Breaking Free: Identifying and Overcoming Financial Habits That Hinder Your Success

John Adams, 1/20/2025This article highlights the detrimental financial habits identified by experts Rachel Cruze and George Kamel, urging readers to confront procrastination, consumerism, and impulsive spending to forge a more secure financial future as we approach 2025.

One prevalent issue they highlighted is the tendency to procrastinate on financial goals. People often tell themselves, "I'll just do it next year, I'll get to that later or I'll save when I'm older." Yet, as Kamel astutely noted, the repercussions of such procrastination can be profound—delaying action ultimately prolongs the path to achieving one’s financial aspirations. The clock will not wait, and neither should we.

Another common misstep is maintaining a blissful ignorance regarding one’s bank account balance. Cruze pointed out that many individuals prefer to remain unaware of their financial situation, a mindset that Kamel likened to avoidance—citing the phrase, "I don't want to look at my bank account because I don't need that negative energy in my life." This psychological barrier can result in unwelcome surprises, such as unexpected overdraft fees, which have affected nearly 20% of Americans, according to a recent Chime study.

The notion of relying on credit cards as a fallback—the so-called “emergency fund” for many—is another habit that warrants reevaluation. Cruze articulated a critical perspective: “I don’t think people always are like, 'Oh, yeah, the credit card companies are for me.'” Instead, for many, it becomes a default strategy in the absence of adequate savings. Financial experts typically recommend setting aside three to six months’ worth of living expenses in a dedicated account for emergencies. A small reserve can provide much-needed relief, rather than succumbing to the high-interest trap of credit card debt.

Then there’s the issue of purchasing items simply because they are on sale. "Just because it's on sale doesn't mean it's a good deal," Kamel wisely warned—echoing a sentiment that reflects a contemporary consumer culture increasingly driven by retail promotions. Many fall victim to the marketing ploys that manipulate our desire for savings, leading to unnecessary expenditures on items that may not even be essential. According to Maps Credit Union, this habitual purchase can be detrimental when it strays beyond the realms of planned and budgeted spending.

Social media exacerbates another harmful habit—comparing oneself to others. In an age where curated lives are broadcasted for all to see, it becomes easy to feel inferior or inadequate financially. Kamel urged the importance of cultivating contentment amidst the constant barrage of online portrayals of success: “Even as you ... get better in your career, you get better with money … there’s always someone who’s nine steps ahead of you.” This underlines the necessity of focusing on personal progress and satisfaction rather than external benchmarks.

Subscriptions—those nefarious automatic deductions—similarly demand careful scrutiny. Americans reportedly spend an average of $91 monthly on subscriptions, with nearly half admitting to forgetting about free trials that transition into monthly payments. Streamlining personal expenses and eliminating unused subscriptions could yield significant savings, reinforcing the need for financial mindfulness.

In an age where privacy breaches are rampant, the sharing of personal financial information online presents yet another peril. Cruze cautioned against hastily disclosing sensitive details, advising individuals to engage with only trusted sites and maintain vigilant control over their data. Consumer Reports suggests minimizing the information shared by devices with apps to enhance security—an imperative in this digital age.

Furthermore, justifying impulse purchases—often framed as harmless splurges—can silently erode one’s financial foundation. Kamel acknowledged that while treating oneself is acceptable, it should be done within the confines of a budget, in line with larger financial goals. Every dollar spent impulsively can redirect resources away from meaningful savings or investments.

Lastly, the fear of missing out (FOMO) can steer financial decisions off course. This pervasive anxiety might prompt individuals to raid their emergency funds or incur unnecessary debt to participate in trends or experiences that do not align with their financial reality. By allocating a small portion of income for discretionary spending, individuals can enjoy social activities without compromising their financial integrity.

As 2025 approaches, these insights from Cruze and Kamel serve as a timely reminder to evaluate our financial habits critically. By identifying and breaking free from these detrimental behaviors, we can cultivate a healthier relationship with our finances—one that is built on responsibility, awareness, and foresight.

