investing habits.
How to Fix It: Track your net worth, not just your income. Look for ways to build assets like investments and reduce debt. Apps can help you get a clear view of your financial health.
6. Living Above Your Means
It’s tempting to upgrade to a better car, phone, or home when people around you are doing the same. But living paycheck to paycheck to fund a high-cost lifestyle prevents real financial growth.
How to Fix It: Practice living within or even below your means. Find joy in what you already have, and remember that financial success is about having more freedom, not just more things.
7. Ignoring Your Credit Score
Your credit score affects loan approvals, mortgage rates, and more. Not paying attention to it can cost you a lot over time.
How to Fix It: Regularly check your credit score through free resources. Improve it by paying bills on time and keeping credit card balances low. A good credit score can save you thousands in loan interest.
8. Shopping for Status
Buying things to “keep up” with others can drain your money. Whether it’s the latest smartphone or designer clothes, overspending to fit in often leads to stress.
How to Fix It: Spend mindfully. Ask yourself if a purchase is something you need or if you’re just buying it to impress others. Financial independence is more rewarding than temporary approval.
9. Not Automating Savings
Saving only what’s “left over” at the end of the month rarely grows your wealth. Automated savings let you build wealth steadily without thinking about it.
How to Fix It: Set up an automatic transfer to your savings account each payday. This habit adds up over time. As Warren Buffett says, “Save first, spend what’s left.”
10. Ignoring Investment Opportunities
Many people avoid investing due to fear or lack of knowledge. But leaving all your money in a low-interest savings account won’t grow your wealth. Investing a small amount consistently can make a big difference.
How to Fix It: Start small with investing. Apps make it easier than ever to invest, even for beginners. Compound interest over time turns small amounts into significant gains.
Breaking these habits takes time, but each small change can make a big impact on your financial future. Financial success isn’t about how much you make—it’s about how well you manage it. By identifying and changing these habits, you’re already on your way to a stronger financial foundation.