7 money habits that keep you poor, and what to do instead

If saving depends on there being money left over, there usually is not. Spending expands to fill whatever is in your current account.

Instead: pay yourself first. Set up a standing order to savings for the day after payday, even if it is only £25. Start low enough that you never need to cancel it, then increase it every few months. Our guide to automating your savings shows the options UK banks offer.

Most people can name their rent and bills but underestimate food, takeaways, subscriptions and small card payments by a wide margin. You cannot cut what you cannot see.

Instead: download the last three months of statements and sort every payment into needs, wants and savings. Then put the results into the budget planner. You only need to do the full exercise once; after that a quick weekly check is enough.

Minimum payments are designed to keep you in debt for a long time. Most of each payment goes on interest, so the balance barely moves.

Instead: pay a fixed amount above the minimum, by Direct Debit. As an example, £3,000 at 24.9% APR would be cleared in about 12 months at £281 a month, 24 months at £156, or 36 months at £115. If you have a reasonable credit record, a 0% balance transfer card can stop interest while you pay it down. See what different payments do with the credit card payoff calculator and our guide to paying off credit card debt fast.

Rolling contracts and old accounts often cost more than new deals. Common examples:

Lifestyle creep is when spending rises to match income, so you never feel better off despite earning more. Remember too that a pay rise is taxed: for a basic rate taxpayer in England, Wales or Northern Ireland, a £2,000 rise adds about £1,440 a year to take-home pay after 20% tax and 8% National Insurance, before any pension or student loan deductions.

Instead: decide before the money arrives. A simple rule is to save or overpay debt with half of every rise and enjoy the other half. Work out the real figure with the pay rise calculator.

Buy now, pay later, store cards and overdrafts make it easy to spend money you have not earned yet. Several small plans can end up due in the same week, and missed payments can harm your credit file.

Instead: use a 48-hour rule for non-essential purchases over a set amount, such as £50. If you still want it two days later and can pay in full, buy it. For bigger planned purchases, save first in a separate pot. Our article on how your credit score affects your savings explains why this matters.

Without savings, every surprise bill becomes debt. And many households miss money they are entitled to: wrong tax codes, unclaimed Marriage Allowance (worth up to £252 a year), benefits they did not realise they qualified for, or Help to Save bonuses for people on Universal Credit.

Do not try to fix all seven at once. Pick the one costing you most, fix it this week, then move on to the next. The single most effective change for most people is the first one: an automatic transfer on payday. If a monthly standing order feels too big, start with a small daily amount. SYM tells you how much to put aside today and builds a streak as you go, which makes the habit easier to keep. For more on making it stick, read how to build a savings habit.