Are You Sabotaging Your Own Financial Success?
Have you ever looked at your bank account and thought, Where did all my money go? Or promised yourself, Next month, I’ll start saving—only to watch the cycle repeat over and over again?
If so, you’re not alone. But here’s the hard truth: financial success isn’t just about how much you earn—it’s about your habits, your mindset, and your ability to recognise when you’re standing in your own way.
The good news? You can break free from self-sabotaging money behaviors. But first, you need to understand why they happen in the first place.
Procrastination: “I’ll Deal with it Later”
Why We Do It:
Deep down, we know financial planning is important. But our brains crave instant gratification. Thinking about retirement? Too far away. Creating a budget? Sounds boring. Paying off debt? Overwhelming. So, we tell ourselves we’ll do it later—but later rarely comes.
This is called present bias—the tendency to prioritise immediate pleasure over long-term benefits. Our brains trick us into thinking future us will be more responsible, more disciplined, more willing to tackle these hard financial decisions. But when the future arrives, we’re still the same person, with the same excuses.
Breaking the Cycle:
Make the future feel urgent. Instead of thinking about retirement as something decades away, visualise what your life will actually look like at 65. Where will you live? Will you still be working? Can you afford the lifestyle you want?
Shrink the task. Instead of saying, I need to plan my entire financial future, start small: I will set up an automatic $100 transfer to my savings every time I get paid.
Get an accountability partner. You’re 65% more likely to achieve a goal when you share your commitment with someone. And if you schedule regular check-ins with an accountability partner, your chances of success increase to 95%. Tell a friend your goal and ask them to check in on you—accountability is a powerful motivator.
Emotional Spending: “I Deserve This”
Why We Do It:
Have you ever bought something just because you were stressed? Bored? Celebrating?
Emotional spending is deeply rooted in dopamine-driven decision-making. When we buy something new, our brains get a hit of dopamine, the “feel-good” chemical. Retail therapy isn’t just a saying—it’s a very real, very addictive cycle.
To make things worse, advertisers know exactly how to play to our emotions. That limited-time sale? It’s triggering your fear of missing out (FOMO). That influencer making you feel like your life isn’t glamorous enough? They’re playing on your insecurities.
Breaking the Cycle:
Pause before you purchase. When you feel the urge to spend, wait 24 hours. Ask yourself: Am I buying this because I need it—or because I’m feeling something?
Find alternative rewards. If spending money gives you a dopamine hit, replace it with another dopamine-boosting activity: exercise, learning something new, or even calling a friend.
Track your spending triggers. Keep a journal for a week. Write down every unnecessary purchase and what you were feeling when you bought it. You’ll start seeing patterns—stress, boredom, loneliness—that you can address in healthier ways.
The Minimum Payment Trap: “At Least I’m Paying Something”
Why We Do It:
Debt is overwhelming. When you see a huge balance, making the minimum payment feels like all you can do. It gives us a false sense of progress—we’re paying something, so we must be doing okay, right?
But here’s the psychological trap: making just the minimum keeps you in debt for years longer than necessary. Credit card companies thrive on this—it’s why they highlight the minimum amount rather than what you actually need to pay to get out of debt.
Breaking the Cycle:
Face the numbers. It can be scary, but knowledge is power. Use an online debt calculator to see how long your debt will last if you only make minimum payments.
Start small. Even paying just $20 extra per month can significantly cut down the interest you owe.
Create a plan. Develop a structured approach to paying off your debt by setting clear goals and timelines. Outline how much you can realistically pay each month beyond the minimum and track your progress consistently.
No Emergency Fund: “I’ll Figure it Out”
Why We Do It:
We know we should save for emergencies. But if nothing bad has happened recently, our brains convince us that we’re fine. This is called normalcy bias—the tendency to believe that just because something hasn’t happened yet, it won’t happen in the future.
But emergencies happen…unexpectedly. The car will break down. A medical bill will appear. Something around the house will need repairing. And when they do, people without emergency funds turn to debt, sinking even deeper into financial stress.
Breaking the Cycle:
Make it automatic. Set up a small weekly transfer to a separate emergency account. Even $10 a week adds up.
Rename your savings account. Studies show that we’re more likely to save when we attach a name to our goals. Call it your Safety Net Fund or Peace of Mind Account to reinforce its purpose.
Treat it like a bill. You wouldn’t skip rent or your car payment—treat your emergency fund with the same urgency.
Lifestyle Creep: “I’m Earning More, So I Can Spend More”
Why We Do It:
It’s easy to go up in lifestyle but hard to go down in lifestyle. You may be earning more, and your spending has quietly expanded alongside your paycheck. This is lifestyle inflation—and it’s the reason many high-earners still live paycheck to paycheck.
What once felt like a luxury—dining out, premium subscriptions, upgraded gadgets—soon becomes the new normal. Then, there’s social comparison—when we see friends, colleagues, or social media influencers living a certain way, we feel the pressure to keep up, even if it means stretching our finances.
Breaking the Cycle:
Live on last year’s income. If you get a raise, keep living on your previous income. Use the surplus cashflow as a way to build your savings, pay down debt or allocate towards your investments.
Redefine success. Instead of thinking success means a bigger house or fancier car, shift your mindset to fulfilment. True success is financial freedom, peace of mind, and the ability to live a life on your terms.
Automate wealth-building. Set up automatic contributions to investments, debt or savings before you even see your new income.
It’s Not Just About Money, It’s About Freedom
Money isn’t just about numbers. It’s about choices. It’s about reducing stress, securing your future, and living life on your terms.
The hardest part of breaking bad money habits isn’t the numbers—it’s rewiring your brain and habits. But you can do it. And the moment you start taking control of your finances, you’ll feel something incredible: relief.
So ask yourself: Which of these habits do I need to break? And more importantly—what action will I take today?
About the Author
John Cachia is a seasoned financial adviser and dedicated parent of three boys. With a passion for financial literacy and wealth management, John has been in the industry since the young age of 14. His early start in finance has provided him with a wealth of experience and insight, which he now uses to guide families towards achieving their financial goals. As Australia's leading wealth adviser for young families, John is committed to helping parents become positive financial role models for their children, ensuring a secure and prosperous future for the next generation.
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