People are rarely made overnight. Instead, it usually happens gradually as a series of bad financial decisions accumulate. Few of us can afford to make many financial mistakes. This includes relatively high incomes.
According to YouGov, 36% of US adults earning more than $100,000 a year struggle to make ends meet. (1)
Meanwhile, a Harris poll found that more than half of six-figure earners would only feel financially secure if their income doubled, and three-quarters would use a credit card because they ran out of cash recently. (2)
In other words, you can’t overcome bad spending habits. And if you say yes to any of the essentials listed below, you’re probably also on the path to financial insecurity.
Helping friends and family with their financial struggles is noble, but it can quickly derail your own finances. Unfortunately, it is difficult to say “no” to loved ones.
Nearly six in 10 parents admit to providing some financial assistance to their adult children, according to Pew Research. (3)
Furthermore, according to a 2025 survey by JG Wentworth, 53% of adults say they have lent money to either a friend or a family member at least once, and 48.3% would ask a family member for money without waiting for them to pay it back. (4)
Simply put, lending money to loved ones is almost on par with throwing cash into a black hole. That doesn’t mean you should turn down all applications for financial aid. However, if you say yes too often, you put yourself in a financially vulnerable position.
The costs of dining out, attending concerts and going on holiday have risen rapidly in recent years. US adults currently spend $2,841 per year on dining out and takeout, according to CNET (5), while the average annual household entertainment budget is $3,636, according to Ramsey Solutions. (6) Add in occasional expenses like birthdays and anniversaries, and you can see why an active social life is an expensive luxury.
You don’t have to give up all opportunities to socialize and live like a recluse, but occasionally saying no could help you accumulate significant savings over time.
High earners have greater access to credit, and many of them take full advantage of this.
According to a 2025 survey by PYMNTS, high-income shoppers are 40 percent more likely to rely on buy-now-pay-later programs than their lower-income peers. (7) And according to BHG, 62% of people making more than $300,000 a year struggle with credit card debt. (8)
If you’re in this cohort, resist the temptation to max out all the credit available to you. Accumulating multiple monthly interest payments can quickly deplete even a high six-figure salary.
Read more: This is the quiet portfolio shift many wealthy investors are making in 2026. Should you consider it too?
The average consumer spends $282 per month on impulse purchases, according to Capital One. (9)
Most impulse purchases are relatively small items such as shoes, gadgets or accessories. If you’re making big-ticket impulse purchases, that’s a red flag.
Buying a new appliance or renovating your kitchen on a whim might not seem like a big deal, but it can have far-reaching consequences for your financial future.
A practical way to limit impulse spending is to set a personal spending ceiling. For example, you can impose a mandatory seven-day pause before proceeding with any purchase over $1,000.
During that week, you could research prices, compare alternatives, and confirm that you actually need the item you plan to buy.
Buying a home, especially if it’s your first, is an emotionally charged decision. And because emotions are so powerful, it’s easy to buy a home that’s either too big or too expensive for your budget.
Nearly three-quarters of first-time homebuyers and 65% of all homebuyers had some regrets about their purchase, Clever Real Estate claims. (10)
According to real estate technology company St. Louis, more than half of first-time homebuyers felt overwhelmed financially, while 38% of all buyers said they exceeded their original home budget.
Housing costs are usually the largest line item in the average household’s budget, and overspending can have long-term implications for financial security. Avoid regret by sticking to a strict budget and some financial guardrails.
For example, you can limit your home search to properties that are less than four times your annual income and monthly payments that are less than one-third of your monthly salary.
Buying a home you can easily afford could be the ultimate game changer for your financial future.
We only rely on verified sources and credible third-party reports. For details, see our ethics and editorial guidelines.
YouGov (1); Harris Poll (2); Pew Research Center (3); JG Wentworth (4); CNET (5); Ramsey Solutions (6); Pymnts (7); BHG Financial (8); Capital One (9); PR Newswire (10).
This article provides information only and should not be construed as advice. Offered without warranty of any kind.
