According to financial expert Jaspreet Singh, many people stay poor due to money habits rather than a lack of income. Dave Ramsey’s State of Personal Finance study supported the idea that a high income doesn’t necessarily lead to wealth or financial success, as even 36% of six-figure earners were stuck in the paycheck-to-paycheck cycle.
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In a recent YouTube video, Singh discussed seven lesser-known money habits that make it challenging for many Americans to grow wealth. See if any of these are familiar to you and learn what he suggests for financial success.
Trusting the System To Care for You
Singh said, “The government will never take good care of you, and it will never take as good care of you as you could.”
While government assistance programs can help during tough times, Singh cautioned that they’re not a path to financial freedom and often lead to unfulfillment. If you want to enjoy financial stability and the finer things in life, you’ll need to take control of your own finances.
This also ties into the importance of retirement savings. The Social Security Administration notes that many recipients rely on their payments as a primary income source, but those payments are only designed to replace about 40% of pre-retirement income.
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Buying Based on Qualification, Not Affordability
Singh explained that many people determine affordability by looking at the minimum monthly payment for their new purchase. Especially when paired with 0% interest promotions, payment plans can make it more comfortable to buy things that don’t fit your budget or that you don’t even need.
For example, Singh described buying an iPhone and adding accessories like AirPods and a phone case, since you don’t have to pay everything up front. The monthly payment may seem manageable, but even interest-free promotions often include fine print that penalizes you if you don’t pay off the balance in time.
His advice: Don’t finance items like phones or cars unless they help you earn money. Saving up can lead to smarter purchases and help you avoid interest charges.
Rewarding Yourself for Being Broke
Stress can lead to emotional spending — treating yourself to a designer purse or a spa day. But Singh said these are the worst times to make poor financial decisions, as they can worsen your situation.
“When you are going deeper into debt, when you are fueling this broke habit of rewarding yourself for being broke, well, now you’re rewarding bad habits, and now it’s going to be almost impossible to get out,” said Singh.
Instead, spend only what you have and keep working toward financial recovery, even when it’s hard. When you need a break, consider no-cost options like a relaxing bath, reading a book, or going for a walk.
Treating Time as Free and Money as Scarce
Since time is limited, it’s sometimes wise to spend money if you can get some time back for things that are important to you. For people making $50,000 or more, Singh recommended hiring someone to cook meals, clean the house, do yard work, help with laundry and drive.
He estimated that you might pay $15 to $25 per hour for these services, which you can find through local businesses or sites like TaskRabbit and Thumbtack. According to Singh, the potential time saved from outsourcing the five tasks is 40 hours every month.
Also, make good use of the saved time, whether that means spending it with loved ones, building skills or finding new ways to make money.
Being Too Comfortable Watching Netflix
A March 2025 Deloitte study found that Americans spent an average of six hours per day on digital media, including 2.8 hours watching TV and streaming video services.
While streaming Netflix after a hard day is relaxing, Singh explained that it’s not the best move for people in financial trouble. That includes those with costly credit card debt, which averaged $6,371 per borrower in the first quarter of 2025, according to TransUnion data.
Singh said that the time could be better spent on increasing your income, paying off debt and investing, all of which can help you become wealthier.
Jumping Over Dollars To Save Pennies
Singh discussed how many people have no problem spending money on enjoyable things, such as vacations and dining out at restaurants. However, they hesitate to spend money to educate themselves about finance and other areas that can improve their lives. Unfortunately, this can keep them poor.
Singh advised, “Go out there and start learning because your financial education is what’s going to allow you to earn more money, invest better, grow your money, and build wealth.”
You don’t have to jump right to expensive courses or seminars either. Picking up some personal finance books or finding free training online can still pay off if it helps you build money skills.
Asking for Permission To Get Started
Some people stay poor because they hesitate to take action — like investing — out of fear or uncertainty. Singh said they may be waiting for someone to guide them.
But without action, there’s no progress. Mistakes and failures are part of the journey, including Singh’s own.
He recommended researching brokerages and stocks online and learning as you go. Just start with a reasonable amount to minimize risk as a new investor.
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This article originally appeared on GOBankingRates.com: 7 Money Habits That Keep Americans Poor, According to Jaspreet Singh
