Keep wasting money on these things and stay broke forever.
Being broke isn’t just about how much you make—it’s about how you spend it. Some people bring in decent money but still struggle, constantly wondering why their bank account is empty.
The problem? They throw cash at things that don’t matter, piling up small, pointless expenses that add up fast. Then they blame their paycheck instead of their choices.
If you’re tired of being stuck in the same financial rut, it’s time to take a hard look at where your money is really going. The difference between building wealth and staying broke isn’t just about earning more—it’s about stopping the stupid spending that keeps you in a never-ending cycle of being broke.
These are the worst money traps that keep people poor.
1. Wasting cash on brand-new cars that lose value instantly.
Driving a flashy, brand-new car might make you look rich, but it’s one of the fastest ways to drain your bank account. The second you drive it off the lot, according to Dave Ramsey, it loses 9% of it’s value, yet you’re stuck paying thousands in interest, insurance, and depreciation. People with real wealth understand this, which is why they don’t throw money at shiny, unnecessary car payments.
A slightly used car—just a few years old—can save you thousands while still being just as reliable. Financing an overpriced vehicle just to impress people is financial self-destruction. Instead of locking yourself into years of debt, focus on getting a car that fits your budget without wrecking your future.
2. Paying for overpriced daily coffee when you’re broke.
Spending $6 on coffee every morning seems harmless—until you do the math. That’s over $2,000 a year on something you could make at home for a fraction of the price. It’s not about never enjoying life, but if you’re constantly struggling with money, why are you handing over cash for something that’s so easy to cut back on?
Making coffee at home isn’t just cheaper—it’s just as convenient once you get into the habit, as stated by Pamela Vachon. Even switching to a cheaper local coffee shop instead of the overpriced chains can offer some savings. If you’re serious about getting out of the broke cycle, start with the little things that quietly eat away at your money.
3. Blowing money on fast food instead of cooking at home.
Convenience is expensive, and fast food is one of the biggest money pits for people who claim they’re broke, as reported by Melanie Allen of Partners in Fire. Grabbing takeout might seem easier than cooking, but when you’re doing it multiple times a week, your budget takes a serious hit. A single fast-food meal costs as much as an entire bag of groceries that could last for days.
Cooking at home isn’t just cheaper—it’s healthier and saves you from wasting money on overpriced, low-quality food. Meal prepping even a couple of times a week can slash your food costs in half. If you’re constantly broke but still hitting the drive-thru, you’re throwing your money straight into the trash.
4. Paying ridiculous amounts for name-brand clothes.
If you’re living paycheck to paycheck but dropping cash on designer logos, you’re doing it wrong. High-end brands mark up their products simply because people are willing to overpay for a name. Meanwhile, those who actually have money know how to shop smart, choosing quality over hype.
There’s nothing wrong with dressing well, but paying double for the same quality just to flex is financial nonsense. Sales, outlet stores, and quality generic brands exist for a reason. The goal isn’t to look rich—it’s to be rich, and that means spending wisely instead of chasing labels.
5. Subscribing to a million streaming services you barely use.
Netflix, Hulu, Disney+, HBO Max, Spotify, Apple Music—the list never ends. A few dollars here and there doesn’t seem like much, but when you’re subscribed to multiple services, you’re paying way more than you realize. Most people don’t even use half of what they’re paying for, yet the charges keep rolling in every month.
Cut the excess. Pick one or two services you actually use and ditch the rest. Better yet, split costs with family or friends. You don’t need every streaming service out there, especially if your bank account is constantly running on empty.
6. Paying for lottery tickets instead of building real wealth.
People who are bad with money love playing the lottery. It’s a fantasy—an easy way out of financial struggles without actually making any changes. But the odds are so ridiculously low that you’re better off setting that money on fire.
Instead of spending cash on lottery tickets, put it toward savings, investments, or even learning a new skill that can increase your income. The rich don’t gamble their way to wealth—they make strategic moves with their money. If you’re banking on a jackpot to fix your financial problems, you’re just keeping yourself broke.
7. Dropping money on the latest phone when yours still works fine.
Tech companies know exactly how to get you to spend money—release a slightly upgraded phone every year and make you feel like you need it. But unless your phone is broken or seriously outdated, upgrading just because a new one came out is a complete waste.
That $1,000 could be going toward something that actually builds your future instead of a minor camera upgrade. The smartest people hold onto their devices for years and only replace them when necessary. If your financial situation isn’t stable, the last thing you need is another unnecessary expense.
8. Paying for unnecessary bank fees.
Overdraft fees, ATM charges, and maintenance fees are nothing more than money down the drain. Banks make a fortune off people who aren’t paying attention to their accounts, charging for things that could easily be avoided.
Find a bank that doesn’t charge monthly fees and set up overdraft protection to avoid penalties. Small changes like switching to a free checking account or using in-network ATMs can save hundreds every year. Keeping track of your finances shouldn’t cost you money—it should save you from wasting it.
9. Financing furniture you can’t afford.
Walking into a furniture store and signing up for a monthly payment plan might seem smart, but it’s a trap. High-interest financing means you’ll end up paying way more than the actual cost of the furniture. And if you miss a payment? Expect brutal fees that make it even worse.
Buying secondhand, waiting for major sales, or saving up instead of financing can save you thousands. If you’re constantly broke, the last thing you should be doing is locking yourself into another payment. Comfortable living doesn’t have to mean unnecessary debt.
10. Paying for expensive gym memberships and never going.
Signing up for a fancy gym feels productive—until you realize you’re barely using it. If you’re struggling financially, spending $50-$100 a month on something you don’t even take advantage of is just bad money management.
There are plenty of free or cheap ways to stay in shape. Running, home workouts, or even budget-friendly gyms can get the job done without wrecking your wallet. If your finances are tight, start cutting out things you’re paying for but not using.
11. Spending on impulse purchases instead of actual priorities.
Emotional spending is one of the biggest reasons people stay broke. Bored? Buy something. Stressed? Online shopping spree. These small, impulsive buys don’t seem like much at the moment, but they add up fast and leave you wondering where your money went.
Creating a budget and sticking to it is the easiest way to avoid unnecessary spending. Before you buy something, ask yourself if you really need it. If you’re constantly running out of money but have a house full of stuff you don’t use, it’s time to rethink your spending habits.