What’s keeping so many Americans broke? Believe it or not, it often comes down to a handful of habits repeated week after week. It’s that simple. It doesn’t matter if you are a CPA or not; we all have to deal with our personal financial habits. And they well make or literally break us. Let’s break down the top five behaviors that drain wallets fast and how small changes can increase wealth and flip the script.
The average American orders takeout 4.5 times per week. At a (very generous) low estimate of $20 per order, here’s what that really looks like:
- $20 × 4.5 orders per week = $90 per week
- $90 × 4.33 weeks per month = ~$390 per month
Cutting that number in half saves about $180 every single month. That’s over $2,000 each year. Not bad for just cooking a bit more at home.
2. Not Shopping Around for Interest Rates
Big purchases (weddings, cars, mortgages) often come with big financing, and skipping the rate-shopping step can cost you thousands or evn tens of thousands.
Here’s the difference just **one percentage point** makes on a $300,000 mortgage over 30 years:
- At 6%: $1,798/month
- At 5%: $1,610/month
That’s a monthly savings of $188by simply by choosing the better rate.
Car loans? Same idea. Always compare banks, credit unions, and online lenders. For mortgages, consider whether buying down points makes sense if you plan to stay in the home long-term.
3. Impulse Shopping
The average American spends around $300 a month on things they don’t need or barely use. Often these are one-click online purchases.
A realistic goal: cut that number in half. Spending $150 instead of $300 keeps life enjoyable without draining your account.
4. Being Influenced by Friends’ Spending
You’ve probably heard the saying: “You are the average of the five people you spend the most time with.”
About 60% of Americans admit they buy things because of social influence. Going out with friends, nightlife, weekend outings, and casual entertainment add up fast. The average adult spends $400–$500 per month this way.
By cutting that in half and budgeting $200, you protect your bank account without killing your social life.
5. Lack of Career or Income Growth
One of the biggest factors keeping people stuck financially is staying in a job with no growth, no raises, and no upskilling.
Better education, certificates, new skills, or even switching professions can dramatically improve your income long-term.
Feeling stuck financially is exhausting, but your earning power is the variable you can elevate the most.
Simple Changes = Big Savings
When you add up the savings tips I have suggested thus far, they add up to a $718/month savings. That’s significant, and it can really impact how much save or can determine if you meet your monthly budget each month without going further into debt month after month.
If you found this helpful, share it with someone who needs to see it, and keep building toward a healthier financial future.