Your mother taught you to share. Your pastor taught you to sacrifice. Your school taught you to obey. But who taught you to build wealth? Likely No one. That’s why many of us are generous and dutiful—but broke.
You were never trained to protect your money, only to earn, spend, save or invest. But if you don’t guard your financial future, who will? Your friends? Your culture? Your guilt?
Your habits determine how your income, expenses, savings or investments, shape your financial future. Let’s uncover the habits holding you back and how to fix them.
Table of Contents
- What Are Money Habits?
- Good vs Bad Money Habits
- Why Habits Beat Salary
- The Psychology Behind Money Habits
- Habit-Made Success vs Failure
- Personal Money Habit Assessment
- Daily Habit Reboot Plan
- Common Misconceptions
- Final Challenge
- Tools & Resources You Can Use Now
- FatCat Glossary
Money habits are the small, repeated, unconscious actions you take with your money.
They dictate how you earn, spend, save, invest, and relate to money. They're not just financial. They're deeply emotional, cultural, and psychological.
Most people think they're "bad with money" when really, they're just stuck in bad money routines shaped by upbringing or societal pressures.
From social media to chop money culture to family black tax, your environment shapes your daily money choices. Most people don’t even know they have a habit problem until they’re knee-deep in debt or have no savings at 45.
> "Habits are the invisible scripts running your financial life."
Good Money Habits: Habits That Create Wealth
1. Paying yourself first
2. Automating Savings & Bills to reduce emotional interference
3. Budgeting before the month starts or you get your salary
4. Investing regularly (even small amounts)
5. Tracking expenses regularly
6. Diversifying Income Streams.
7. Constantly increasing your financial knowledge.
Bad Money Habits: Habits That Keep You Stuck
1. Spending emotionally
2. Borrowing for lifestyle(fashion, parties, gadgets)
3. Delaying savings
4. Living without a plan
5. Ignoring financial education
6. Avoiding budgeting
7. Not investing or ignoring investment opportunities
8. Giving everyone money first
> Local Example: In Nigeria, many prioritize funding family events (e.g., weddings) over personal savings, mistaking obligation for loyalty.
Someone earning $100 a day with good habits can outperform someone earning $1,000 a day with bad habits. Why? Because habits compound over time. They create systems. Systems create stability.
Opportunity Cost: Every time you spend impulsively, you sacrifice: Future investments. Financial freedom. Peace of mind.
> “Broke isn’t always low income. It’s often poor planning.”
THE PSYCHOLOGY BEHIND MONEY HABITS
1. Loss Aversion: We fear losing money more than we like gaining it. So we avoid investing.
2. Shame: We don’t ask for help or education. We either hide financial struggles or pretend to know.
3. Cultural Guilt: We give beyond our capacity out of shame, family or societal expectations/obligation or to look like “good people.”
4. Status Quo Bias: We cling to old or familiar habits, even when they harm us.
5. Sunk Cost Fallacy: You keep funding bad ideas because you've already put money in.
6. Scarcity Mindset: You hoard or overspend because you fear you'll never get more.
Which money decision have you made just to avoid feeling guilty? Some of us are just to afraid to say “NO”
HABIT-MADE SUCCESS VS FAILURE
Lizzo, a 26 year old teacher, Earns $3,000 monthly, gives half to her extended family and has little savings. When rent and food prices increased, she had to take a high interest payday loan. Following this cycle, She eventually went deep into debt. Her family still calls her to help out with the bills but no one helped her with her debts.
José Earned $500/month as a part-time driver. Despite a tight budget, he saved 15% monthly and invested $200 in an online graphic design course. Within 18 months, his freelance work earned $2,000/month. But he still couldn't support his family without strain. So he gave what he could after covering his expenses and putting money aside for more investments. A year later, he was earning $8,000/month, allowing him to support his family better.
Lesson: Both people loved supporting their family but one had a habit of paying family first and the other paid himself first.
Prioritizing your financial health empowers you to help others sustainably.
“You can lift others up, but only if you’re standing on solid ground.”
PERSONAL MONEY HABIT ASSESSMENT
Ask yourself:
1. How often do I learn more to increase my financial literacy?
2. Do I have a savings plan?
3. How often do I invest?
4. Am I always broke before month end?
5. Do I save before or after spending?
6. How often do I track my expenses?
7. Do I borrow for wants or needs?
8. Do I track impulse purchases?
9. Can I account for at least 80% of my monthly spending?
1. Check your budget plan
2. Avoid social media spending triggers
3. Regularly transfer a portion of your income into your stash account
4. Reflect on What did you do with your money at the end of the day?
5. Track your expenses
6. Review your Budgeting strategy weekly
7. Set one new habit goal each month
8. Reward yourself
DOS:
- Automate savings
- Track expenses visually for motivation
- Join a finance accountability group
DON'TS:
- Delay planning till payday
- Borrow for celebration or status
- Rely on “vibes” for financial decisions
1. Budgeting Means Restriction: Budgeting creates freedom by clarifying priorities.
2. You Need A Big Income To Save: Small, consistent savings build wealth over time.
3. Loans Are A Normal Part Of Life: Non-essential loans often lead to financial stress.
4. Family And Culture Come Before Your Finances: Securing your finances strengthens your ability to support others. It's you first or everyone loses.
FINAL CHALLENGE
Your habits shape your financial future. Confront the guilt, fear, or traditions holding you back. Pick one habit to change today—track it for 30 days. Your culture, background shapes you, but you shape your wealth. Start now
Next time: We talk about
what traditional schools teaches young people today that actually drains their wallets (
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Tools & Resources You Can Use Now
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