13 Bad Habits That Will Keep You From Getting Rich

Ever wondered why you’re not rich yet? You work hard, you bring home enough money, but you never seem to get anywhere. The savings account is empty and you feel as though you have nothing to show for it. Likelihood is, you’ve fallen into one of these bad habits. These are the worst habits to have if you want to be rich.




It’s a surefire way to lose your money, so why bother? Rich people don’t gamble. And if they do, it’s only because they have more money than they know what to do with. If you want to get to that level then you need to stop gambling. Yep, that even means stopping buying that lottery ticket. What else could you do with those few dollars every week? Put them in a jar and save up for something you really want.


Being Too Generous

There’s nothing wrong with being a little bit generous now and then. However, don’t let people take your kindness for granted. Most rich people get where they are by being stringent with their money. This means not lending it to friends or buying all the drinks at the pub. Reserve that money for yourself, until you’re rich and can afford to be generous. Then you can buy as many rounds as you like!


Impulse Spending

This is one of the worst habits you can have if you want to be rich. It’s also one of the hardest habits to break. Take all of the emotion out of buying things and you’ll find you’re far less likely to impulse spend. Make a plan of what you want to get and then save to reach each of those goals. You’ll feel better for it and your bank balance will look healthier too.


Housing Costs

You should be spending no more than 25% of your net income on all housing costs. This includes any rent or mortgage, bills, insurances, maintenance and so on. This should be the area that you spend most of your hard earned cash on. However, it shouldn’t be more than you can afford. If you’re spending more than 25% look for ways you can cut down. You may have to move house or change utility providers, but there are ways to do it.



The next biggest thing to be spending money on is food. No more than 15% of your net income should be spent on all of your groceries. However, don’t include takeaways and meals out in this bracket. That comes under the entertainment section which we’ll look at shortly. It’s far cheaper to plan your meals in advance and do a weekly shop. Freshly prepared meals will also save you money, compared to convenience and ready meals.



No more than 10% of your net income should be spent on anything that could be considered as entertainment. This includes buying prepared food (i.e., eating out). You also want to include buying gifts for other people within this entertainment budget, so plan accordingly. From bar crawls to movie nights, anything that gives you something to do is included as entertainment. This also includes buying books, movies and games.  Cut down on your weekends out, and see what a difference it makes.



Next up on the list is clothing. No more than 5% of your net income should be spent on clothing – and every rich person will tell you that. Even those who are considered fairly wealthy tend to buy their clothes secondhand and then get them tailored. You’ll find it saves you a lot of money and you can wear designer brands for less. Even the rich and famous get their clothes on the cheap. Usually for free, from designers.



This is another section you shouldn’t be spending any more than 5% of your net income on. You should include everything that your vehicle requires, including any loans you used to take it out. Don’t forget that all of your fuel and maintenance costs will come under this category. Put a small percentage of your earnings aside for any repairs that may be needed. You’ve then got an emergency fund should the worst come to the worst.



Your final 5% of spending can go toward vacations. This is where you need to plan and save. Putting aside 5% of your net income every month for a vacation will ensure you get a holiday once a year. Depending on how much you earn this could be a weekend mini break or a luxury, two week vacation. Be smart with your vacation fund and it will go far.



For those who have a mathematical mind, you’ve probably worked out that the outgoings we’ve listed above total 65% of your net income. So, what happens to the other 35%? It should all be put into savings. By clever budgeting you’ll be surprised at how much you can save over a period of time. Don’t forget to have separate savings for vacations and emergencies (such as your car breaking down).


Credit Cards

Don’t live above your means, by putting your household expenses on your credit card. If you can’t afford to pay the bills then you should be looking at what needs to change. Do you need to move house? Can you cut down on any other costs? Putting living expenses on a credit card is a surefire way to end up poor, very quickly. Credit card debt is the third biggest cause of bankruptcy, so don’t fall into the trap.


Little Things

The little things all add up. If you’re buying lunches at work then it should come under your entertainment budget. Buying lunches every day will surely put you over your 5% allowance. Especially if you’re going out at the weekend too. Make sure you keep an eye on all those little things. Although it may be a few dollars here and there, it all adds up. Make a list of everything you spend on, and keep your receipts. You’ll soon see where you’re going wrong.


Your Job

It could be your job that’s stopping you from being rich. In most cases, it’s likely a big deciding factor. Don’t just settle for something just because it’s going to tide you over. Always be on the lookout for something that is better paid. Especially if you’re already struggling to meet your living expenses. Never quit a job before finding another one. And look for ways you can move up in the company, if you like where you work.