For most people, money is the root of all of their problems. Too little money results in poor quality of life. Despite your efforts to gain more money, you could end up feeling hopeless. Knowing what you earn is not enough to sustain financial independence can easily stress you out. On the other hand, not caring much about your finances can surely impact your financial future. This is why money management becomes a must for people from all walks of life.

The problem is, no matter how much you yearn for financial independence, it won’t be handed to you in a silver platter. Others may have been born not needing to worry about their future finances. But they still have to make the right decisions to ensure they don’t run out of resources.

The best way to achieve financial success is to start determining the things you do wrong that impact your financial health. Only then can you start turning things in for the better. The following are common habits that stop people from gaining financial independence.


Goal setting is crucial if you want to achieve financial independence. It is not enough that you know you want to build your wealth and attain financial security. You also need to set life goals and establish a plan that will help you achieve financial independence.

Start by listing specific goals like how much money you wish to save when. Think of ways you can achieve this and what changes you ought to make things happen. Writing your goals down and placing this somewhere where you can always see this will help motivate you into sticking to your plans.

Your financial goals and timeline will help you track your progress. If you fail to achieve a milestone on a given date, it only shows you need to make the necessary changes to get back on track. Once you reached a milestone, continue ticking goals in your list and add more to nurture your goal.


Having a contingency plan is just as important as setting financial goals. Remember that there are many things we can’t control, no matter how hard we try to do it. Having multiple backup plans will make a difference in case you come many bumps along the way.

Saving for an emergency fund, for instance, allows you to keep your life savings and still be able to afford emergencies. Make sure you have a different account for your savings and emergency funds. As a general rule, your emergency fund should sustain at least six months’ worth of your living expenses.

The kinds of backup plans you will need will depend on your situation. For most people, it involves investing in different insurance to cover their costs and expenses. This includes health insurance, long-term disability insurance, and life insurance.

If you are a homeowner, then you definitely need homeowners insurance and possibly a home warranty. Aside from these, you ought to save enough money to cover unexpected homeowner’s expenses. This can help cover future home and maintenance projects such as mold remediation, lawn care, and mosquito and pest control.


It is a good sign if your monthly income starts to increase. But most people tend to increase their budget expenses as their income grows. This is one reason why many people fail to achieve financial independence.

Take it from one of the richest people in the world, Warren Buffet. Buffet still lives in his humble home despite having net worth of $101.2 billion. His secret is to live way below your means even if you can afford all the riches in the world.

He stays frugal knowing this is the best way to maintain financial independence. Buffet continues to invest money aggressively and recently earned an additional $8.3 billion this year alone. This shows how living below your means and grabbing the right opportunities can make a big difference when it comes to your financial health.

If you want a brighter financial future, focus on your needs rather than your wants. This does not necessarily mean you should avoid indulging in things that make you happy. The key is to create a balance without putting yourself at a financial risk you can’t afford.

Once your income starts to grow, avoid thinking of what you can now afford. Think of what your essentials are and focus on your goal. Start paying off your debts and find ways to continue building your wealth by substantially increasing your expenses.

These are but three habits most people have the stops them from being financially secure. You could be guilty of blindly managing your finances. You may have a tendency to increase your expenses as your income grows. Or maybe, you go ahead living each day without a backup plan. The moment you start correcting these habits, the easier it will be for you to achieve financial security.