As we approach 2025, personal finance experts Rachel Cruze and George Kamel have identified several detrimental habits that many individuals cling to—a mix of avoidance, impulsiveness, and social pressures that consistently undermine financial stability. In their recent discussion, they emphasized the necessity to shed these behaviors to pave the way for a more prudent financial future.One prevalent issue they highlighted is the tendency to procrastinate on financial goals. People often tell themselves, "I'll just do it next year, I'll get to that later or I'll save when I'm older." Yet, as Kamel astutely noted, the repercussions of such procrastination can be profound—delaying action ultimately prolongs the path to achieving one’s financial aspirations. The clock will not wait, and neither should we.Another common misstep is maintaining a blissful ignorance regarding one’s bank account balance. Cruze pointed out that many individuals prefer to remain unaware of their financial situation, a mindset that Kamel likened to avoidance—citing the phrase, "I don't want to look at my bank account because I don't need that negative energy in my life." This psychological barrier can result in unwelcome surprises, such as unexpected overdraft fees, which have affected nearly 20% of Americans, according to a recent Chime study.The notion of relying on credit cards as a fallback—the so-called “emergency fund” for many—is another habit that warrants reevaluation. Cruze articulated a critical perspective: “I don’t think people always are like, 'Oh, yeah, the credit card companies are for me.'” Instead, for many, it becomes a default strategy in the absence of adequate savings. Financial experts typically recommend setting aside three to six months’ worth of living expenses in a dedicated account for emergencies. A small reserve can provide much-needed relief, rather than succumbing to the high-interest trap of credit card debt.Then there’s the issue of purchasing items simply because they are on sale. "Just because it's on sale doesn't mean it's a good deal," Kamel wisely warned—echoing a sentiment that reflects a contemporary consumer culture increasingly driven by retail promotions. Many fall victim to the marketing ploys that manipulate our desire for savings, leading to unnecessary expenditures on items that may not even be essential. According to Maps Credit Union, this habitual purchase can be detrimental when it strays beyond the realms of planned and budgeted spending.Social media exacerbates another harmful habit—comparing oneself to others. In an age where curated lives are broadcasted for all to see, it becomes easy to feel inferior or inadequate financially. Kamel urged the importance of cultivating contentment amidst the constant barrage of online portrayals of success: “Even as you ... get better in your career, you get better with money … there’s always someone who’s nine steps ahead of you.” This underlines the necessity of focusing on personal progress and satisfaction rather than external benchmarks.Subscriptions—those nefarious automatic deductions—similarly demand careful scrutiny. Americans reportedly spend an average of $91 monthly on subscriptions, with nearly half admitting to forgetting about free trials that transition into monthly payments. Streamlining personal expenses and eliminating unused subscriptions could yield significant savings, reinforcing the need for financial mindfulness.In an age where privacy breaches are rampant, the sharing of personal financial information online presents yet another peril. Cruze cautioned against hastily disclosing sensitive details, advising individuals to engage with only trusted sites and maintain vigilant control over their data. Consumer Reports suggests minimizing the information shared by devices with apps to enhance security—an imperative in this digital age.Furthermore, justifying impulse purchases—often framed as harmless splurges—can silently erode one’s financial foundation. Kamel acknowledged that while treating oneself is acceptable, it should be done within the confines of a budget, in line with larger financial goals. Every dollar spent impulsively can redirect resources away from meaningful savings or investments.Lastly, the fear of missing out (FOMO) can steer financial decisions off course. This pervasive anxiety might prompt individuals to raid their emergency funds or incur unnecessary debt to participate in trends or experiences that do not align with their financial reality. By allocating a small portion of income for discretionary spending, individuals can enjoy social activities without compromising their financial integrity.As 2025 approaches, these insights from Cruze and Kamel serve as a timely reminder to evaluate our financial habits critically. By identifying and breaking free from these detrimental behaviors, we can cultivate a healthier relationship with our finances—one that is built on responsibility, awareness, and foresight.