Do not save what is left after spending; instead spend what is left after saving.”
Warren Buffett
Achieving financial security isn’t just about making enough money—it’s about saving and investing wisely to make that money last and grow.
If growing your savings is a goal for 2025, you’re already ahead of the curve. According to a study by Northwestern Mutual, one in five Americans have no retirement savings at all, and 44% report feeling stressed about money. The good news? You can avoid sabotaging your savings by correcting some common habits.
Your finances should provide peace of mind and pave the way to the life you envision. Here are four money habits that could be undermining your savings—and how to change them.
1. Not Tracking Your Spending + Living Within Your Means
Creating a budget is important, but sticking to it is where the real challenge lies. Without tracking your spending, it’s easy to lose sight of where your money is going. You might think you have no money left at the end of the month—when, in reality, it’s just being spent in places that don’t support your financial goals.
Tracking doesn’t have to be complicated—use apps that track your spending and help set limits, or go old-school with an Excel spreadsheet. Find what works for you, but most importantly, stay consistent.
YOUR NEXT MOVE: Commit to tracking your spending for three months. After that, take a hard look at where you can make cuts, and prioritize your savings.
BONUS: Need a place to start? Download our Monthly Living Expense Worksheet to map out your income and expenses.
2. Not Paying Yourself First
Warren Buffett’s advice rings true: pay yourself first. This doesn’t mean splurging on indulgences; it means making sure your savings are your priority before spending on anything else. Whether it’s retirement savings, emergency funds, or goals like a new home, saving first ensures you’re financially prepared for the long term.
Here’s why waiting to save is a mistake: The earlier you start, the more time your money has to grow, thanks to the power of compounding interest. For example, if you start saving $425/month at 25, you could reach $1 million by 65 (assuming a 7% annual return). Wait until you’re 35, and you’ll need to save $900/month for the same result.
YOUR NEXT MOVE: Start saving today, and automate the process by setting up a direct deposit split for your paycheck. Aim for 10-15% of your income, and if that’s not possible yet, start smaller and increase it as your financial situation improves.
3. Not Paying Your Credit Card Off in Full Each Month
Credit cards are convenient, but they come with a hidden cost if you don’t pay off your balance in full. The interest rates on credit cards can quickly add up, turning your purchases into much larger expenses. Think of it this way: every time you swipe your card, you’re borrowing money—and the lender charges you interest for that privilege.
But if you pay off your balance in full each month, you avoid interest charges altogether. It’s essentially “free borrowing,” but only if you manage it properly.
YOUR NEXT MOVE: Treat your credit card like a debit card—if you don’t have the money to pay for the item upfront, don’t charge it. Set up automatic payments to ensure your balance is paid in full each month.
4. Not Purchasing Life Insurance
Life insurance isn’t the most pleasant topic to think about, but it’s crucial to securing your family’s financial future in the event of your passing. While it won’t benefit you directly, it can provide lasting peace of mind for your loved ones, covering debts and leaving an inheritance.
Even though life insurance is relatively inexpensive, many skip it, not realizing its long-term importance. It ensures your family isn’t left with a financial burden during a difficult time.
YOUR NEXT MOVE: Talk to your financial advisor about the right type of life insurance for your situation and get coverage in place today. It’s an investment in your family’s security.
Take Control of Your Financial Future
Many people desire financial security but hesitate to take the necessary steps to achieve it. By eliminating these four money habits, you’ll be well on your way to a stable, secure financial future.
Ready to dive deeper and learn how to make your money work harder for you? We’d love to help you create a tailored plan for your financial goals. Schedule a free consultation today to get started.