Let’s talk about four financial habits that keep people broke and more importantly, how to break free.

1. Lifestyle Creep: Spending Your Raise Before You Get It

It starts innocently enough. You get a raise, so you upgrade your car. Then you move into a bigger house, get a second streaming service, eat out more often. Before you know it, your expenses have grown to match your income and you’re still living paycheck to paycheck. This is called lifestyle creep, and it’s a silent killer of financial stability. It doesn’t matter if you make $40,000 or $140,000 a year if you spend every dollar, you’re always one emergency away from disaster. The key is to pause every time your income increases and ask: “Can I keep living like I was and save the rest?”

2. Four Habits That Keep People Broke

Let’s get honest. Here are four behaviors that drain your wealth faster than you can build it:
a. Living Beyond Your Means
If you’re spending more than you make, you’re not just treading water you’re sinking. The fix? Create a monthly budget that reflects your actual income, not your ideal lifestyle. I use the EveryDollar app to track mine, and it’s been a game-changer.
b. Thinking Payments Are Normal
Car payments. Credit cards. Personal loans. We’ve normalized debt so much that most people think it’s just a part of life. But imagine what you could do if you weren’t sending hundreds of dollars to the bank every month. Use the debt snowball method: pay off your smallest debt first, then roll those payments into the next one. Keep going until you’re free.
c. Not Saving Consistently
Saving money isn’t a one-time decision it’s a rhythm. Start with a $1,000 emergency fund. Once you’re out of debt, build up three to six months of expenses. Then, aim to put 15% of your income toward retirement. Saving is a muscle—the more you use it, the stronger it gets.
d. Trying to Keep Up with Everyone Else
You know this one. You see your friend’s vacation photos and think, “I deserve that too.” But comparison is a trap. Nearly 45% of Americans go into debt just to maintain appearances. Instead, focus on your own goals. Save for the things you truly care about and skip the rest.

3. Why Budgeting Is Non-Negotiable

I’ve never met someone who got wealthy by accident. A budget is the map to your money goals. It keeps you from overspending, helps you say “no” with purpose, and shows you where every dollar is going. If you’re not budgeting, you’re guessing and that’s no way to build wealth. Use tools like EveryDollar, Mint, or even a spreadsheet. The point is to get intentional.

4. Getting Out of Debt: Your Income is Your Greatest Tool

Debt isn’t just a drag on your finances it’s a leash. Every dollar you owe is a dollar that can’t go toward investing, saving, or building your future. Getting out of debt puts your income back in your hands. When you’re debt-free, you can start to build wealth instead of pay interest. That’s how real financial freedom starts.

5. Saving for Today and Tomorrow

Build an emergency fund now, not later. The peace of mind is worth it. Once you’re stable, aim to save 15% of your income for retirement. Compound growth is real and the sooner you start, the less you’ll have to save over time.

6. Stop Playing the Comparison Game

Comparison is the thief of joy and the enemy of your bank account. Chasing someone else’s lifestyle is a guaranteed way to stay broke. Financial independence comes when you stop trying to impress others and start investing in yourself.

Final Thoughts
Breaking bad money habits is hard but it’s absolutely worth it. When you stop living beyond your means, ditch debt, start saving, and ignore the noise of other people’s spending, your life changes. You go from surviving to thriving. You don’t need to be rich to build wealth. You just need to stop doing the things that keep you broke.

All writings are for educational and entertainment purposes only and does not provide investment or financial advice of any kind.

The post 4 Financial Habits That Keep You Broke and How to Break Free appeared first on ROI TV.

Banks Profit When You Overspend
Ever wonder why banks make it so easy to get a credit card? It’s not out of kindness. Banks love it when you spend money you don’t have—especially if you only pay the minimum balance.

Why? Because they’re raking in interest rates as high as 25%. On a $6,000 credit card balance, that’s over $1,500 in interest a year—going straight into the bank’s pocket. They also push larger mortgages and car loans because their cut grows with your debt. Bottom line: when you spend foolishly, you pay them to get richer.

How Fractional Reserve Banking Really Works
Banks only keep a fraction of your deposit and lend out the rest. So when you deposit $100, the bank can lend out $90, and that $90 gets redeposited at another bank and lent out again. This amplifies the money supply, helping banks profit multiple times off a single deposit.

This system works—until it doesn’t. A massive bank run (everyone pulling their money at once) could collapse the whole thing. That’s why FDIC insurance exists, covering up to $250,000 per account. It’s not perfect, but it’s your only safety net in a fragile system.

Saving Money Can Make You Poorer
Traditional savings accounts pay around 0.41% interest, while inflation might be running over 4% per year—sometimes much higher. That means your cash is losing value every day it sits idle.

Example: $100 in a bank might grow to $105 in five years, but the cost of the same $100 item will rise to $123. You’re effectively $18 poorer just for playing it safe. Yes, you need savings for emergencies—but once you’ve got your cushion, start investing.

Become an Owner: Invest in Banks, Don’t Feed Them
Instead of paying banks interest, how about earning their profits? Banks like JPMorgan Chase and Bank of America pay dividends between 2.4% and 4.9% annually. That’s actual cash in your pocket just for owning their stock.

As a shareholder, you also benefit when stock prices go up. It’s a smarter way to engage with the system—you profit when the banks profit. While every investment carries risk, you’re flipping the game: from a consumer losing money to an owner making money.

Why Financial Education Matters More Than Ever
The current system favors investors, not savers. But schools rarely teach you how to invest, buy assets, or build wealth. So most people stay stuck in the employee-consumer loop, making banks and corporations richer.

To break out, you need to:

• Learn how money really works
• Understand where to invest strategically
• Stop throwing money at liabilities like luxury goods and high-interest debt

Knowledge really is power here.

Credit Cards: Stop Owing and Start Owning
The average American carries $6,000 in credit card debt, often at 25% APR. That’s insane. But instead of just paying it off, take the next step: invest in credit card companies.

These companies generate billions off consumer interest. If you own their stock, you get a piece of those profits through dividends and capital growth. You stop being a victim and start becoming a stakeholder.

Start Here: Market Briefs Makes It Easy
If all of this feels overwhelming, start by subscribing to the Market Briefs newsletter. It’s a free, daily update on the economy, markets, crypto, and real estate—written in plain English.

Plus, you get a free investing master class just for signing up. It’s financial education on your schedule, helping you stay ahead of the system instead of falling victim to it.

Final Thought: You Can Beat the System by Owning It
The system is designed to enrich the people who own it. Don’t just be a consumer. Don’t just be a borrower. Become an owner.

• Own bank stocks
• Own dividend-paying companies
• Own your financial future

That’s how you flip the game—and start building real wealth.

Jaspreet Singh is not a licensed financial advisor. He is a licensed attorney, but he is not providing you with legal advice in this article. This article, the topics discussed, and ideas presented are Jaspreet’s opinions and presented for entertainment purposes only. The information presented should not be construed as financial or legal advice. Always do your own due diligence

The post How Banks Make Money Off You—And How to Flip the Script to Build Wealth appeared first on ROI TV.