How is it possible that some people have money no matter what, while others go bankrupt within a couple of years of winning a lottery?

The answer is simple. Habits.

Keeping money and the ability to manage it the right way is a set of habits that money-smart people apply.

And one of the best things about living in the digital era is to have unlimited access to knowledge from the most successful and affluent people in the world.

So, rather than reinventing the wheel, we can learn what those people are doing with their money and adopt the same behaviors into our life.

Here are some examples of the habits of people who are never broke:

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Table of Contents

1. They know how to live frugally.

Many people think that frugal living is boring, but in fact, it immensely helps to get the desired life that you want by fulfilling your dreams and goals.

People who are never broke know that to maintain their wealth they need to live within their means and that it’s smart not to increase spending as income grows.

They know that by spending less they have more opportunities to save and invest money which gives them more freedom to pursue their passion.

Every dollar spent on “wants” is a potential opportunity cost, which is why these people keep their spending low.

Remember that it’s not how much you earn, it is what you do with the money that matters.


2. They set financial goals.

People who are responsible with their money and know how to manage it well always set financial goals.

Money prosperity doesn’t happen overnight, nor it happens by accident, which is why money-smart people always set goals and have an actionable plan on how they want to achieve them.

Having a clear, achievable goal gives them a direction to focus on the endpoint and they are twice as likely to save successfully.

Also, you’re much more likely to succeed and stay motivated on your target if you’re working towards something that you truly want to achieve.

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Depending on what your goal is, you can set short-term goals, mid-term-goals, or long-term goals.

TIP: Start with setting small, more manageable goals that will be achievable for you.

If you’ve never had experience with saving money, long-term goals can be too overwhelming for you and it’s more likely that you won’t stick to them.

Reaching small goals will boost your confidence and motivate you to achieve more.

3. They say no to impulse buying.

People with good money habits are aware of impulse and emotional spending and can distinguish the difference between their “wants” and “needs”.

They make sure that the purchases they make don’t come

If you want to improve your financial situation and stop your impulse shopping, remember to never buy things because they are cheap.

Instead, buy stuff that will last you a lifetime and will make your life better and you genuinely need them.

Be mindful of how you spend money.

$10 spent once probably will not make a difference, but after 100 small purchases, the total amount isn’t small anymore.

I’m not saying that you should never buy sale items. You definitely should, if this is something that you genuinely need or want.

So, from now every time you see something on sale, ask yourself “Would I still buy/want/like it if it was two times more expensive?” If not, then you know the answer.

You don’t like the item. You just like the price of it.

4. They budget their money.

People who are never broke always follow their budget. They always make sure that they don’t spend more than the amount they’ve set as a limit, which is the main goal of having a budget.

Smart-money people know exactly how much money they earn each month and what expenses they need to cover.

If you want to better manage your money, you need to realize that by spending as much as you earn and living your life that way it’s at the cost of your future.

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When it comes to practice it may turn out a bit hard, given the spending habits that you might have.

While working on your budget, you need to decide what is realistic for you and always make sure that your income is higher than your expenses.

At the end of the day, this is what will allow you to save money for your goals, whether it’s saving money for investments, retirement, or other goals.

5. They know their priorities.

After identifying their money goals, people with good money habits determine which ones they should work on first.

They know that trying to accomplish all the goals at once would be too overwhelming and could get them discouraged before they would get into work.

Prioritizing each activity in order of importance helps them get things done and don’t get left behind.

So, before you get started with setting your money management plan, you have to identify your priorities and main objectives that are going to be your motivation throughout your journey.

Ask yourself what’s important in your life, right now and figure out what can be put off for later.

6. They have a good money mindset.

A money mindset is your unique set of beliefs and assumptions around money and your financial situation.

Not only it impacts every single decision that you make about saving, spending, and handling money, but also shapes your beliefs around how much money you’re allowed to earn. 

If you think negatively about your finances and you have this belief that you’ll never be able to get ahead, this is what’s going to happen to you.

People who always have money know that money always comes back to them. They know that there is enough money for everyone.

If you want to be like them, you need to work on getting a more positive money mindset by starting with identifying your thoughts and experiences around money and reprograming these limiting beliefs into constructive ones.


7. They know the difference between needs and wants.

People with good money habits know how to distinguish the difference between something they want to buy and something they genuinely need.

They keep their priorities straight, which is what helps them manage their money so well.

Being able to understand those needs and wants and having a proper plan on how to place them in your monthly budget is the key to financial success.

A lack of this basic knowledge can result in you blowing all your money on your wants while forgetting about budgeting money for your regular expenses can result in paycheck-to-paycheck or getting in debt which is even worse.

To make it super simple for you:

Needs are necessities. Things that you can’t survive without. They include food, shelter, utilities, transport, etc.

Wants are things that you want. You can live without them, but they increase your quality of life and it would be nice if you would have them.

8. They educate themselves about money.

People with good money habits never stop learning. They know that there’s no option to get to the point in their lives when they’ll know everything and there’s nothing left to learn.

They know that economy and business world is constantly evolving, and they need to stay up to date in order to win in the money game.

They always look for new tips and tricks that can help them increase their income and savings.

If you want to make money or learn on how to retain money that you already have you need to educate yourself how the whole money world works.

And it’s never been easier.

In the digital era that we live in, the opportunities to learn something new on any financial topic are literally endless.

There are so many online courses, YouTube channels, books that are honestly game-changing.

You just need to reach for that knowledge.

Here are some simple ways that can help you improve your financial education:

  • Read books about personal finances
  • Use financial management tools
  • Listen to more podcasts
  • Read the government resources

9. They don't pay for something that they don't use.

People who are smart with money keep tracking their expenses and know when they should unsubscribe from the service that they don’t use anymore.

The list of recurring expenses that we often forget to unsubscribe after stopping using them goes on and on.

Chances are you don’t remember how many memberships you have signed in.

Once you subscribed, the recurring payment is occurring on your bank balance, without even you realizing it!

If you forget to cancel you are no longer using it will cost you over and over again!

If you want to stop wasting money on subscriptions that you don’t use, Trim is a great tool for that.

It’s a holistic personal finance app that provides personalized recommendations that can help you save money. It analyses your spending, so you can see where you overspent your money.

Financial Manager seeks out subscriptions that you’re currently paying for from the last 90 days and sends you a message with a list of all your memberships.

Once you find services you no longer use, you can simply respond to the email, telling Trim which subscriptions you would like to be canceled.

After that, Trim will notify the companies that you wish to cancel the subscription from. It’s that simple!

Are you ready to save lots of money? Sign up for Trim for free today.

habits of people who are never broke


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  1. I love this! You explain each detail so briefly and honestly. It connects to the readers to a personal level (that includes me). By the way, I love your blog’s theme. Want to read more!!!

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