10 Reasons Why You Can't Get Ahead Financially (2024)

Do you feel like you are constantly stuck in a financial rut? Maybe you are living paycheck to paycheck, or maybe you just never seem to be able to build up a savings or pay off debt. What do you have to do to get ahead?

There are many reasons why you may not be where you want to be financially, and here are 10 common reasons.

1) You Don’t Have a Budget

No matter what you make or how you spend, a budget is imperative to getting ahead financially. Many people are afraid of the word “budget” because they automatically assume it is restrictive. But I assure you, by creating a budget, you are essentially just prioritizing your spending. In fact, a budget should better allow you to afford the things you want in life while eliminating or downsizing the things that aren’t as high of priorities in your life.

While it would be nice to have unlimited money, the fact of the matter is that everyone, whether you make $10,000 or $1,000,000 a year, needs a budget. This will allow you to meet all of your financial goals, whether it is saving, paying off debt, or other.

2) You Don’t Have an Emergency Fund

Do you have adequate savings if an emergency came up? What if your car broke down, you lost your job, or you were diagnosed with a serious medical condition? While these rhetorical events are not pleasant to think about, they could happen to any one of us at any time.

Emergency funds are funds that are set aside specifically for that – emergencies. They can be however big or small you want, but if you’re just starting out, even a $1,000 emergency fund can protect your finances significantly. Without an emergency fund, you will likely find that you have to resort to credit cards for funding. Credit cards, though useful when used correctly, have a very high interest rate. Using a credit card in an emergency will only deepen the financial hole.

The good news is emergency funds are pretty simple to start. The trick is to open a new bank account, where your money won’t be too accessible or tempting for you to use on a regular basis. Remember, this money is only for emergencies.

3) You Don’t Earn Enough Money

If you are constantly living paycheck to paycheck, despite taking a hard look at your spending, the problem may be that you simply don’t earn enough money.

While it might be tempting to blame your employer for this, you actually do have more control over how much you make than you may realize. You can use these tips to earn more money at your current job, or you can find a new, higher paying job. Of course, you can also start a side hustle to earn extra money on the side, such as blogging, freelance writing, or taking surveys.

4) You Try to Keep Up With the Joneses

Are you always looking for the newest toy or gizmo? Keeping up with the Joneses is not only expensive, but it is relatively unfulfilling. As the saying goes, “We buy things we don’t need with money we don’t have to impress people we don’t like.”

I personally catch myself often envious of what my friends or neighbors have, and I have to remind myself of this. The people who do care about me hopefully care more about my financial well-being than the amount of stuff I own. Who do I have to impress?

5) You Use Credit Cards Wrong

Credit cards, when used correctly, can be an enormous asset to your financial journey. Many financially responsible people use credit cards solely for points, but pay their cards off every month. Other individuals struggle to use credit cards responsibly. A credit card can prove tempting if you are a natural spender, or if you aren’t sure of the correct way to use them.

Credit should be paid off every month. When you have to carry credit over month to month, it ends up hurting you with the high interest rate. So observe yourself and your attitude towards credit cards. If you find you can’t use credit cards without temptation, then stick to cash. But if you are able to responsibly use a credit card, make sure you are using it to your advantage and obtaining as many bonuses or points as possible.

6) You Ignore Your Debt

The reality is debt will never simply disappear. It will keep building and growing in interest until you are able to acknowledge it. Truly, it’s in your best financial interest to hit your debt head on if you are able to.

If you are struggling to repay your debt, know that you are not alone and that you have options. You can side hustle to earn more money to pay off debt, you can talk to your debtors, and you can negotiate your rates, for a few examples. Though your debt isn’t likely to simply disappear, you do have more control over it than you may realize.

7) You Aren’t Willing to Sacrifice or Commit

What’s the #1 secret to financial success? Commitment. If you are looking to get ahead financially, you truly have to commit to it long-term. A big part of being committed financially means being able to say no to things that may tempt you along the way.

Just like with anything, commitment is hard. Likely, failure or stumbles at some point are inevitable. The key to committing to your finances is acknowledging that every small financial decision you make today affects your future. That’s how you can finally get ahead financially.

8) You Aren’t Saving for Retirement

Can you ever truly get ahead financially if you don’t have a plan for retirement? Setting money aside for retirement is one of the best long-term financial decisions you can make.

Saving for retirement can be challenging, especially if you have a low income. However, even starting to save just 1% of your salary can add up big-time in the long-run.

9) You Succumb to FOMO

Saying no to get-togethers, activities, or events is challenging, but saying yes is usually expensive. In order to get ahead financially, you have to be honest with yourself and what your financial priorities are. If you find yourself paying money you didn’t plan to spend just because you didn’t want to miss out, you may be suffering from FOMO, or fear of missing out.

You can still enjoy all of your favorite activities and spend time with friends without spending an arm and a leg. A budget is a great first step to allow yourself money every month to spend socializing, without allowing it to break the bank.

10) You Think About Today, and Not the Future

Developing a long-term consideration is key in getting ahead financially. Every dollar saved or invested wisely for the long-term is worth significantly more than a dollar in the present. When you are able to remind yourself of that, the impulsive purchases you want to make don’t seem as important.

What are your biggest barriers to overcome/what barriers have you overcome in order to get ahead financially?