We create barriers in our own paths. We make excuses. Too often, we become our own worst critics.
The same holds true with money. Ask yourself, Why don’t I have more money? The answer usually is that poor financial habits slowly creep in. We chip away at our own prospects for monetary success. In short, we rob ourselves.
Below are 10 common ways people undercut their finances — and practical alternatives to try instead.
1. Believing You Don’t Have Enough to Invest in Property
Look at many of the world’s wealthiest individuals and you’ll notice a pattern: a lot of them hold stakes in private real estate. The surprising part? You don’t need a fortune to get started — sometimes just $10 will do.
Fundrise is a platform that opens the door to real estate investing by offering access to a diversified, cost-effective portfolio of private property. The biggest perk? You don’t have to manage tenants; Fundrise handles the operational work.
The Starter Portfolio from Fundrise has a minimum entry of only $10 and is aimed at prospective real estate investors. Funds are placed into the company’s Flagship Fund, which already controls more than $250 million in properties nationwide — from apartment complexes to the booming rental market to last-mile e-commerce distribution hubs.
If you’re ready to commit more capital, Fundrise provides multiple account tiers and tools to suit different investor needs. Once you’re invested, you can monitor performance on the Fundrise website or mobile app and watch as properties are acquired, renovated and managed. As tenants pay rent, you could receive quarterly dividend payouts and potentially benefit from property appreciation over time. Since 2014, Fundrise investors have collected roughly $100 million in dividends alone.
So if you want to step into real estate investing, registering for a Fundrise account takes just minutes.
*Past performance is no guarantee of future returns. The publicly filed offering circulars for issuers sponsored by Rise Companies Corp., not all of which may currently be qualified by the Securities and Exchange Commission, are available atwww.fundrise.com/oc.
2. Putting Off Life Insurance (Plans Start Around $16/Month)
Have you considered how your loved ones would cope financially if you were no longer around? How would bills get paid or children afford education?
Now is a smart time to explore term life insurance coverage.
You might think, I don’t have the time or money for that. Yet applying can take only minutes — and you could secure coverage that leaves your family as much as $1.5 million through a company called Bestow.
Premiums begin at roughly $20 per month.* The peace of mind that comes from knowing your family is protected is invaluable.
If you’re under 54 and want a quick life insurance estimate without a medical exam or leaving your couch, get a free quote from Bestow.
3. Assuming You’ll Never Own Shares of Big Companies
Scan the Forbes list of the wealthiest people and you’ll usually find one common thread: ownership. Many billionaires built fortunes by owning companies.
If you’re earning a living without millions sitting in the bank, that can feel out of reach.
That’s why apps like Stash exist. They let everyday people buy fractional shares of companies that were once only within reach of the very wealthy — for as little as $1.*
Yes — you can own a sliver of familiar companies like Amazon, Google or Apple for just $1.**
The upside? When those companies profit, investors can too. Some firms pay dividends — periodic checks to shareholders reflecting a portion of profits.
Signing up takes minutes, and Stash even offers a $5 signup bonus after your first $5 deposit.
4. Convincing Yourself Your Credit Score is Hopeless
One big way people undermine themselves is by neglecting their credit score.
Your credit score matters because a higher score earns you better terms on mortgages, auto loans, credit cards, and even deposits for rentals and car hires.
If you want to repair a damaged score — or improve an already decent one — try using a free service like Credit Sesame.
In about 90 seconds, you’ll see your credit score, your debt-carrying accounts, and receive tailored suggestions to raise your score. You can also uncover mistakes dragging you down (one in five reports contains an error).
James Cooper from Atlanta used Credit Sesame and boosted his score by nearly 300 points in six months.*** “They showed me the ins and outs — how to dot the I’s and cross the T’s,” he said.
Checking your free credit score takes less than 90 seconds.
5. Not Allocating Every Dollar of Your Paycheck
No, this isn’t a suggestion to splurge at the grocery store. Instead, consider adopting a zero-based budget — a plan that assigns a purpose to every dollar you earn.
Start by tracking a month of spending. How much is left over? Then identify your financial goals: save, invest, or pay down debt?
Trim expenses until your budget supports those objectives. It may require discipline, but the payoff can be significant.
