5 Financial Habits Keeping You Broke

5 Financial Habits Keeping You Broke, According to Money Expert Michela Allocca

Caitlyn Moorhead  Thu, October 3, 2024   GOBankingRates

The strategies and habits that lead to your personal financial success aren’t just comprised of big investments and down payments, but also of knowing which things to avoid. According to money expert and financial analyst Michela Allocca, a rising voice in personal finance, certain financial habits are major contributors to keeping people broke.

She said, “Personal finance success is 10% strategy and 90% behavior. There are so many things you can do that are external of your income to help ensure you stay on the right path.”

So many money moves are positive, such as starting an emergency fund, diversifying your portfolio or maximizing your 401(k). However, keep reading to discover the five habits Allocca says you should break unless you want to stay broke.

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Not Keeping a Grocery List

If you are living paycheck to paycheck and spending every dollar you earn, there’s no room for impulse buying at checkout if you want to start saving.

Grocery shopping is inevitable, but Michela Allocca said it doesn’t have to derail your monthly budget. Keeping a grocery list is a great way to ensure you stick to your budget while shopping.

“Having a grocery list and shopping my pantry makes it so much easier to save money on food and not waste anything,” added Allocca. “It’s a simple habit that makes a big difference!”

Not Tracking Your Expenses

One of the most common mistakes people make is failing to create and stick to a budget. One of the biggest culprits in this is not tracking your expenses.

“You need to be doing this to know where your money is going,” she said.

Allocca stressed that budgeting is not about restriction but about clarity and control over your money. Without a clear plan, it’s easy to overspend and lose track of where your money is going.

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