6 Habits That Will Keep You Broke!

Published in Financial Horizons: Insights for Building Wealth and Securing Your Legacy
By Dr. Jose G. Cardenas, DBA
Chief Tax Strategist, The C & R Group, LLC

We all want financial independence, but sometimes it's not the big life events or the market downturns that hold us back—it’s the small habits we overlook. If you're trying to build wealth, eliminate debt, and stop living paycheck to paycheck, these six habits could be silently sabotaging your progress. Let’s break them down and explore how to turn them around.

1. Not Talking About the Money

One of the most financially damaging habits is silence. Many individuals and couples avoid discussing finances due to discomfort, fear, or past trauma. But staying quiet leads to misaligned goals, unaddressed debt, and missed opportunities.

Solution:
Start a regular “money talk” routine. Whether with your spouse, business partner, or financial advisor, open conversations help build accountability and strategy. Transparency is the foundation of transformation.

2. Failing to Build an Emergency Fund

Without a financial cushion, even small emergencies become disasters. Whether it’s a flat tire, a medical bill, or temporary unemployment, the inability to cover unexpected costs drives people straight into debt.

Solution:
Start small—aim for $500 to $1,000. Then gradually grow it to cover 3–6 months of essential expenses. Automate contributions from your checking account to make saving a habit, not an afterthought.

3. Making Impulse Purchases

Retail therapy may feel rewarding in the moment, but it often leads to regret and revolving debt. Flash sales, targeted ads, and FOMO (fear of missing out) trigger spending that has nothing to do with our goals.

Solution:
Implement the 48-hour rule: Wait two days before purchasing anything non-essential. More often than not, the impulse fades—and you keep your cash.

4. Buying Items You Don’t Need

We live in a culture of consumption. New gadgets, trending fashion, and lifestyle upgrades promise happiness—but deliver clutter and financial strain.

Solution:
Ask yourself, “Will this item help me build wealth or peace of mind?” If not, it’s likely a want, not a need. Invest in assets, not liabilities.

5. Paying Bills Late

Late payments not only damage your credit score, but they also come with costly fees and interest charges. Over time, this snowballs into financial chaos.

Solution:
Set up automated payments or calendar reminders. Better yet, manage your cash flow with a simple monthly budget that ensures every bill is paid on time, every time.

6. Improper Use of Credit Cards

Credit cards can be powerful tools—or destructive traps. Carrying a balance month to month accrues high-interest debt and limits future financial flexibility.

Solution:
Only charge what you can afford to pay off in full each month. Track your spending, and if necessary, use cash or a debit card to stay disciplined. And remember—credit cards aren’t free money, they’re borrowed money.

Final Thoughts: Financial Freedom is Built on Better Habits

Breaking these habits isn’t about deprivation—it’s about direction. Your financial health is the result of small, consistent actions compounded over time. As a veteran, business owner, or professional, you’ve worked hard for your income. Let’s make sure it works just as hard for you.

If you're ready to eliminate bad money habits and build a personalized, tax-optimized wealth plan, schedule a financial review with us today. The C & R Group, LLC is here to help you protect your legacy, reduce taxes, and build lasting wealth—one smart decision at a time.

Related Resources:

• Maximizing Wealth and Minimizing Taxes: Strategies for Financial Success (Book)
• Investing Against the Devil: How to Build Wealth and Riches in the Military
• Insurance Essentials: Protecting Your Finances and Future