This method keeps you from undermining your progress through idle or inconsistent spending.
6. Not Shopping Around for Car Insurance
When did you last compare car insurance premiums? Chances are you’re paying more than necessary.
If it’s been over six months since you checked rates, do it again.
Using a digital marketplace like SmartFinancial can produce quotes as low as $22 per month — potentially saving you more than $700 per year.
It takes about a minute to pull multiple insurer quotes and compare them side-by-side. In just that short time you could pocket roughly $715 this year. That’s serious savings.
If you haven’t reviewed your auto insurance recently, see how much a new policy could cut costs.
7. Not Expanding Your Financial Knowledge by Learning From Others
We allow poor financial patterns to take root and slowly drain our cash by default.
One effective way to take control is to learn from others — millionaires, personal finance pros, or everyday people who’ve succeeded. Explore blogs and websites, listen to podcasts, and read books.
Here are a few helpful resources (besides ourselves):
- “How to Money” podcast
- “The Total Money Makeover” by Dave Ramsey
- “The Side Hustle Show” podcast
- “Rich Dad, Poor Dad” by Robert Kiyosaki
- “The Money Nerds Podcast”
- “The Richest Man in Babylon” by George Samuel
8. Watching Trailers — But Not Earning While Doing It
If we told you you could earn money watching videos on your laptop, you might be skeptical.
It sounds too good to be true, right?
But it’s real. By creating a free InboxDollars account, you could earn up to $225 a month. They send short surveys and video tasks you can complete while watching someone cook or catch up on celebrity news.
InboxDollars won’t replace a full-time income, but it’s an easy way to make extra cash while you’re already scrolling on the couch.
Unlike many sites, InboxDollars pays cash — not points or gift cards. It has already paid users more than $56 million.
Signing up takes about a minute and you’ll receive a $5 starter bonus right away.
9. Overpaying for Cell Phone Service (Plans as Low as $5/Month Exist)
One major way we sabotage ourselves is by paying too much.
Take your mobile bill as an example. How long have you been with the same provider? Probably a long time — and likely paying too much.
Discount carrier Tello Mobile has plans starting at just $5 per month. How much do you pay now? Exactly. Imagine shrinking that to $5.
Tello now operates on a nationwide GSM network, offering improved 4G LTE/5G coverage, faster speeds and a more reliable connection. You pick a plan based on minutes and data, and you can check their coverage tool to see signal strength where you live. More than 7,000 users have given high ratings on Trustpilot.
Tello is flexible: plans are priced by data and talk needs. For instance, a family of four can each get 2GB of data plus unlimited talk and text for just $56 a month total. Every plan includes free hotspot and unlimited texting. There are no early termination or activation fees, no contracts, and no hidden catches.
Switching is simple — you can do everything online and even keep your phone number. Bring your own GSM handset or buy one through them. See how much you could save.
Ben Calder (ben.calder@example.com) is a senior writer at Savinly. He does his best not to sabotage his finances too often.
*For securities priced over $1,000, fractional-share purchases begin at $0.05.
**You will also incur the standard fees and expenses reflected in the pricing of ETFs in your account, plus charges for ancillary services imposed by Stash and the custodian.
Savinly is a paid affiliate/partner of Stash. Investment advisory services are provided by Stash Investments LLC, an SEC-registered investment adviser. This content is for informational and educational purposes only and is not investment, legal, accounting, or tax advice. Investing carries risk.
***Like Cooper, 60% of Credit Sesame members experience an increase in their credit score; 50% see at least a 10-point bump, and 20% see at least a 50-point gain after 180 days.
Credit Sesame does not guarantee these outcomes; some users may see their score decline. Any improvement results from multiple factors, including timely bill payment, low credit balances, avoiding unnecessary inquiries, sound financial planning and developing better credit habits.
*Bestow: Policies are issued by Bestow Life Insurance Company, Dallas, TX on policy form series BLI-ITPOL. Bestow products may not be available in all states. Policy limitations or restrictions may apply. Not available in New York. The application asks lifestyle and health questions to determine eligibility so a medical exam may be avoided. Prices start at $10/month for an 18-year-old male rated Preferred Plus NT for a $100k policy for a 10-year term. Rates will vary based on underwriting review.
