Eliza Hartley
We all know that being disciplined with money is key to achieving financial security and peace of mind—especially as we get older. Yet, so many of us fall into habits that quietly drain our wallets, leaving us wondering where all our hard-earned cash went.
Financial discipline isn’t just about earning more or cutting out every single indulgence. It’s about recognizing the behaviors that hold you back and making intentional changes to align with your long-term goals.
With that in mind, here are five habits you’ll want to leave behind to take control of your finances and thrive as you age.
1) Impulse buying
Impulse buying is a common habit that wreaks havoc on your financial discipline. In fact, according to Capital One, the average consumer in 2024 is spending a whopping $281 a month on unplanned purchases.
Let’s face it, we’ve all been there. You’re at the store, or browsing online, and something catches your eye. It’s not something you need or even particularly want, but the urge to buy it is strong. So you do.
It’s a habit that’s easy to fall into, especially with the convenience of online shopping and credit cards. But it’s a habit that can drain your wallet quickly, often without you even realizing it.
The key to being more disciplined with your money as you get older is to recognize when you’re about to make an impulse buy and stop yourself. Ask yourself if you really need it or if your money could be better spent elsewhere.
If this is something you really struggle with, you also might want to consider limiting exposure to tempting ads by cutting back on social media or adopting a rule where you wait 24 hours before making any purchase.
2) Trying to keep up with the Joneses
This is a huge one—and financial experts often call it out as a major obstacle to building wealth. Morgan Housel, author of The Psychology of Money (great book by the way), sums it up perfectly:
“Spending money to show people how much money you have is the fastest way to have less money.”
It’s natural to compare ourselves to others and feel the urge to “keep up.” Maybe it’s the neighbor with the new car, the coworker flaunting designer bags, or friends posting exotic vacations on social media.
But chasing these comparisons can spiral out of control, wreaking havoc on your finances and pulling you away from what really matters.
The key is to stop comparing yourself to others. The only person you should measure yourself against is who you were yesterday. Instead of worrying about what others are doing, focus on aligning your spending with your personal goals and values.
When you stop buying things to impress others and start making purchases that genuinely improve your life, you’ll feel a lot more financially secure—and a whole lot happier too.
3) Using a credit card for everything
Let’s be real: credit cards have some undeniable advantages. They’re convenient, offer rewards like cash back or travel points, and can help you build a solid credit score if used responsibly.
But here’s the thing: credit card companies don’t provide these perks because they want to help you.
They offer them to encourage you to spend more money—and research shows it works. According to studies cited by NerdWallet, people tend to spend more when using credit cards compared to cash.
This can quickly spiral out of control, especially when paired with sky-high interest rates. With the median credit card interest rate now hovering around 25%, carrying a balance can snowball into overwhelming debt in no time.
Now, I’m not saying you should cut up your credit cards. They can still be useful tools if used strategically.
However, it’s important to set boundaries. Try using your credit card only for planned purchases you can pay off in full each month, and stick to a budget to avoid overspending. By being mindful, you can take advantage of the benefits without falling into the debt trap.
4) Not setting financial goals
Imagine setting out on a journey without a destination in mind. You might enjoy the ride for a while, but eventually, you’ll start to feel lost, aimless.
That’s what it’s like to manage your finances without setting goals.
Financial goals give you a sense of direction. They help you understand where your money is going and why. And more importantly, they give you something to strive for, a reason to stay disciplined.
Whether it’s saving for a down payment on a house, paying off student loans, or building an emergency fund, having financial goals can change the way you view and handle your money.
So say goodbye to aimlessly managing your finances. Set some financial goals that matter to you. Because when your heart is in it, discipline comes naturally.
5) Neglecting to track your spending
Last but not least, if you’re not keeping tabs on where your money is going, you might be setting yourself up for financial trouble.
It’s easy to assume you know your spending habits—but small, seemingly insignificant purchases can add up fast and quietly derail your budget.
The good news? Tracking your spending doesn’t have to be complicated. Apps can make it easy, or you can simply write it down in a notebook.
The goal is to create awareness of your financial habits and spot patterns that might be working against you.
By keeping a close eye on your expenses, you’ll not only avoid unnecessary overspending but also feel more in control of your money—and your future.
Final thoughts: Your money, your choices
Building financial discipline takes time, effort, and self-awareness, but the rewards are well worth it.
By letting go of these common habits and replacing them with smarter money practices, you’ll set yourself up for a more secure and stress-free financial future.
It’s not about being perfect or never treating yourself—it’s about staying intentional and making choices that align with your long-term goals. Each small step you take today can lead to big improvements over time.
So, say goodbye to the habits holding you back and hello to a more disciplined, empowered approach to managing your money. Your future self will thank you!
